(1) A qualified insurer may establish a monetary limit on the amount of the warranty. Any limit must not be less than:

     (a) For a unit, the lesser of (i) the original purchase price paid by the owner, or (ii) one hundred thousand dollars;

     (b) For common elements, the lesser of (i) the total original purchase price for all components of the multiunit building, or (ii) one hundred fifty thousand dollars times the number of units of the condominium.

     (2) When calculating the cost of warranty claims under the standard limits under a qualified warranty, a qualified insurer may include:

     (a) The cost of repairs;

     (b) The cost of any investigation, engineering, and design required for the repairs; and

     (c) The cost of supervision of repairs, including professional review, but excluding legal costs.

     (3) The minimum amounts in subsections (1) and (2) of this section shall be adjusted at the end of each calendar year after the effective date by an amount equal to the percentage change in the consumer price index for all urban consumers, all items, as published from time to time by the United States department of labor. The adjustment does not affect any qualified warranty issued before the adjustment date.

[2004 c 201 § 801.]