Alaska HOA and condo insurance, where the statute sets an actual-cash-value floor and earthquake sits outside it. The 100 percent actual-cash-value standard is not the same as replacement cost

The Alaska Uniform Common Interest Ownership Act, at Alaska Statutes Section 34.08.440, requires the association to maintain property insurance on the common elements, and in a planned community on property that must become common elements, against all risks of direct physical loss commonly insured against, in a total amount, after application of deductibles, of not less than 100 percent of the actual cash value of the insured property at the time the insurance is purchased and at each renewal date, exclusive of land, excavations, foundations, and other normally excluded items. The statute also requires liability insurance in an amount determined by the executive board but not less than the amount specified in the declaration. The requirement can be varied or waived only in a community where all of the units are restricted to nonresidential use.

The practitioner point is the valuation basis. The Alaska floor is written on actual cash value, which deducts depreciation, so even a program that satisfies the 100 percent standard can sit materially below the cost to actually rebuild. That gap matters because the Fannie Mae Selling Guide, at section B7-3, requires 100 percent replacement-cost coverage for a conventional loan to be warrantable. An Alaska association can meet the statute and still fail a lender insurance review, so size and write the property program to replacement cost and the lender bar, not to the actual-cash-value minimum.

Applicability is worth confirming as well. The Act applies in full to communities created on or after January 1, 1986, and reaches older communities only in part, so an association formed before that date should have its governing documents read against the specific sections that do apply rather than assumed to be fully inside the statute.