J.C. from North Carolina writes:
Dear Mister Condo,
So, if the COA isn’t named insured, and therefore can’t collect on a policy in the event of a loss, can they still force the detached condo owner to rebuild after a total loss to the single-family detached structure?
Mister Condo replies:
J.C., I am not an attorney nor am I an expert in North Carolina common interest community law so please accept my advice as friendly and not legal. I expect that your best answer will come from an attorney who specializes in common interest real estate law in your state. I will say that your governing documents would be the first place I would look to see what responsibilities the individual unit owners have with respect to the COA. It is quite possible that the association has the right to require that any damaged home be restored to its original condition as part of the covenant for being in the association. If so, they likely have every right to enforce the rebuilding of a fire-damaged home within the COA. Even though they may not be named as insured, they may have other legal rights to pursue an owner who does not rebuild after a fire, including placing a lien on the property and even foreclosing.
My advice is for you to speak to an attorney who can give you full legal advice in this matter. All the best!