If a declaration or bylaws provide that the homeowners association has the sole authority to decide whether to repair or reconstruct a unit that has suffered damage or whether a unit must be repaired or reconstructed, the board of directors shall obtain blanket all-risk insurance for the full replacement cost of all structures in the planned community. Cost of the coverage shall be a common expense to the association.
If the declaration or bylaws contain a provision described in subsection (1) of this section, the declaration or bylaws also shall provide:
Requirements of or limitations on repairing or reconstructing damaged or destroyed property;
The time within which the repair or reconstruction must begin; and
The actions the board of directors must take if:
Damage or destruction is not repaired or replaced; or
Insurance proceeds exceed or fall short of the costs of repair or reconstruction. [1981 c.782 §52; 1999 c.677 §22; 2007 c.409 §15]