Article 1074.1
When a loss occurs which falls under the coverage provided for by a property insurance contract entered into by the syndicate and the syndicate decides not to avail itself of the insurance, it shall with dispatch see that the damage caused to the insured property is repaired.
A syndicate that does not avail itself of insurance may not sue the following persons for the damages for which it would otherwise have been indemnified by the insurance:
1- a co-owner;
2- a person who is a member of a co-owner’s household;
3- a person in respect of whom the syndicate is required to enter into an insurance contract to cover the person’s liability.
NOTE:
IBC has developed an illustrated process featuring the options and recourses available to a syndicate under different situations [PDF].