Two sections in the Declarations in the POS of each
DVC resort, one called "Insurance" and one called "Reconstruction or Repair after Casualty or Eminent Domain" (Articles X and XI of the BWV declarations -- section numbers differ among the resorts), provide the likely answer. Under the insurance section, the association of each resort is required to have insurance to cover such casualties and coverage is supposed to provide a coverage amount equal to 100% of the replacement cost of both the resort's buildings and personal property in those buildings (such as room furniture and appliances), but the insurance may provide a deductible (the common practice when insuring large hotels and timeshare resorts).
Under the Repair and Reconstruction section, the association is required to act promptly to repair or, if needed, reconstruct the the portions of the resort damaged, and use the insurance to do so. If, for any reason, the insurance is insufficient to cover all repair or reconstruction costs, the association can charge a special assessment for the uninsured portions to all owners of the resort (usually the deductible portion). In doing repair or reconstruction, the objective is to return the property, including personal property in the rooms, to what existed before the casualty.
During the time of repair or reconstruction, and assuming portions of the resort remain open for use during that time, the owner/members may reserve open rooms at 11-months out, and the rule that limits total ownership interests from exceeding what it would take to reserve all rooms for a year is suspended during the time of reconstruction or repair.
If a reconstruction cannot actually be done, the resort can be voted on as ended and any insurance recovery is divided among the owners. That is unlikely to ever happen unless the casualty shutting down the resort occurs fairly close to the resort's expiration date and it cannot reasonably be reconstructed before that date.
