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<br /> <br />4810-5342-0509, v. 2 <br /> 52 <br /> <br />obligation to do so) obtain earthquake insurance from time to time, on those portions of the Community that <br />are to be insured by the Association, and if so obtained, the premiums for such insurance may be included <br />in the Assessments. All parties acknowledge that earthquake insurance is typically very expensive and if <br />purchased by the Association a material increase in Assessments may be required to cover the additional <br />cost of such insurance. <br />10.1.9 Compliance with Federal Regulations. Notwithstanding any other provisions <br />contained herein, the Association shall continuously maintain in effect such casualty, flood and liability <br />insurance and a fidelity bond meeting the minimum insurance and fidelity bond requirements established <br />by Federal Agencies, so long as any of the above is a Mortgagee or an Owner of a Unit, except to the <br />extent such coverage is not available or has been waived in writing by the Federal Agencies as applicable. <br />If the FNMA or FHLMC requirements conflict, the more stringent requirements shall be met. <br />10.2 Owners’ Insurance Obligations. Each Owner is strongly advised to seek the advice of a <br />qualified insurance consultant regarding: (i) the amount of property insurance the Owner should procure for <br />casualty losses to property not covered under the Association’s property insurance policy; and (ii) the <br />amount of personal liability insurance coverage the Owner should maintain, subject to the requirements of <br />Owners to obtain the insurance coverage set forth in this Section. <br />10.2.1 Property Insurance. <br />(a) Units. Each Owner shall obtain and maintain at its sole expense <br />property insurance for the risks covered by, and providing coverage as least as broad as, a current ISO <br />form residential condominium homeowners insurance policy or its equivalent, insuring: (i) all personal <br />property located within the Owner’s Unit or Exclusive Use Easement Areas including without limitation any <br />property of others under the care, custody, or control of Owner, except the Association’s property); and <br />(ii) any upgrades or Improvements which are not Association Insured Property and which are located within <br />the Unit or Exclusive Use Easement Areas (including landscaping Improvements) (collectively referred to <br />as the “Residential Owner’s Property”) for an amount equal to the maximum insurable replacement value <br />thereof, which shall include coverage for any Solar Energy System not otherwise covered under the terms <br />of any Solar Agreement between Owner and a Solar Company. <br />(b) Waiver of Claims and Subrogation. Each Owner waives all claims <br />against the Association for any damage to the real and personal property that such Owner is obligated <br />under this Declaration to insure (including without limitation any loss of use of such property), except that <br />an Owner may claim against the Association for property damage to the extent that the damage is caused <br />by the gross negligence or willful misconduct of the Association or its managing agent. Any property <br />insurance policy obtained by an Owner must contain a waiver of subrogation rights by the insurer consistent <br />with this Section; provided, however, that a failure or inability of an Owner to obtain such a waiver from an <br />insurer shall not defeat or impair the waivers between the Owners and the Association set forth herein. <br />The waivers of claims and subrogation set forth in this Subsection apply only in favor of the Association <br />and do not limit or waive, release or discharge any claims that an Owner (or its insurers) may have against <br />any third party, including without limitation any contractor, service provider, agent, other Owner, or Invitee; <br />provided, that such waivers shall also apply in favor of the Association’s managing agent if and to the extent <br />that the Association has similarly agreed in a written management agreement to a waiver of claims and <br />subrogation against such managing agent. <br />10.2.2 Liability Insurance. Each Owner shall, at such Owner’s sole cost and <br />expense maintain liability insurance providing coverage at least as broad as the current ISO commercial <br />general liability insurance form or its equivalent (including coverage for medical payments), insuring the <br />Owner against liability arising from the ownership, operation, maintenance and use of the Owner’s Unit and <br />Exclusive Use Easement Area by such Owner. Such liability insurance shall have limits of liability of not <br />less than Three Hundred Thousand Dollars ($ 300,000) per occurrence and Three Hundred Thousand <br />Dollars ($300,000) general aggregate <br />305