Our C, C, & Rs are from 1970 and have not been updated. The only reference to insurance is under point 12. Board of Management shall have the following rights and powers: “H. To insure, and keep insured, all buildings and improvements on the property, and the owners thereof, against loss from fire or other casualty, and to purchase same and such other insurance as the board may deem advisable. Such insurance may, at the discretion of the Board, be taken in the name of the Board for the benefit of all the unit owners, or in such other manner as the Board may deem advisable. In the event any of such insurance proceeds are insufficient to repair or replace loss or damage, to levy an additional assessment in proportionate amounts as to each unit to cover such deficiency. ”
Based on ARS 33-1253, do you see anything in that brief statement that would indicate the need for the master policy to be “Walls In”?

We each have an HO6 policy that covers the “Walls In”.

With the Insurance Industry dropping out of some markets and raising premiums 400+% in 2024 the cost of Master Policy insurance is breaking the bank and reserves of COAs in Sun City and putting a tremendous burden on people with fixed incomes.

There are attorneys praying on these associations and board members that do not understand the insurance laws and trying to get them to change C, C, and Rs to make condo owners responsible to insure the association’s property under HO3 policies. All I see with this is a big convoluted mess in the future with claims, who is responsible for what, mortgage companies, etc. Mostly, I see attorneys with dollar signs rolling in their eyelids using fear tactics to get associations to join up with them and change their documents.

To make matters worse, our board allowed two claims on the master policy for plumbing issues that are clearly the responsibility of the “unit” owner when taking into consideration the ARS regarding who is responsible for what in a condo. They did this in violation of the open meeting laws by not even addressing it in an open meeting. These two claims have made it impossible to get any other insurance co. to even give us a bid for insurance. We are hearing that American Family is dropping out of the Condo Master Policy industry which will leave many associations without insurance.

Our board refuses to explain where they are seeing the need to do a “walls in” policies based on the above stated verbiage. They want us to accept the fact that the attorney, Travis Law, stated it is so.

Can you shed any light on this mess?