- I. PROPERTY COVERAGE:
- A. “Risk of Direct Physical Loss” coverage (subject to policy limitations) The Association is protected by Comprehensive Property coverage, subject to the standard exclusions such as, but not limited to, earthquake, flood, water seepage, backup of sewers, war, pollution, normal wear and tear and vermin.
- B. Replacement Cost restores Association Insured Property to the builder’s original grade in the event of a covered loss.
- C. A deductible applies to all property losses. This deductible varies per Association, ranging from $1,000 to $5,000. The deductible for water related losses, including ice damming, may be assessed on a per unit, per occurrence basis. *NOTE: The actual amount of the water damage deductible will vary per association. Wind Deductibles in Coastal Areas are usually 3%-5% of Total Insured Value.
- D. The Association’s insurance policy covers the homes with the builder’s standard grade basic features. This includes such items as bathroom fixtures, kitchen cabinets, built-in appliances, basic carpeting, partitioned walls, repairing sheetrock and a sealant coat of paint. You are responsible to insure any decorations, additions, alterations, upgrades or options (such as wallpaper, lighting, painting and finished basements) that are made by you, or a prior owner.
- II. LIABILITY COVERAGE:
This coverage protects the Association against bodily injury or property damage to others for which the Association becomes legally liable. It is recommended that homeowners purchase insurance to protect themselves from personal liability, as well as for the interior of their home.
- III. ADDITIONAL ASSOCIATION COVERAGES:
The Association may also be protected for Fidelity, Workers Compensation and Directors and Officers Liability. For more information concerning these coverages, please feel free to contact our office for details.
- IV. CLAIMS:
Any and all claims against the insurance policies held by the Association must first be reported to the Property Manager and/or Board of Trustees.
- V. HOMEOWNER’S NEED FOR PERSONAL INSURANCE:
