Is Your North Carolina Condominium In Compliance With The Law? Mandatory North Carolina Insurance Requirements

Feb 01, 2018 By Marie Laur Condominium Associations

North Carolina condominiums are regulated by the North Carolina General Statutes. Section 47C-3-113 addresses insurance requirements for condominiums.

The statute states:

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 available:

1. Property insurance on the common elements insuring against all risks of direct physical loss commonly insured against including fire and extended coverage perils. The total amount of insurance after application of any deductibles shall be not less than eighty percent (80%) of the replacement cost 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 in reasonable amounts, covering all occurrences commonly insured against death, bodily injury and property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.

In multi-story condominiums, the insurance the association is required to carry must also cover the individual units, but need not include improvements or betterments installed by unit owners.

The main insurance policy in no way affects the rights of individual unit owners to obtain their own insurance, so unit owners should consider purchasing their own insurance policies if they have made improvements to their units.

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Founded in 1985, our law firm continues to be dedicated to representing insurance policyholders throughout the United States. Collectively, our lawyers are licensed to practice in 25 states. In fact, many of Merlin Law Group’s attorneys worked for the insurance industry before joining the firm, so they bring a strong understanding of insurance company practices. Anyone can file a claim, but it takes experience, knowledge, and savvy to achieve a truly successful outcome. As The Policyholder’s Advocate®, Merlin Law Group aims to drive positive change within the insurance sector by obtaining justice for our clients and educating policyholders on how to navigate insurer bad faith tactics.

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