02-18-2025 Planning Commission Packet (2)

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19 9.2.2. To perform its maintenance obligations promptly and in such manner as not to damage the Property, nor unreasonably disturb or cause a hazard to persons occupying or otherwise using the Property. The Board may require that the Owners perform their maintenance obligations in accordance with reasonable standards established by the Board and in a manner consistent with the Declarant’s design plan for the common interest community. 9.2.3. To promptly pay or reimburse the Association for any costs incurred by the Association for the repair of any damage to the Common Elements, Limited Common Elements or other Units, caused by an Owner or Tenant, or their guest, or caused by any condition in the Unit or Limited Common Elements which the Owner or Tenant has allowed to exist. 9.2.4. If an Owner fails or refuses to perform the Owner’s duty to maintain, repair or replace, the Association shall have authority to undertake the necessary work and assess the Owner’s Unit for the cost thereof; provided that reasonable notice and an opportunity to sure the violation shall first be given to the Owner. SECTION 10 INSURANCE 10.1. Association Insurance. The Association shall obtain and maintain the following insurance relating to the Property: 10.1.1. The Association shall, at a minimum, maintain property insurance in broad form covering all risks of physical loss in an amount equal to one hundred percent of the insurable “replacement cost” of the Property, less deductibles; but excluding (i) land, footings, excavation and other items normally excluded from coverage, and (ii) items such as ceilings or wall finishing materials, floor coverings, plumbing, lighting and other interior fixtures, built-in equipment, business equipment, or any other improvement or betterment installed within the Units. The policy or policies shall also cover personal property owned by the Association. The policy or policies shall also contain “Inflation Guard” and “Agreed Amount” endorsements, if reasonably available. The Association may enter into an agreement with a Mortgagee or a guarantor, insurer or servicer of a mortgage, obligating the Association to keep other coverages or endorsements in effect. The Association may also enter into agreements among all Owners as to the allocation of insurance proceeds among their Units. 10.1.2. Commercial general liability insurance covering the use, operation and maintenance of the Common Elements, with minimum limits of one million dollars per occurrence, against claims for death, bodily injury and property damage, and such other risks as are customarily covered by such policies for projects similar in construction, location and use to the Property. The policy shall contain a “severability of interest” endorsement which shall preclude the insurer from denying the claim of an Owner or Tenant because of negligent acts of the Association or other Owners or Tenants. 10.1.3. Such other types and amounts or insurance as may be determined by the Board to be necessary or desirable, including but not limited to officers and directors’ liability insurance, workers’ compensation insurance, and insurance or fidelity bonds covering dishonest acts by those Persons having control or custody of the Association’s funds. 10.2. Cancellation: Notice of Loss. All policies or property insurance and comprehensive liability insurance maintained by the Association shall provide that the policies shall not be canceled or substantially modified, for any reason, without at least thirty days’ prior written notice to the Association, the insureds and all Mortgagees. 10.3. Conflicts with Act. In the event of a conflict between this Section 10 and the Act, this Section 10 shall control, it being the intention of Declarant that the Association and the Owners shall have authority and 67