§ 26329 Insurance Requirements For Improvements

• •A contract can say what kind of insurance a group must have for a building or project.
• •The contract can also say how much insurance is needed and what it should cover.
• •If there's insurance money paid out, the contract can say how that money should be used.

A group of neighbors builds a community clubhouse together.

Their contract can say they must have fire insurance for the clubhouse. If the clubhouse burns down and they get insurance money, the contract can say they must use that money to rebuild it.