Greetings From Arkansas

Continuing my state-by-state review of mandatory condominium insurance requirements, this post will look at Arkansas—The Natural State.

The Horizontal Property Act under the Arkansas Code discusses insurance as it relates to real property. Section 18-13-117 states:

The co-owners may, upon resolution of a majority, insure the building against risk, without prejudice to the right of each co-owner to insure his or her apartment on his or her own account and for his or her own benefit.

Interestingly, unlike many other states, Arkansas does not explicitly require that condominium associations maintain property or liability insurance for the building. Instead, the Code states that an association may obtain coverage.

The Code does, however, specifically state that any insurance obtained must not interfere with the rights of unit owners to obtain their own insurance.

Those looking to purchase a condominium unit in Arkansas should be sure to inquire whether the association has obtained a master insurance policy and what is covered under the policy. The unit owner or potential unit owner should then use that information to determine whether or not to obtain his or her own insurance to protect the property in the event of a loss.