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1. Master Palicy of Insurance Carried by Association. The Association shall maintain <br /> and keep in force a master policy or policies of insurance in accordance with the <br /> requirements set forth in Section S15B.3-113 of the Act and issued by a reputable ' <br /> insurance company or companies authorized to do business in the State of Minnesota, <br /> which policy or policies shall further provide coverage as follows: <br /> a. Fire and standard extended coverage insurance in an amount equal to 100%of the <br /> insurable "replacement cost"of the Condominium exclusive of land, foundation, <br /> excavation and other items normally excluded from coverage(but including all <br /> building service equipment and machinery), except such perils as may be <br /> separately insured or are uninsurable. The policy or policies shall cover personal <br /> property owned in common by all of the unit owners or by the Association. The <br /> policy or polices shall contain an "Inflation Guard" endorsement,or an agreed <br /> amount clause, or determinable cash adjustment clause, or similar clause to permit <br /> a cash settlement covering specified value in the event of destruction and a <br /> decision not to rebuild. Such insurance shall afford protection against loss or <br /> damage by fire and other hazards covered by the standard extended coverage <br /> endorsement for project similar in construction, location and use to the <br /> Condominium; together with the following additional coverage if required by the <br /> requirements of the Federal Home Loan Mortgage Corporation("FHLMC")the <br /> Federal National Mortgage Corporation"(FNMA"}the Federal Housing <br /> Administration("FHA") or the Veterans Administration("VA")in connection <br /> with mortgage loan commitments issued by any first mortgagees: <br /> i. If there is a steam boiler in any building the policy shall afford protection <br /> against boiler explosion in such building evidenced by a broad form of <br /> boiler and machinery endorsement, in the minimum amount of$50,000.00 <br /> per accident per location. <br /> ii. If any building is located in an area identified by the Secretary of Housing <br /> and Urban Development as an area having special flood hazards, a <br /> "blanket" policy of flood insurance on the Condominium shall be <br /> maintained in the amount of the aggregate of the outstanding principal <br /> balances of the mortgage loans on the units or the maximum limits of <br /> coverage available under the National Flood Insurance Act of 1968, as <br /> amended, whichever is less. <br /> iii. The policy shall cover sprinkler leakage,debris removal, cost of <br /> demolition, vandalism,malicious mischief, windstorm and water damage. <br /> iv. The policy shall cover demolition and contingent liability from operation <br /> of building laws endorsements,increased cost of construction, earthquake <br /> damage and other applicable hazards. <br /> v. The policy shall cover the Residential Units(including the f xtures and <br /> built-in appliances inside of them), and the common elements. In the event <br /> that the Association shall fail to pay currently the premiums due with <br /> respect to such insurance, then in such event any first mortgagee may <br /> make payment of such due premiums, and such payments so made by the <br />