The Association shall obtain and maintain in effect at all times the following insurance:
Liability Insurance.
The Association shall obtain and maintain comprehensive public liability insurance insuring the Association and the Members against any liability incident to the ownership, use or maintenance of the Association property. The limits of such insurance shall not be less than One Million Dollars ($1,000,000.00) covering all claims for death, personal injury, and property damage arising out of a single occurrence. Such insurance shall include coverage against any liability customarily covered. Such policy may provide for a reasonable deductible.
Property Insurance.
The Association shall obtain and maintain a policy of property insurance, both real and personal, for the full insurable replacement value of all the improvements on Association Property, to the extent available at reasonable cost. Such a policy may provide for a reasonable deductible. The form, content, term of the policy, its endorsements, and the issuing company must be consistent with good insurance coverage for like properties.
Workers' Compensation Insurance.
The Board shall purchase and maintain workers' compensation insurance for all employees.
Officer and Director Insurance.
The Association shall purchase and maintain liability insurance for directors, officers, employees, and volunteers appointed by the Board. The Association may procure a fidelity bond for the administrator and officers of the Board of Directors of the Association.
Other Insurance.
The Board may purchase and maintain any other insurance that it deems necessary and reasonable.
Waiver of Subrogation.
All property and liability insurance carried by the Association shall contain provisions whereby the insurer waives rights of subrogation as to the Association and its Members, if available.
Review of Master Policy and Endorsements.
All insurance policies shall be reviewed at least annually by the Board and the Association's agent or other insurance consultants.
Payment of Premiums.
Premiums on insurance maintained by the Association shall be a common expense funded by Assessments levied by the Association.
Owner's Insurance.
Owners may carry such liability and property insurance as they may desire. The Association has no authority or responsibility to obtain property insurance covering this or other improvements on Owners' Lots.
Section 2
Destruction.
Destruction of Association Property
In the event of damage or destruction to any Association Property, the Board shall have the duty to repair and reconstruct it from available insurance proceeds and Special Assessments unless such property is no longer needed by the Association. If not needed for such repair or reconstruction, insurance funds may be used for a different needed facility or placed in the capital reserve for future facilities construction.
Rebuilding Contract.
Subject to availability of adequate funds, it shall be the obligation of the Board to take all steps necessary to assure the commencement and completion of repair and reconstruction at the earliest possible date.
Special Assessment to Rebuild.
The Association may propose a Special Assessment against all Owners to cover the cost of rebuilding not covered by insurance proceeds or other funds available for such purpose.
Destruction Affecting Private Property.
If there is a total or partial destruction of private property, the Owner-Member shall:
Rebuild or repair the destroyed improvements in substantial conformity with the original design thereof and the structural integrity existing immediately before the damage or destruction; or
Following written approval by the Board, rebuild the destroyed improvements in a design different from that existing before the destruction. Failure of the Board to approve or reject any such proposed changes in design following a complete application of an Owner-Member within sixty (60) days after submission of such complete plans shall be conclusively deemed an approval of such plans; or
Clear all structures and improvements from the Lot and shall landscape the unimproved Lot in a manner approved in writing by the Board.
Failure of an Owner-Member to comply with this Section shall not relieve the Owner-Member from any Assessment obligation. Any construction or landscaping pursued under this Section shall be commenced within ninety (90) days of the sate of the damage or destruction, and shall be diligently pursued to completion.