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201404665 16.1 Coverage of Insurance. To the extent of available, the insurance maintained under Section 15.0.1 of this Section, if determined by the Executive Board, may include the units or any portions of those units, but need not include improvements and betterments installed by unit owners or the personal property of unit owners. 16.2 Nonavailability of Insurance and Additional Insurance. If the insurance described in Section 15.0 of this Section is not reasonably available, the Association promptly shall cause notice of that fact to be hand - delivered or sent prepaid by United States Mail to all unit owners. The Association may carry any other insurance it deems appropriate to protect the Association or the unit owners. 16.3 Payment of Insurance Proceeds. Any loss covered by the property policy under Section 16.0.1 and 16.1 of this Article shall be adjusted with the Association, but the insurance proceeds for that loss are payable to any insurance trustee designated for that purpose, or otherwise, to the Association, and not to any mortgagee or beneficiary under a deed of trust. The insurance trustee or the Association shall hold any insurance proceeds in trust for unit owners and lien holders as their interest may appear. Subject to the provisions of Section 16.6 of this Article, the proceeds shall be disbursed first for the repair or restoration of the damaged property, and unit owners and lien holders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the property has been completely repaired or restored, or the condominium is terminated. 16.4 Insurance Obtained by Owners. An insurance policy issued to the Association does not prevent a unit owner from obtaining insurance for his own benefit. 16.5 Certificates of Insurance. An insurer that has issued an insurance policy under this Article shall issue certificates or memorandum of insurance to the Association and, on written request, to any unit owner, mortgagee or beneficiary under a deed of trust. The insurer issuing the policy shall not cancel or refuse to renew it until 30 days after notice of the proposed cancellation or no renewal has been mailed to the Association, each unit owner and each mortgagee or beneficiary under a deed of trust to which a certificate or memorandum of insurance has been issued at their respective last known addresses. 16.6 Repair and Replacement of Damaged or Destroyed Property. Any portion of the condominium for which insurance is required under this Section which is damaged or destroyed shall be repaired or replaced promptly by the Association unless any of the following apply: 16.6.1 The condominium is terminated. 16.6.2 Repair or replacement would be illegal under any state or local health or safety statute or ordinance. 16.6.3 80% of the unit owners, including every owner of a unit or allocated limited common element which will not be rebuilt, vote not to rebuild. 16.7 The Election Not to Repair or Replace. The cost of repair or replacement in excess of insurance proceeds and reserves is a common expense. If the entire condominium is not repaired or replaced: 16.7.1 The insurance proceeds attributable to the damaged common elements in proportion to their common element interest shall be used to restore the damaged area to a condition compatible with the remainder of the condominium. -16-