Insurance

INSURANCE POLICY RESOLUTION

We, the undersigned, being a majority of the Managing Board of the Cambridge Cohousing Condominium Association under Declaration and Bylaws recorded with the Middlesex County South District Registry of Deeds in Book 28176, Page 181, as amended ("Bylaws"), do hereby adopt the following policy resolution to establish orderly procedures relating to property insurance claims, repairs and deductibles pursuant to the provisions as set forth in Article XII, Section 12.1 of said Bylaws.

I. Master Insurance Policy and Determination of Deductible.

The Association shall maintain a Master Insurance policy as required by Section 12.1 of the Bylaws. The Managing Board shall determine the amount of the deductible under the Master Policy taking into consideration cost, loss experience of the Association, and professional advice.

II. Notice.

The Managing Board shall give notice to the unit Owners of the amount of the deductible under the Master Policy (currently $5000.00 for each of our four building "clusters" for most types of losses) and any change in this amount, not more than 10 days after the effective date of the change. Unit Owners should notify their insurance agent of any changes and determine whether they need to change their policies.

III. Responsibility for Insurance.

(a) Association: The Association shall have no responsibility to obtain

property loss insurance for any Owner or Tenant for damage to a unit not covered by the Association's Master Policy because of the deductible amount or because the claim is one not normally covered by fire and property loss insurance policies with extended coverage endorsements. The Association will not be responsible for property damage to a unit in an amount less than the deductible, regardless of the cause of the claim.

(b) Unit Owners: Owners shall be responsible for obtaining and maintaining insurance policies insuring their units for any losses, including the Owner's share of the deductible amount under the Association's Master Policy, and for loss of or damage to personal property, improvements, etc. not covered by the Master Policy, regardless of the cause of the claim. An Owner shall be responsible for damage that occurs as a result of neglect by the Owner to another Owner's unit. Investor Owners should also obtain coverage for damage to the unit, improvements, loss of rent, liability and other appropriate coverage.

(c) Tenants: Tenants shall be responsible for insuring their own personal property and, if requested, shall provide the Owner with proof that they have appropriate coverage.

(d) Liability Insurance: Owners and Tenants shall obtain and maintain comprehensive liability policies with limits as deemed necessary by the Owner and his or her insurance agent. The insurance shall provide coverage for the negligent acts of owners, tenants, guests or other occupants of the units, for damage to the common spaces, other units, and the personal property of others.

IV. Payment of Deductible.

(a) Assessment of Deductible: The unit Owners are responsible for the condominium master policy deductible for items covered by the Master Policy. The Managing Board shall have the right to assess the deductible to unit Owners as the Managing Board may determine, in their sole discretion including, but not limited to, assessing and apportioning the deductible to Owners who sustain property damage to their units.

(b) Damage Not Resulting from Negligence: If a loss affects more than one unit, when there is no negligence by any party, each party that sustained damage (the Association or Unit Owners or both) shall pay their proportionate share of the Association's deductible amount equal to the proportion that those portions of the building the every-day maintenance of which is the responsibility of the party under the Bylaws, bear to the total of all building damages incurred in the loss. If the damage is confined to a single unit, the Owner shall be responsible for the entire deductible of the Association's Master Policy.

(c) Damage Resulting from Negligence: If the damage affects more than one unit, common space, or both, the deductible shall be allocated to the negligent party or parties.

(d) Duplicate Coverage: In the event of duplicate insurance coverage, the Owner's policy shall be considered the primary insurance.

V. Procedure for Claims Handling.

(a) The Association shall have no obligation or responsibility to perform, or cause to be performed, repairs to an individual unit.

(b) If the estimate to repair the damage sustained is less than the Master Policy deductible (currently $5000), the Unit Owner is solely responsible for dealing with the Owner's own insurance agent and for undertaking repairs.

(c) If the estimate is more than the deductible the Owner must report damage to the Management Company (presently The Hofeller Company) within 48 hours of discovery of the damage. Unit Owners shall notify their insurance agent at the same time. The unit Owner shall· obtain bids to repair the damage and submit them to the Management Company within 30 days. The Association will not honor claims that are denied by the Insurance Carrier because of failure to report the damage promptly.

(d) The Management Company may inspect the damage to assess the approximate cost of repair or replacement. If health and safety require immediate repair be carried out, the Management Company will secure approval for these repairs from the Insurance Carrier for the Master Policy and the Owners will secure approval from their insurance agent.

(e) When the scope of work and the amount of the claim have been approved by the insurance adjuster(s), the Owner will be authorized to begin work. Unit Owners may ask the Association to seek payment from the Insurance Carrier in order to begin work. If the Association receives funds from the Carrier the Association may pass on this early payment to the Owner upon execution and delivery of a Release by the Unit Owner in the form attached hereto and incorporated herein.

(f) The Insurance Carrier for the Master Policy will forward payment of the claim to the Association which will issue payments to the Owner as necessary. Final payment will be made to the Owner by the Association:

• when the Association has received the final payment from the Insurance Carrier;

• after the insurance adjusters have had the opportunity to inspect the work;

• upon execution and delivery of a Release by the Owner, in the form attached and incorporated herein.

(g) Payments by the Owner's insurer will be paid directly to the Owner.