58-3712. Insurance coverage; proceeds; blanket coverage. - Kansas Statutes

58-3712

Chapter 58.--PERSONAL AND REAL PROPERTY Part 6.--MISCELLANEOUS PROVISIONS Article 37.--TOWNHOUSE OWNERSHIP ACT

      58-3712.   Insurance coverage; proceeds; blanket coverage.The declaration shall require each townhouse owner to maintain fire andextended coverage insurance against loss or damage by fire or othercasualty to the full replacement value of the townhouse unit, excludingland, foundation and excavations. The declaration shall require that suchinsurance shall provide for payment for losses thereunder by the insurer tothe association, or its nominee, as insurance trustee for the benefit ofeach owner, the holder of each first mortgage of record thereon, and theassociation as their interests appear and as set forth in the declaration.The declaration shall provide that the proceeds from insurance received bythe insurance trustee shall be used to repair, reconstruct or rebuild thetownhouse units damaged or destroyed by said fire or other casualty, unlessall townhouse unit owners and their first mortgagees agree in writing tonot repair, reconstruct or rebuild. The declaration may require the boardof directors of the association to obtain and maintain such insurance underone blanket fire and extended coverage policy providing such insurance forall owners and first mortgagees of townhouse units, as their interests mayappear pursuant to the declaration. In such event, the declaration mayprovide that the insurance premiums are common expenses to be paid as setforth in the declaration. In such event, each townhouse unit owner shall befurnished a memorandum of insurance coverage approved by the commissionerof insurance setting forth the essential coverages of the blanket policy.Provision for such blanket insurance shall be without prejudice to theright of each townhouse unit owner to insure his or her own townhouse unitunder a separate policy if benefits thereunder are payable to theassociation or its nominee as insurance trustee for the benefit of theassociation and all owners and their first mortgagees, as their interestsmay appear.

      History:   L. 1975, ch. 291, § 12; July 1.