The Board of Directors had obtained insurance to protect the Unit Owners Association and to a certain limited extent, the unit owners as individuals, as provided in the Bylaws.

The building, including the units, is covered by fire and property damage insurance. The coverage is “all risk” and in an amount equal to full replacement cost of the building (except for not normally insured), subject to reasonable deductible limits. The coverage does not insure personal property belonging to a unit owner (furniture, decorations, belongings, etc.).

Appliances and fixtures initially installed by the Declarant in accordance with the plans and specifications are covered by the condominium insurance policy, but only if the damage occurs in a disaster.

Basically, the blanket condominium policy covers your unit as described in the original plans and specifications, before any upgrades. The policy does not include contents or “betterments and improvements”. Betterments and improvements mean those items which are fixed in nature such as wall finishes, fixtures, floor coverings, cabinets and appliances which are installed by a unit owner after settlement or as an upgrade from the original plans and specifications for the unit.

To complete your coverage, unit owners should purchase an Individual Property Owners Policy (HO-6). The HO-6 provides coverage for your personal property, personal liability and improvement you may have made to your unit. You are completely free to use any broker you wish. You may want to contact the insurance agent used by the condominium for more information about your insurance. Contents and betterments and improvements coverage is normally written on a depreciated rather than replacement cost basis. Antiques, precious jewelry and fine arts are not standard inclusions of the types of coverage we have been discussing. You may want to discuss those items directly with the insurance broker.

The Association and individual unit owners are insured against liability arising from ownership or use of common elements. This coverage does not insure an individual unit owner against liability arising from an accident or injury occurring within his unit or liability arising from the willful or negligent act or omission of the unit owner in either a unit or upon the common elements.

The Board of Directors also maintains required Worker’s Compensation insurance, fidelity coverage to protect the association’s finances and Directors’ and Officers Liability insurance.

NOTE: IT IS STRONGLY RECOMMENDED THAT ALL RESIDENTS OBTAIN, AT A MINIMUM, STANDARD HO-6 HOMEOWNER’S INSURANCE COVERAGE. OWNERS MAY USE THEIR OWN OR THE ASSOCIATION’S BROKER TO SECURE COVERAGE.

UNIT OWNERS/RESIDENTS SECURING THEIR OWN INSURANCE SHOULD REFER TO ARTICLE XII OF THE BYLAWS TO BE AWARE OF POSSIBLE CONFLICTS BETWEEN THEIR OWN POLICIES AND THE ASSOCIATION’S POLICIES OF CERTAIN PROVISIONS OF THE BYLAWS ARE NOT FOLLOWED.