Missouri Revised Statutes













Chapter 448

Condominium Property

←448.03-112

Section 448.3-113.1

448.03-114→

August 28, 2015

Insurance.

448.3-113. 1. Commencing not later than the time of the first

conveyance of a unit to a person other than a declarant, the association

shall maintain, to the extent reasonably available:



(1) Property insurance on the common elements, insuring against all risks

of direct physical loss commonly insured against or, in the case of a

conversion building, against fire and extended coverage perils. The total

amount of insurance after application of any deductibles shall be not less

than eighty percent of the actual cash value of the insured property at the

time the insurance is purchased and at each renewal date, exclusive of land,

excavations, foundations, and other items normally excluded from property

policies; and



(2) Liability insurance, including medical payments insurance, in an

amount determined by the executive board but not less than any amount

specified in the declaration, covering all occurrences commonly insured

against for death, bodily injury, and property damage arising out of or in

connection with the use, ownership, or maintenance of the common elements.



2. In the case of buildings containing units having horizontal

boundaries described in the declaration, the insurance maintained under

subdivision (1) of subsection 1 of this section, to the extent reasonably

available, shall include the units, but need not include improvements and

betterments installed by unit owners.



3. If the insurance described in subsections 1 and 2 of this section is

not reasonably available, the association shall promptly cause notice of that

fact to be hand-delivered or sent prepaid by United States mail to all unit

owners. The declaration may require the association to carry any other

insurance, and the association in any event may carry any other insurance it

deems appropriate to protect the association or the unit owners.



4. Insurance policies carried pursuant to subsection 1 of this section

shall provide that:



(1) Each unit owner is an insured person under the policy with respect to

liability arising out of his interest in the common elements or membership in

the association;



(2) The insurer waives its rights to subrogation under the policy against

any unit owner or members of his household;



(3) No act or omission by any unit owner, unless acting within the scope

of his authority on behalf of the association, will void the policy or be a

condition to recovery under the policy; and



(4) If, at the time of a loss under the policy, there is other insurance

in the name of a unit owner covering the same risk covered by the policy, the

association's policy provides primary insurance.



5. Any loss covered by the property policy under subdivision (1) of

subsection 1 of this section and under subsection 2 of this section shall be

adjusted with the association, but the insurance proceeds for that loss shall

be payable to any insurance trustee designated for that purpose, or otherwise

to the association, and not to any mortgagee or beneficiary under a deed of

trust. The insurance trustee or the association shall hold any insurance

proceeds in trust for unit owners and lienholders as their interests may

appear. Subject to the provisions of subsection 8 of this section, the

proceeds shall be disbursed first for the repair or restoration of the

damaged property, and unit owners and lienholders are not entitled to receive

payment of any portion of the proceeds unless there is a surplus of proceeds

after the property has been completely repaired or restored, or the

condominium is terminated.



6. An insurance policy issued to the association does not prevent a unit

owner from obtaining insurance for his own benefit.



7. An insurer that has issued an insurance policy under this section

shall issue certificates or memoranda of insurance to the association and,

upon written request, to any unit owner, mortgagee, or beneficiary under a

deed of trust. No insurer issuing the policy may cancel or refuse to renew

it until thirty days after notice of the proposed cancellation or nonrenewal

has been mailed to the association, each unit owner and each mortgagee or

beneficiary under a deed of trust to whom a certificate or memorandum of

insurance has been issued at their respective last known addresses.



8. Any portion of the condominium for which insurance is required under

this section which is damaged or destroyed shall be repaired or replaced

promptly by the association unless (1) the condominium is terminated, (2)

repair or replacement would be illegal under any state or local health or

safety statute or ordinance, or (3) eighty percent of the unit owners,

including every owner of a unit or assigned limited common element which will

not be rebuilt, vote not to rebuild. The cost of repair or replacement in

excess of insurance proceeds and reserves is a common expense. If the entire

condominium is not repaired or replaced, (1) the insurance proceeds

attributable to the damaged common elements shall be used to restore the

damaged area to a condition compatible with the remainder of the condominium,

(2) the insurance proceeds attributable to units and limited common elements

which are not rebuilt shall be distributed to the owners of those units and

the owners of the units to which those limited common elements were

allocated, and (3) the remainder of the proceeds shall be distributed to all

the unit owners or lienholders, as their interests may appear, in proportion

to the common element interests of all units. If the unit owners vote not to

rebuild any unit, that unit's allocated interests are automatically

reallocated upon the vote as if the unit had been condemned under subsection

1 of section 448.1-107, and the association shall promptly prepare, execute,

and record an amendment to the declaration reflecting the reallocations.

Notwithstanding the provisions of this subsection, section 448.2-118 governs

the distribution of insurance proceeds if the condominium is terminated.



9. The provisions of this section may be varied or waived in the case of

a condominium all of whose units are restricted to nonresidential use.



(L. 1983 H.B. 177)







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