Declaration 10 - Insurance

X INSURANCE

(1) By the Corporation

The Corporation shall be required to obtain and maintain, to the extent obtainable from the insurance industry, the following insurance, in one or more policies;

(a) Insurance against damage by fire with extended coverage, including those major perils as defined in the Act, and such other perils as the board may from time to time deem advisable, insuring:

(i) the property, excluding the units;

(ii) personal property owned by the Corporation but not including furnishings, furniture, or other personal property supplied or installed by the owners;

in an amount equal to the full replacement cost of such real and personal property, without deduction for depreciation which policy may be subject to a loss deductible clause.

(b) Insurance against damage by fire with extended coverage, including those major perils as defined in the Act, and such other perils as the board may from time to time deem advisable, insuring the units, but excluding any improvements and betterments made by or acquired by the owners thereof, in an amount equal to the full replacement cost of such units without deduction for depreciation.

Such policy or policies of insurance shall insure the interest of the Corporation and the owners from time to time, as their respective interest may appear, with mortgagee endorsements, which shall be subject to the provisions of this declaration and the Insurance Trust Agreement; and shall contain the following provisions:

(i) that loss shall be payable to the Insurance Trustee;

(ii) waivers of subrogation against the Corporation, its manager, agents, employees and servants and owners, and any member of the household or guests of any owner or occupant of a unit, except for arson and fraud;

(iii) that such policy or policies of insurance shall not be cancelled or substantially modified without at least sixty (60) days prior written notice to all parties whose interest appears thereon, and to the Insurance Trustee;

(iv) waivers of any defence based on co-insurance or of invalidity arising from the conduct or any act or omission or breach of a statutory condition of any insured, or mortgagee in possession;

(v) all policies of insurance shall provide that the same shall be primary insurance in respect of any other insurance carried by any owner;

(vi) a waiver of the Insurer's option to repair, rebuild or replace in the event that after damage the government of the property by the Act is terminated.

(c) Public liability and property damage insurance insuring the liability of the Corporation and the owners from time to time, with limits to be determined by the board, but in no case less than $1,000,000.00, and without right of subrogation as against the Corporation, its manager, agents, servants and employees and as against the owners, and any member of the household or guests of any owner or occupant of a unit;

(d) Boiler and machinery insurance to the extent required as the board may from time to time deem advisable.

(2) General Provisions

(a) Prior to obtaining any policy or policies of insurance under sub-clause (1) of this Clause X, or any renewal or renewals thereof, or at such other times as the board may deem advisable, the board shall obtain an appraisal from an independent qualified appraiser, of the full replacement cost of the property, for the purpose of determining the amount of insurance to be affected pursuant to sub-clause (1) of this Clause X and the cost of such appraisal shall be a common expense.

(b) The Corporation, its board, and its officers, shall have the exclusive right, on behalf of itself and as agents for the owners to adjust any loss and settle any claims with respect to all insurance placed by the Corporation, and to give such releases as are required, and any claimant, including the owner of a damaged unit, shall be bound by such adjustment. Provided, however, that the board may, in writing, authorize an owner to adjust any loss to his unit.

(c) No mortgage may be placed against any unit unless the mortgagee agrees to waive any contractual or statutory provisions giving the mortgagee the right to have the proceeds of any insurance policy or policies applied on account of the mortgagee and thereby prevent application of the proceeds of any insurance policy or policies towards the repair of the property pursuant to the provision of this declaration. This paragraph (c) shall be read without prejudice to the right of any mortgagee to exercise the right of an owner to vote or to consent, if the mortgage itself contains provision giving the mortgagee that right, and also to the right of any mortgagee to receive the proceeds of any insurance policy, if the property is not repaired.

(d) A certificate or memorandum of all insurance policies and endorsements thereto shall be issued as soon as possible to each owner and a duplicate original or certified copy of the policy to each mortgagee; renewal certificates or certificates of new insurance policies shall be furnished to each owner and renewal certificates or certified copies of new insurance policies to each mortgagee not later than ten (10) days before the expiry of any current insurance policy. The master policy for any insurance coverage shall be kept by the Corporation in its offices, available for inspection by an owner or mortgagee on reasonable notice to the Corporation.

(e) No insured, other than the Corporation, shall be entitled to amend any policy or policies of insurance obtained and maintained by the Corporation, or to direct that loss shall be payable in any manner other than as provided in this declaration.

(3) By the owner

It is acknowledged that the foregoing insurance is the only insurance required to be obtained and maintained by the Corporation and that the following insurance, or any other insurance, if deemed necessary or desirable by any owner, may be obtained and maintained by such owner:

(a) Insurance on any additions or improvements made by the owner to his unit and for furnishings, fixtures, equipment, decorating and personal property and chattels of the owner contained within his unit, and his personal property and chattels stored elsewhere on the property, including his automobile or automobiles, and for loss of use and occupancy of his unit in the event of damage, which policy or policies of insurance shall contain waiver of subrogation against the Corporation, its manager, agents, employees and servants, and against the other owners and any members of their household, except for vehicle impact, arson and fraud.

Public liability insurance covering any liability of any owner to the extent not covered by any public liability and property damage insurance obtained and maintained by the Corporation.