Revised Laws of Saint Lucia (2021)

25.   Powers of unit owners to insure

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   (1)   Where a building is insured to its replacement value a unit owner may effect a policy of insurance in respect of any damage to his or her unit in a sum equal to the amount secured, at the date of any loss referred to in such policy, by any mortgages charged upon his or her unit, where any such policy of insurance is in force—

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      (a)     payment shall be made by the insurer under such policy to the mortgagees whose interests are noted thereon in order of their respective priorities, subject to the terms and conditions of the policy;

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      (b)     subject to the terms and conditions of such policy the insurer is liable to pay thereunder—

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         (i)     the value stated in such policy,

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         (ii)     the amount of the loss, or

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         (iii)     the amount sufficient at the date of the loss to discharge any mortgages charged upon the unit,

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   whichever is the least;

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      (c)     where the amount so paid by the insurer equals the amount necessary to discharge a mortgage charged upon the unit, the insurer shall be entitled to an assignment of that mortgage;

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      (d)     where the amount so paid by the insurer is less than the amount necessary to discharge a mortgage charged upon the unit the insurer shall be entitled to a sub-mortgage of such mortgage to secure the amount so paid on terms and conditions agreed upon as provided in subsection (3), failing agreement on the same terms and conditions as those contained in the mortgage made by the unit owner.

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   (2)   

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      (a)     Where a building is uninsured, or has been insured at less than its replacement value a unit owner may—

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         (i)     effect a policy of insurance in respect of any damage to his or her unit in a sum equal to the replacement value of his or her unit less a sum representing the amount to which his or her unit is insured under any policy of insurance effected on the buildings,

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         (ii)     despite any existing policies, effect a policy of insurance in respect of any damage to his or her unit in a sum equal to the amount secured at the date of any loss referred, to in such last-mentioned policy, by any mortgages charged upon his or her unit, and the provisions of subsection (1)(a), (1)(b), (1)(c) and (1)(d) shall apply in respect of any payment under such last mentioned policy;

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      (b)     for the purposes of this subsection the amount to which a unit is insured under a policy of insurance effected in respect of the building shall be determined by multiplying the value stated in such policy by the unit entitlement of the unit and dividing the product so obtained by the sum of the unit entitlement of all units.

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   (3)   For the purposes of subsection (1)(d) and subsection (2)(a)(ii) any insurer and any mortgagee or mortgagees may at any time, whether before or after a policy or insurance has been effected by a unit owner, agree upon the terms and conditions of the submortgage.

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   (4)   This section does not limit the right of a unit owner to insure against risks other than damage to his or her unit.

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   (5)   Any policy of insurance authorised by this section and taken out by a unit owner in respect of damage to his or her unit is not liable to be brought into contribution with any other policy of insurance save another policy authorised by this section and taken out in respect of damage to the same unit.

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   (6)   This section applies despite the provisions of any other law relating to insurance.