Nevada § 116.31135 - Insurance: Repair or replacement of damaged or destroyed portion of community

§ 116.31135. Insurance: Repair or replacement of damaged or destroyed portion of community

1. Any portion of the common-interest community for which insurance is required under NRS 116.3113 which is damaged or destroyed must be repaired or replaced promptly by the association

unless: (a) The common-interest community is terminated, in which case NRS 116.2118 , 116.21183 and 116.21185 apply; (b) Repair or replacement would be illegal under any state or local statute or ordinance

governing health or safety; or (c) Eighty percent of the units' owners, including every owner of a unit or assigned

limited common element that will not be rebuilt, vote not to rebuild. 2. The cost of repair or replacement in excess of insurance proceeds, deductibles

and reserves is a common expense. If the entire common-interest community is not repaired or replaced: (a) The insurance proceeds attributable to the damaged common elements must be used

to restore the damaged area to a condition compatible with the remainder of the common-interest

community; and (b) Except to the extent that other persons will be distributees: (1) The insurance proceeds attributable to units and limited common elements that

are not rebuilt must be distributed to the owners of those units and the owners of

the units to which those limited common elements were allocated, or to lienholders,

as their interests may appear; and (2) The remainder of the proceeds must be distributed to all the units' owners or

lienholders, as their interests may appear, as follows: (I) In a condominium, in proportion to the interests of all the units in the common

elements; and (II) In a cooperative or planned community, in proportion to the liabilities of all

the units for common expenses. 3. If the units' owners vote not to rebuild any unit, that unit's allocated interests

are automatically reallocated upon the vote as if the unit had been condemned under

subsection 1 of NRS 116.1107 , and the association promptly shall prepare, execute and record an amendment to the

declaration reflecting the reallocations.