Tennessee has two condominium laws. The Tennessee Condominium Act of 2008 governs condos created after January 1, 2009, and includes a detailed insurance section, § 66-27-413. Older condos, including many built in Gatlinburg, Pigeon Forge, Knoxville, and Nashville before 2009, may still run under Part 1 of Title 66, Chapter 27, the Horizontal Property Act from 1963. Its insurance rules are much shorter, and that matters for HO-6 owners.
| Question | Condo created after Jan. 1, 2009 | Condo created before Jan. 1, 2009 |
|---|---|---|
| Main law | 2008 Condominium Act (Parts 2-5) | Horizontal Property Act (Part 1), plus listed 2008 Act sections |
| Building insurance | § 66-27-413 (see link below) | Co-owners may insure the building by majority resolution (§ 66-27-117) |
| After a disaster | Governed by the 2008 Act and documents | Proceeds applied to rebuild, unless the whole or more than two-thirds is destroyed (§ 66-27-118) |
| Uninsured or short costs | Governed by the 2008 Act and documents | Paid by directly affected co-owners in proportion to unit value, or per bylaws (§ 66-27-119) |
| Switching laws | Not applicable | May elect the 2008 Act by amending and restating documents |
Sources: Tennessee Code §§ 66-27-202, 66-27-117, 66-27-118, 66-27-119.
Which law applies to your building?
Section 66-27-202 says the 2008 Act applies to all condominiums created in Tennessee after January 1, 2009, and Part 1 does not apply to those newer condos. For pre-2009 condos, only a specific list of 2008 Act sections applies, and only for events after January 1, 2009. The insurance section, § 66-27-413, is not on that list. With one exception, those listed sections also do not supersede existing provisions of an older condo's master deed, declaration, or bylaws.
A pre-2009 condo can elect the 2008 Act in its entirety by amending and restating its master deed, bylaws, and plats. Ask your association whether that has happened. The recorded master deed shows the creation date.
For the 2008 Act's master policy rules, see Tennessee’s condo law sets an 80% master-policy floor, and your HO-6 still has to fill the gaps.
Building insurance by majority vote
Section 66-27-117 says the co-owners may, upon resolution of a majority, insure the building against risks, without prejudice to each co-owner's right to insure their own apartment on their own account. The statute uses "may." The bylaws and master deed usually say more, so read them alongside the master policy declarations.
Rebuilding after a fire or disaster
Under § 66-27-118, insurance proceeds are applied to reconstruct the building. Reconstruction is not compulsory where the damage comprises the whole or more than two-thirds of the building. In that case, unless the co-owners unanimously agree otherwise, the proceeds go pro rata to the co-owners under the bylaws, or under a three-fourths decision of the co-owners if the bylaws are silent. How proceeds are used under newer condos is covered here: After a Tennessee condo loss, the master policy claim is adjusted with the association, and the money must go to repairs first.
When insurance falls short
Section 66-27-119 says that where the building is not insured, or the insurance is insufficient, the new building costs are paid by the co-owners directly affected by the damage, in proportion to the value of their apartments or as the bylaws provide. If some owners in the minority refuse to pay, the majority may proceed with reconstruction at the expense of all co-owners benefited. For an HO-6 owner, that makes loss assessment coverage and the association's assessment process worth a close look: Tennessee condo law lets your association bill you for uninsured damage and put a lien on your unit if you do not pay.
Questions for an HO-6 owner in an older condo
- When was the condominium created, and has it elected the 2008 Act?
- Does the association carry a master policy, and what does it cover inside units?
- What do the bylaws say about rebuilding and sharing uninsured costs?
- Does my HO-6 policy include loss assessment coverage, and how much?
- Are my upgrades covered by my policy or the master policy? See Tennessee condo law says your HO-6 has to cover the upgrades the master policy can skip.
Mountain rental condos have their own wrinkles: Pigeon Forge Condo Insurance: Where Your HO-6 Policy Starts and the Master Policy Stops
This article is informational only. It summarizes Tennessee statutes and is not legal advice. It does not promise coverage or eligibility; your condo documents, the master policy, and your HO-6 policy control.
Related reading from All Seasons
- Tennessee’s condo law sets an 80% master-policy floor, and your HO-6 still has to fill the gaps.
- After a Tennessee condo loss, the master policy claim is adjusted with the association, and the money must go to repairs first.
- Tennessee condo law lets your association bill you for uninsured damage and put a lien on your unit if you do not pay.
- Tennessee condo law says your HO-6 has to cover the upgrades the master policy can skip.
- Pigeon Forge Condo Insurance: Where Your HO-6 Policy Starts and the Master Policy Stops
- Starting Jan. 1, 2027, Tennessee HOAs that collect assessments must carry a fidelity bond.
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
Which Tennessee condo law applies to my building?
The 2008 Condominium Act applies to condos created after January 1, 2009. Older condos may still be governed by the Horizontal Property Act in Part 1, plus certain listed 2008 Act sections.
Does the 2008 Act's insurance section apply to pre-2009 condos?
Section 66-27-413 is not among the 2008 Act sections that § 66-27-202 lists as applying to condos created before January 1, 2009.
Must a pre-2009 condo association insure the building?
Section 66-27-117 says co-owners may insure the building by majority resolution. Your master deed and bylaws may add requirements.
Can I insure my own unit in an older condo?
Yes. Section 66-27-117 preserves each co-owner's right to insure their own apartment on their own account.
Must the building be rebuilt after a disaster?
Proceeds are applied to rebuild, but reconstruction is not compulsory when the whole or more than two-thirds of the building is destroyed.
Who pays if the condo's insurance is not enough?
Under § 66-27-119, the co-owners directly affected by the damage pay the shortfall in proportion to their apartment values, or as the bylaws provide.
Can an older condo switch to the 2008 Act?
Yes. A condo existing before January 1, 2009, may elect the 2008 Act in its entirety by amending and restating its master deed, bylaws, and plats.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
Source links
- Justia: Tennessee Code § 66-27-202 — Applicability (Tennessee Condominium Act of 2008)
- Justia: Tennessee Code § 66-27-117 — Building insurance (Horizontal Property)
- Justia: Tennessee Code § 66-27-118 — Reconstruction of damaged building
- Justia: Tennessee Code § 66-27-119 — Costs of reconstruction
- Get a Quote — All Seasons Insurance Group
