Rebuilding after a fire

Forgot to specify Texas Condo Association. Chapter 82 (TUCA) governs insurance for condo regimes no matter when they were built.

This occurred 3 years ago, and the unit where the owner had no insurance of their own has not been rebuilt, and opinions of various natures abound as to our responsibility in this, apparently including various attorneys, or it would be done by now.

I simply want to understand this for myself. I don't like puzzles I can't solve! I endeavor to know our bylaws and state laws inside out, and this is part of it for the prior incident and God Forbid, any future fire or other disaster.

Here are excerpts from TUCA, chapter 82 of the Texas State Property Code. I would very much like to know how to interpret this in any way other than,

1) The Association must maintain this coverage, and

2) that if the insurance proceeds are insufficient, any units that need repair/reconstruction have to be done at the association's expense unless 80% of owners vote not to.

"(b) If a building contains units having horizontal boundaries described in the declaration, the insurance maintained under Subsection (a)(1), to the extent reasonably available, must include the units, but need not include improvements and betterments installed by unit owners.

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Except as provided by this section, any portion of the condominium for which insurance is required that is damaged or destroyed shall be promptly repaired or replaced by the association unless the condominium is terminated, repair or replacement would be illegal under any state or local health or safety statute or ordinance, or at least 80 percent of the unit owners vote to not rebuild.

.....

Except as provided by this section, the cost of repair or replacement in excess of the insurance proceeds is a common expense, and the board may levy an assessment to pay the expenses in accordance with each owner's common expense liability."

https://statutes.capitol.texas.gov/Docs/PR/htm/PR.82.htm

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Our HOA it is required that the owner rebuild on the lot after destruction. The HOA does not pay for that. Just requires you to build back. As for interior coverage, that makes no sense for a master policy to have that. Unless it's in reference to something like a lobby area. That I can understand if the lobby caught on fire/destroyed can see the HOA insurance kicking in to cover interior damage. I don't see it if your individual unit does.

These are condos.

If these are condos then the responsible party to rebuild the unit would be the HOA. Look at the master policy of the HOA and then look at the homeowner policy.

Are these attached units?

Since I don't have a copy of your CCRs, not your Bylaws, and your master insurance policy, I can't tell you what should be done in your instance, as you refer to your units as apartments.

If you're on the Board, get in touch with your attorney, if not,, have the Board get in touch with the attorney or someone who can read and understand documents.

You're the boss.

I know what's supposed to be done, WHAT DO YOU think should be done?

If you mean this, this is my position with what I know. I came here to see if I am missing something that would mean I was incorrect.

I would review your CCRs and the insurance policy, that's all.

Why would you ignore the state statute?

Our HOA (small, single family, patio homes) requires the HOA be named as a co-pay on home insurance policies. This to ensure one does not take the money and run leaving a pile of rubble. Our covenants also call for replacement construction to begin within 90 days and the home to be identical to the one destroyed though we would allow construction of a different type, original model to be built.

Knock on wood, we never had a home destroyed.

I am never going to practice in Texas, so I don't care to be an expert in how you do things there. In California, different story. Many CCRs in California, will not allow two fire or hazard insurance polices on the same property. If there is a master policy covered by the HOA, the homeowner CANNOT have a duplicate policy. They should have, and in some instances, required to have a HO6 policy to cover the inside of a unit.

Let's say Sally leaves her stove on and her unit burns down. The HOA will rebuild under the master policy and charge Sally the deductible, which could be $25K or higher in some cases. Then the master policy will go after Sally for possible negligence and Sally could use her insurance to maybe recoup the deductible or maybe Sally has loss assessment insurance.

But in reality, pretty cut and dry.

Yip, Richard is right. Your individual policy pays for the master policy deductible (if you have the loss liability coverage) because only one insurance will pay for the repairs. Now the individual policy will pay for a new stove, couches, clothing etc. Anything insurance claims or activity by the HOA is completely public. Section 552 (Public Information) is the Texas law specifies what is public info. Basically speaking anything NOT directly related to homeowner finances or personal information is public. For example the HOA doesn't have to tell me John Doe's account balance in unit #50 but if I ask for all insurance costs and claims made by the HOA for the fire in John's unit that is public. Section 209.005 of the TPC gives people guidance on how to write the letters officially requesting public information.