We have had several questions recently about “Master Policy”, something that apparently Condominiums carry, wherein they insure the structures and the homeowner/tenant insures the contents. I have had several insurance agents argue this point as they believe this is a Condo association, which it is definitely not. We are a Subdivision HOA.
One homeowner said that it looked like the Declaration (C&R) eluded to a Master Policy in this paragraph:
5.1 Association Insurance. The Association shall have the authority to and shall obtain or cause to be obtained insurance for all insurable improvements which the Association is obligated to maintain, whether or not located on the Common Property. This insurance shall provide, at a minimum, fire and extended coverage, including vandalism and malicious mischief, and shall be in an amount sufficient to cover the full replacement cost of any repair or reconstruction in the event of damage or destruction from any such hazard. Alternatively, the Board may purchase “all-risk” coverage in like amounts.
At first glance, this seems to say that any “improvement” the Association is “obligated to maintain” might just include the individual townhouses. It does use phraseology that might make one think so, but this is not the case. Farther down the Declaration a bit this point is clarified:
5.2 Individual Insurance. By virtue of taking title to a Lot, each Owner acknowledges that the Association has no obligation to provide any insurance for any portion of any Lot, and each Owner covenants and agrees with all other Owners and with the Association that each Owner shall carry property insurance on his Lot and all structures constructed thereon and a liability policy covering damage or injury occurring on the Lot.
I do hope that anyone who has not provided proper proof of insurance does so soon.