§ 32-25-8-10 — Insurance; reconstruction of building

(a) In case of fire or any other casualty or
disaster, other than complete destruction of all buildings containing the
condominium units:
(1) the improvements shall be reconstructed; and
(2) the insurance proceeds shall be applied to reconstruct the
improvements.
(b) In the event of complete destruction of all of the buildings
containing condominium units:
(1) the buildings shall not be reconstructed, except as provided in
subdivision (2), and the insurance proceeds, if any, shall be
divided among the co-owners:
(A) in the percentage by which each owns an undivided interest
in the common areas and facilities; or
(B) proportionately according to the fair market value of each
condominium unit immediately before the casualty as compared
with the fair market value of all other condominium units;
as specified in the bylaws of the condominium; and
(2) the property shall be considered as to be removed from the
condominium under section 16 of this chapter, unless by a vote of
two-thirds (2/3) of all of the co-owners a decision is made to
rebuild the building.
(c) If a decision is made under subsection (b)(2) to rebuild the
building, the insurance proceeds shall be applied, and any excess of
construction costs over insurance proceeds shall be contributed as
provided in this section in the event of less than total destruction of the
buildings.
(d) A determination of total destruction of the buildings containing
condominium units shall be made by a vote of two-thirds (2/3) of all
co-owners at a special meeting of the association of co-owners called
for that purpose.
[Pre-2002 Recodification Citation: 32-1-6-19.]

Legislative History

As added by P.L.2-2002, SEC.10.