RTA · Condominium Property Act
47 Insurance Insurance
(a) where a building is divided into units, shall place and
maintain insurance on the units, other than improvements
made to the units by the owners, and the common property
against loss resulting from destruction or damage caused by
any peril prescribed by or otherwise required by the
regulations to be insured against,
(b) where a parcel is divided into bare land units, shall place
and maintain insurance on the common property against loss
resulting from destruction or damage caused by any peril
prescribed by or otherwise required by the regulations to be
insured against,
RSA 2000
(c) shall, if required to do so by bylaw, place and maintain
insurance on the improvements made to the units by the
owners against loss resulting from destruction or damage
caused by any peril prescribed by or otherwise required by
the regulations to be insured against, and
(d) may place and maintain insurance on the units and the
common property, or either of them, against additional
perils other than those required to be insured against under
clauses (a), (b) and (c),
and for that purpose the corporation has an insurable interest in the
units and the common property.
(2) Notwithstanding subsection (1)(b), a corporation is not
required to place and maintain insurance against perils to which the
common property is not subject.
(3) In complying with subsection (1), the corporation must place
and maintain insurance for replacement cost value that provides
that if
(a) the insured property is destroyed or damaged, and
(b) that property is replaced or repaired,
no deduction shall be made from the settlement for depreciation to
the property.
(4) If a corporation places insurance under subsection (1)(d), it
may continue that insurance unless it is prohibited from doing so
by a resolution passed at a properly convened meeting of the
corporation.
(5) Any payment by an insurer under a policy of insurance for the
destruction of or damage to a unit or the common property must,
notwithstanding the terms of the policy,
(a) be paid to the insurance trustee designated in the bylaws or,
if the bylaws do not designate an insurance trustee, to the
corporation, and
(b) be used forthwith, subject to sections 59 and 60, for the
replacement or repair of the insured property that was
destroyed or damaged.
(6) Notwithstanding the Insurance Act or any policy of insurance,
if insurance is placed by a corporation and an owner against the
loss resulting from destruction of or damage to the units or the
common property,
RSA 2000
(a) the insurance placed by the co rporation is deemed to be first
loss insurance, and
(b) the insurance placed by the ow ner of a unit in respect of the
same property that is insured by the corporation is deemed
to be excess insurance.
(7) In addition to placing and maintaining insurance under
subsection (1), a corporation shall place and maintain insurance
against the following:
(a) any liability incurred by a me mber of the board or an officer
of the corporation arising out of any action or omission of
the member or officer with respect to carrying out the
functions and duties of a member or officer except as a
result of a failure to comply with section 28(2);
(b) any liability incurred by the corporation arising out of any
action or omission of a member of the board or an officer of
the corporation with respect to carrying out the functions
and duties of a member or officer;
(c) any liability incurred by the corporation arising out of a
breach of duty as the occupier of the common property;
(d) any liability incurred by the corporation arising out of the
ownership, use or operation of any machinery, equipment,
pressure vessels and vehicles.
RSA 2000 cC-22 s47;2014 c10 s37;2024 c20 s1(25)