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8F Consent 2021 0907
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8F Consent 2021 0907
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9/17/2021 9:29:38 AM
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9/2/2021 5:22:30 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Agenda
Document Date (6)
9/7/2021
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PERM
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Reso 2021-124 Final Map DR Horton Bay
(Approved)
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\City Clerk\City Council\Resolutions\2021
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<br /> <br />4810-5342-0509, v. 2 <br /> 53 <br /> <br />10.2.3 Copies of Policies. The Association shall have the right but not the obligation <br />to request copies of any insurance policy or certificate of such insurance which an Owner is required to <br />maintain pursuant to this Declaration, and in such case, the Owner shall deliver a copy to the Association <br />within fifteen (15) days upon request. All policies shall indicate they may not be canceled or modified <br />without thirty (30) days prior written notice to the Association, except that ten (10) days prior written notice <br />shall be required if the cancellation is for non-payment of premiums. The acceptance of a copy of an <br />insurance policy by the Association from an Owner shall not constitute a waiver of any of the insurance <br />requirements set forth herein. <br />10.2.4 General Policy Requirements. All insurance policies the Owners are required <br />to obtain pursuant to this Article shall be placed and maintained with companies rated at least “B/VII” by <br />A.M. Best Company, Inc. in Best’s Insurance Reports and otherwise reasonably satisfactory to the <br />Association. The coverage types and amounts required for such insurance may be satisfied by any <br />combination of primary and excess policies that collectively serve to satisfy the requirements of this Article, <br />including without limitation condominium Owners’ policy forms that provide both property damage and <br />liability insurance coverage under one policy. <br />10.3 Compliance With Insurance Requirements in Documents of Record. The Association <br />shall obtain insurance as required by any document of record affecting the Association Property. Each <br />Owner shall obtain insurance as required by any document of record affecting such Owner’s Unit. <br />10.4 Review of Insurance. The Board shall review the adequacy of all insurance required by <br />this Declaration to be maintained by the Association and by the Owners at least once every year. The <br />review shall include a reasonable determination of the replacement cost of all Association Insured Property <br />without respect to depreciation. <br />10.5 Association’s Authority to Revise Insurance Requirements. Subject to any statutory <br />insurance requirements, the Board shall have the power and right to adjust and modify the insurance <br />requirements for Owners and the Association set forth herein to require coverage and protection that is <br />customarily carried by and reasonably available to prudent owners and associations of projects similar in <br />construction, location and use. If the Board elects to materially reduce the coverage required to be <br />maintained by the Association from the coverage required in this Article, the Board shall make all <br />reasonable efforts to notify the Owners and Mortgagees of the reduction in coverage and the reasons <br />therefor at least thirty (30) days prior to the effective date of the reduction. The Association and its directors <br />and officers and the Owners shall have no liability to each other or to any Mortgagee and shall not be in <br />breach of their obligations hereunder if, after a good faith effort, the Association or Owner is unable to obtain <br />one or more of the insurance coverages required hereunder to the extent the insurance is no longer <br />available, or, if available, the insurance can be obtained only at a cost that the Board, in its sole discretion, <br />determines is unreasonable under the circumstances, or in the case of insurance required to be maintained <br />by the Association, if the Owners fail to approve any Assessment increase needed to fund the insurance <br />premiums. <br />ARTICLE 11 <br />DESTRUCTION OF IMPROVEMENTS AND CONDEMNATION <br />11.1 Restoration Defined. As used in this Article, the term “restore” or “restoration” shall mean <br />repairing, rebuilding or reconstructing damaged Improvements to substantially the same condition and <br />appearance in which they existed prior to fire or other casualty damage. The Association shall have the <br />obligation to restore the Association Property in accordance with the provisions of this Article. <br />11.2 Restoration Proceeds for Association Property. <br />11.2.1 Sufficient Proceeds. The costs of restoration of the damaged Improvement <br />shall be paid first from any insurance proceeds paid to the Association under existing insurance policies. If <br />the insurance proceeds exceed the costs of restoration, the excess proceeds shall be paid into reserves <br />and held for the benefit of the Association. If the insurance proceeds are insufficient to restore the damaged <br />306
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