DATE: February 5, 2010
This resolution was adopted by the board of directors at their meeting on February 5, 2010 to clarify
insurance coverage to be provided by the association and to assist owners in determining what coverage
they should obtain for their homes. As the articles are written the board has determined (based upon the
advice of their insurance advisors) that significant issues could arise should a building suffer major damage
that could delay or even prevent prompt and efficient reconstruction of the building.
Section J of the articles require the association to acquire insurance on the building and the common
elements against damage by fire and other hazards and other such risks as customarily may ne covered with
respect to buildings on the land. Flexibility is provided to allow the association to ensure full coverage and
minimum duplication of coverage between the association policies and those the individual owners may
enter into.
Section J also advises each owner to be responsible for insurance upon their own personal property, their
own improvements over original construction, and for their personal liability.
The board hereby resolves that the following definition shall be the basis for property coverage
provided by the association and will so advise the insurance carrier. Owners will be advised of this
decision so they may properly insure their homes and belongings.
The Association shall obtain and maintain at all times fire, casualty, liability, wind, and hail
insurance coverage for the Townhome, and/or umbrella, excess, or any other coverage
deemed desirable as part of the insurance coverage. The property insurance shall be for the
full replacement value of the buildings (including wiring, plumbing, air conditioning and
other such facilities) and will also provide for replacement of the interior sheetrock walls,
doors, baseboards, ceilings, permanently installed cabinets, appliances such as refrigerator,
oven, stove, dishwasher, washer, dryer, installed carpeting and wooden floors and
fluorescent lighting as originally constructed.
Each Owner is encouraged to obtain additional insurance as agreed with his or her personal
insurance agent. This coverage might include wall paint or coverings, carpeting,
furnishings, interior cabinets and plumbing fixtures and other enhancements which exceed
the original design offered by the builder, flood insurance and coverage for all items of
personal property belonging to the owner along with casualty and public liability insurance
coverage within each individual unit, which are specifically made the responsibility of the
Owner. The Owner may also want to purchase coverage to “buy down” the deductible
offered within the association policy especially for wind and hail damage from a major
Gleannloch Farms HOA Board