Montana HOA and condo insurance, where the statute sets no property floor and the lender bar does the work. The Unit Ownership Act leaves the amount to the governing documents, so warrantability becomes the real standard

Montana condominiums are governed by the Unit Ownership Act, Montana Code Annotated Title 70, Chapter 23, an older-generation condominium statute rather than the Uniform Common Interest Ownership Act that many states adopted. Its insurance provision, MCA 70-23-612, directs the manager, as trustee for the unit owners, to insure the building against loss or damage by fire and other hazards if required by the declaration, by the bylaws, or by a majority of the unit owners, with the premiums treated as a common expense and without prejudice to each owner insuring the owner's own unit. It sets no specific statutory percentage, no replacement-cost standard, and no fidelity requirement.

That absence is the key practitioner point. Because the statute names no floor, there is no 80 percent or full-replacement-cost minimum to fall back on, so the effective standard is whatever the declaration requires and, in practice, whatever a conventional lender will accept. The Fannie Mae Selling Guide requires insurance to the full replacement cost of the improvements for a condo project to be warrantable, so a Montana association should size the master property program to that lender bar and the governing documents, not to a statutory number, because there is none.

On governance, Montana associations are typically organized as nonprofit corporations under Title 35, Chapter 2, and MCA 27-1-732 provides immunity for the officers, directors, and volunteers of a nonprofit corporation acting within the scope of their official capacity, subject to the statute's conditions. That immunity does not remove the association's own exposure or the cost of defending a claim, which keeps adequate D&O coverage a live concern for volunteer boards rather than a formality.