Condo/Townhouse HOA Master Policy Not having Coverage

[Pesi S.]

Hello,

I own a townhouse unit which I am renting in NC. The HOA has informed the owners that the HOA master insurance policy will only cover the club house/swimming pool and the common public areas. It will no longer cover anything at all inside or anything on the building exterior like building framework, roof, gutters, etc. They want the owners to insure the inside and outside of the property for minimum $100K but they are not going to go and enforce that every owner does insures their property sufficiently. I wanted to know if

A. Is this legal for the HOA to do ?

B. What happens if I insure my property for 100K but my neighbors do only $25K or only the interiors of the unit. What would be the recourse if   god forbid there is damage to the building exterior ? 

C. If the price of the each townhome unit is in the range of $150K what is the right amount of coverage one should have ?

D. Is this type of arrangement a common one in condo/townhome societies or is this somewhat a exception against the normal. They charge around $125 per month for HOA fees.

Appreciate if anyone who has knowledge or experience with this type of situation can help me with this.

Thanks a lot.