Casualty Insurance. Commencing not later than the time of the first conveyance of a Unit to a person other than the Declarant, the Association shall maintain, to the extent reasonably available, property insurance on the Common Facilities insuring against fire and extended coverage perils and all other perils customarily covered by standard extended coverage endorsements in such amount as the Association may determine. The Association may also insure against any other property, whether real or personal, owned by the Association, against the loss or damage by fire and such other hazards as the Association may deem desirable, with the Association as the owner and beneficiary of such insurance.
The insurance coverage with respect to the Common Facilities shall be written in the name of, and the proceeds thereof shall be payable to, the Association. The insurance proceeds shall be used by the Association for the repair or replacement of the property for which the insurance was carried. Premiums for all insurance carried by the Association are Common Expenses included in the annual assessment made by the Association. In the event of damage to or destruction of any part of the Common Facilities, the Association shall repair or replace the same from the insurance proceeds available. The Executive Board may determine the appropriate deductible applicable to such policy. If such insurance proceeds are insufficient to cover the costs of repair or replacement of the property damaged or destroyed, the Association may levy a Special Assessment against all Unit Owners to cover the additional costs of repair or replacement not covered by the insurance proceeds. Section 10.2 Liability Insurance to be Carried by Association. Commencing not later than the time of the first conveyance of a Unit to a person other than the Declarant, the Association shall maintain, to the extent determined by the Association, but in no event less than $1,000,000 per occurrence, comprehensive general liability insurance coverage on all Common Facilities of the Property covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the Common Facilities. Liability insurance shall include medical payments insurance.
Additional Endorsements. All policies obtained pursuant to the provisions of this subsection shall:
(i) provide that the Association or its authorized representative shall be the sole adjuster of any losses;
(ii) contain waivers of all rights of subrogation;
(iii) provide that the coverage afforded to any insureds shall not be affected by the acts or omissions of any one or more other insureds; and
(iv) provide that such policy shall not be cancelled or modified without thirty (30) days’ prior written notice to all whose interests are covered thereby.
Each policy shall designate that insurance proceeds for the loss shall be payable to the Association and not to any Permitted Mortgagee to be held in trust for Unit Owners and their first mortgage holders as their interests may appear, and shall otherwise comply with the provisions of Section 5312 of the Act. The name of the insured under each policy required pursuant to this Article X shall be stated in form and substance similar to the following:
“Springfield Manor Community Association, for the use and benefit of the individual owners, or their authorized representatives, of the Units contained in the Springfield Manor Planned Community.”
Other Insurance. The Association shall maintain workers’ compensation insurance and employer’s liability as required by law for any employees of the Association. The Association shall maintain directors and officers liability insurance, to the extent reasonably available.
Fidelity Insurance. Unless the funds of the Association are handled by a professional property manager, the Association shall maintain blanket fidelity insurance for anyone who either handles or is responsible for funds held by or administered by the Unit Owners Association, whether or not said individual has received compensation for their services. The Association fidelity insurance shall name the Association as the obligee and the premium shall be paid as a Common Expense by the Association. Any management agent that handles funds for the Association shall be covered by its own fidelity insurance which shall provide the same coverages as required of the Association. The fidelity insurance obtained shall cover the maximum funds that will be in custody of the Association or its management agent at any time while the fidelity insurance is enforced. In addition, the fidelity insurance coverage shall at least equal the sum of three (3) months assessment on all Units in the Community, plus the Associations reserved fund. Said fidelity insurance shall include a provision requiring thirty (30) days written notice to the Association or to each holder of a mortgage on an individual Unit in the Community before the fidelity insurance can be canceled or substantially modified for any reason. Fidelity insurance may be provided by the professional property manager engaged by the Association to manage the Community.
Waiver and Release. Subject to the provisions of this Article X, each Unit Owner and the Executive Board hereby waives and releases any and all claims which he or it may have against any other Unit Owner, the Association, the Executive Board and members thereof, the Declarant and its respective employees and agents, for damage to the Common Facilities, the Units or to any personal property located in the Units or Common Facilities, caused by fire or other casualty or any act or omission of any such party to the extent that such damage is covered by fire or other form of hazard insurance. Such release or waiver shall be valid only if such release or waiver does not affect the right of the insured under the applicable insurance policy to recover thereunder. In no event shall insurance obtained and maintained by the Association and by individual Unit Owners be the subject of any action for contribution.
Insurance Maintained by Unit Owners. Each Unit Owner will be responsible for the purchase and payment of insurance to protect on a so-called “all risk” basis of such Unit Owner’s Unit, any improvement made to such Unit Owner’s Lot, own personal property, and all personal liability not provided for above. Unit Owners may also obtain insurance coverage for the deductible carried by the Association.
No Unit Owner shall do or permit any act which would void or impair the coverage afforded by any policies held by the Association or would result in an increase in the premium therefore; and any Unit Owner so doing or permitting any such act shall be liable to the Association for any such increase which shall be assessable as a Limited Common Expense exclusively against such Unit Owner pursuant to the assessment provisions of this Declaration.