Real Property Development

ORS 94.676
Insurance deductible for certain planned communities


If the declaration or bylaws of a planned community created under ORS 94.550 (Definitions for ORS 94.550 to 94.783) to 94.783 (When certain administrative provisions apply) before September 27, 2007, or a planned community subject to ORS 94.572 (Applicability of certain provisions of ORS 94.550 to 94.783 to Class I or Class II planned communities) do not assign the responsibility for payment of the amount of the deductible in an association insurance policy, the board of directors of the homeowners association may adopt a resolution that assigns the responsibility for payment of the amount of the deductible. The resolution must include, but need not be limited to:


The circumstances under which the deductible will be charged against:


An owner or the owners affected by a loss; or


All owners;


The allocation of the deductible charged under paragraph (a) of this subsection; and


If an owner and the association have duplicate insurance coverage, the insurance policy that is primary, unless otherwise provided in the declaration or bylaws.


If the board of directors adopts a resolution as described in subsection (1) of this section, the resolution may require that an owner, in addition to any other insurance required by the declaration or bylaws, obtain and maintain:


An insurance policy that insures the owner’s lot for not less than the amount of the deductible in the association’s insurance policy for which the owner may be responsible and that insures the owner’s personal property for any loss or damage; and


Comprehensive liability insurance that includes, but is not limited to, coverage for negligent acts of owners and tenants, guests of owners and tenants and occupants of other lots for damage to the common property, to other lots and to the personal property of other persons that is located on other lots or the common property.


Unless otherwise provided in the declaration or bylaws, the board of directors may adopt a resolution that:


Prescribes a procedure for processing insurance claims. The procedure may require that all claims against the association’s insurance policy be processed through and coordinated by the board of directors or the managing agent, if authorized by the board.


Assigns the responsibility for payment of charges for handling claims, including any charges by a managing agent.


Not later than 10 days after adoption of a resolution under subsection (1) or (3) of this section, the board of directors shall ensure that a copy of the resolution and a notice described in subsection (5) of this section are:


Delivered to each lot; or


Mailed to the mailing address of each owner or to the mailing address designated in writing by the owner.


The notice required under subsection (4) of this section shall:


Advise each owner to contact an insurance agent to determine the effect of the resolution on the owner’s individual insurance coverage; and


Be in a form and style reasonably calculated to inform the owner of the importance of the notice.


Failure to provide a copy of a resolution or a notice required under this section does not affect the responsibility of an owner to comply with a resolution adopted under this section. [2007 c.409 §3]


Last accessed
Jun. 26, 2021