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SECTION 9
<br />INSURANCE
<br />91. Re uired Covera e. The Association shall obtain and maintain, at a rnimmum, a
<br />master policy or policies of insurance in accordance with the insuranco requirements set forth in
<br />r MCIOA- and the additional requirements set ford herein, issued by a reputable insurance
<br />company or companies authorized to do business in the state of .Minnesota, as follows.
<br />9.1.1. Property insurance in broad form covering all risks of Physical loss m an
<br />amount equal to one hundred percent of the insurable "replacement cost" of the Property, '
<br />less deductibles, exclusive of land, footings, excavation and other items normally
<br />excluded from coverage (but including all building service equipment and machinery).
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<br />The Association may or may not, as determined by the Board, insure the hnprovernents
<br />and bettennents referred to in Section 515B.3 --1 l3(b )(i) through (vii) of MCIOA, The
<br />policy or policies shall cover personal property owned by the Association, The Policy or
<br />policies shall also contain ."Inflation Guard" and "Agreed. Amount" endorsements, if
<br />reasonably available. Subject to approval of the Board, such policy or policies shall
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<br />include such additional endorsements, coverages and limits with respect to the foregoing {
<br />and other hazards as may be required from time to time by the regulations -of they Federal
<br />Housing Administration (THA"), the U.S. Department of veterans' Affairs ("VA"), the
<br />federal rational Mortgage Association ("FNMA") or the federal Home Loan Mortgage
<br />Corporation ( "FHLMC ") as a precondition to their insuring, purchasing ,or financing a
<br />mortgage on a Unit. The Board may also, on behalf of the Association, eater into binding
<br />written agreements with a mortgagee, insti -rer or servioer, including without limitation the
<br />FHA, VA, FNMA or FI-ILMC, obligating the Association to keep certai-n specified
<br />coverages or endorsements in effect.
<br />9; l .2. ' Commercial general liability insurance covering the use, operation and
<br />maintenance of the Common Elements and the activities of the .Association, with
<br />Minimum limits of one Million Dollars per occurrence, against claims for death, bodily
<br />injury and property damage, and such other risks as are customarily covered by such
<br />policies for projects similar in construction., location and use to the Property, The policy
<br />shall contain a "severability of interest" endorsement which shall preclude the' insurer
<br />from dehyirig the claim W an Owner or Occupant because of negligent acts of the
<br />Association or other Owners. or Occupants. Subject to approval of the Board, the policy
<br />sball include such additional endorsements, coverages and limits with respect to such
<br />hazards as may be required by the rogu.lations of the FHA, VA, FNMA. or FHLMC as a
<br />precondition to their insuring, purchasing or financing a mortgage -on a Unit.
<br />9,1.3. Fidelity bored or insurance coverage against dishonest acts on the part of
<br />directors, officers, managers, tmstees, employees or persons rosponsible for handling
<br />funds belonging to or administered by the Association, if deemed to be advisable by the !
<br />Board or required by the regulations of any financing- related institution as a'pre'condition 1
<br />to the purchase, insuring, - guarantee, or financing of a mortgage on .a Unit. The, fidelity
<br />bond or insurance shall name the Association as the named insured, and shall, subject to f
<br />approval of the Board, comply with the regala.tions of the ITNMA, FHLMC, FIFA or VA,.
<br />if required b one of such agencies as a precondition to the piirchase, financing, insuring,
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<br />MP'LS -Word 2021 80.3 24
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