57-8a-404. Other and additional insurance -- Limit on effect of lot owner act or omission -- Insurer's subrogation waiver -- Inconsistent provisions

(1) (a) The declaration or bylaws may require the association to carry other types of insurance in addition to those described in Section 57-8a-403.
      (b) In addition to any type of insurance coverage or limit of coverage provided in the declaration or bylaws and subject to the requirements of this , an association may, as the board considers appropriate, obtain:
            (i) an additional type of insurance than otherwise required; or
            (ii) a policy with greater coverage than otherwise required.

(2) Unless a lot owner is acting within the scope of the lot owner's authority on behalf of an association, a lot owner's act or omission may not:
      (a) void a property insurance policy under Subsection 57-8a-403(1)(a) or a liability insurance policy under Subsection 57-8a-403(1)(b); or
      (b) be a condition to recovery under a policy.

(3) An insurer under a property insurance policy or liability insurance policy obtained by an association under this part waives its right to subrogation under the policy against:
      (a) any person residing with a lot owner, if the lot owner resides on the lot; and
      (b) the lot owner.

(4) (a) An insurance policy issued to an association may not be inconsistent with any provision of this part.
      (b) A provision of a governing document that is contrary to a provision of this part has no effect.
      (c) Neither the governing documents nor a property insurance or liability insurance policy issued to an association may prevent a lot owner from obtaining insurance for the lot owner's own benefit. 


Enacted 2011, ch. 355.  Amended 2013, Ch 152, eff. May 14, 2013.