General requirements The damage policy for a building must be with an approved insurer, be in the name of the owners corporation, and any other person required to insure under section 160 and provide for the following—
the building is to be insured for at least the amount determined in accordance with the regulations,
if the building is destroyed, the building is to be rebuilt or replaced so that the condition of every part of the rebuilt or replacement building is not worse or less extensive than that part when new,
if the building is damaged but not destroyed, the damaged part of the building is to be repaired or restored so that the condition of the repaired or restored part is not worse or less extensive than that part when new,
expenses incurred in removing debris are payable,
the remuneration of architects and other persons whose services are necessary as an incident to the rebuilding, replacement, repair or restoration is payable.
Limited sum liability Instead of providing for work and payments being made if a building is destroyed or damaged, the damage policy may limit the liability of the insurer in that event to an amount specified in the policy. The amount must not be less than an amount calculated in accordance with the regulations.
Parts of building to be covered The parts of a building to be covered by a damage policy include the following—
owners’ improvements and owners’ fixtures forming part of the building,
a building consisting entirely of common property,
anything prescribed by the regulations as forming part of a building for the purposes of this section.
Parts of building not required to be covered The following parts of a building are not required to be covered by a damage policy—
fixtures removable by a tenant at the expiration of a tenancy,
owners’ improvements and fixtures comprising paint, wallpaper and temporary wall, floor and ceiling coverings,
anything prescribed by the regulations as not forming part of a building for the purposes of this section.