Pennsylvania HOA and condo insurance, where the statute sets an actual-cash-value floor below the lender standard. The 80 percent ACV minimum is not the same as replacement-cost warrantability

For condominiums, the Pennsylvania Uniform Condominium Act, at 68 Pa.C.S. Section 3312, requires the association to maintain property insurance on the common elements and units, exclusive of improvements and betterments installed in units, against all risks of direct physical loss commonly insured against, in a total amount, after application of deductibles, of not less than 80 percent of the actual cash value of the insured property, exclusive of land, excavations, foundations, and other items normally excluded from property policies. The act also requires comprehensive general liability insurance in an amount determined by the executive board but not less than any amount specified in the declaration.

For planned communities, the Uniform Planned Community Act carries a parallel provision at 68 Pa.C.S. Section 5312, applying the same 80 percent actual-cash-value floor to the common facilities and the general liability requirement to occurrences arising from them.

The key practitioner point is that the floor is stated as 80 percent of actual cash value, on two counts below the Fannie Mae Selling Guide 100 percent replacement-cost warrantability standard for a conventional loan. A Pennsylvania association can satisfy the statute and still fail a lender insurance review, so size the property program to full replacement cost and the lender bar, not the statutory minimum, and confirm the master policy is written on replacement cost rather than actual cash value.