North Carolina condominiums are regulated by the North Carolina General Statutes. Section 47C-3-113 addresses insurance requirements for condominiums.
The statute states:
Commencing not later than the time of the first conveyance of a unit to a person other than a declarant, the association shall maintain, to the extent available:
1. Property insurance on the common elements insuring against all risks of direct physical loss commonly insured against including fire and extended coverage perils. The total amount of insurance after application of any deductibles shall be not less than eighty percent (80%) of the replacement cost of the insured property at the time the insurance is purchased and at each renewal date, exclusive of land, excavations, foundations and other items normally excluded from property policies; and
2. Liability insurance in reasonable amounts, covering all occurrences commonly insured against death, bodily injury and property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.
In multi-story condominiums, the insurance the association is required to carry must also cover the individual units, but need not include improvements or betterments installed by unit owners.
The main insurance policy in no way affects the rights of individual unit owners to obtain their own insurance, so unit owners should consider purchasing their own insurance policies if they have made improvements to their units.