7.2 Insurance Policy Provisions

less than three (3) months aggregate Assessments on all Units, plus Reserve Funds. The Association may carry fidelity insurance in amounts greater than required above.

In the event the Association has delegated some or all its responsibility for the handling of funds to a Managing Agent, the Association may require the Managing Agent to purchase, at its own expense, a policy of fidelity insurance or bond that fully complies with the provisions of this subsection.

(d) Worker’s Compensation Insurance. If the Association has employees, the Association shall obtain and maintain worker’s compensation or similar insurance with respect to its employees in the amount and form as may now or hereafter be required by law.

(e) Special Flood Hazard Insurance. If the area where the Condominium Community is located has been identified by the Secretary of Housing and Urban Development (HUD) or the Director of the Federal Emergency Management Agency (FEMA) as a Special Flood Hazard Area, flood insurance that covers the Common Elements shall be maintained providing coverage equivalent to that provided under the National Flood Insurance Program in an amount of one hundred percent (100%) of the current replacement cost of the improvements on the Common Elements. If the Condominium Community at the time of the recording of this Declaration is not identified as a Special Flood Hazard Area but becomes reclassified at a later date as such, the Board of Directors shall obtain flood insurance that covers the Common Elements in accordance with the above. Conversely, flood insurance may be discontinued if the Condominium Community is reclassified out of the Special Flood Hazard Area.

(f) Officer and Director Liability Insurance. The Association may obtain and maintain directors’ and officers’ liability insurance for errors and omissions on all directors and officers including non-monetary and monetary claims coverage to be written in an amount that the Board of Directors deems adequate.

(g) Other Insurance. The Association may obtain and maintain any other insurance that the Board of Directors considers appropriate and prudent to protect the Association, the Owners, and the Common Elements.

7.2 Insurance Policy Provisions. All policies carried by the Association shall, to the extent reasonably available at a reasonable cost, comply with the requirements of this Paragraph 7.2. All policies carried by the Association shall be carried in blanket policy form naming the Association as insured, or its designee as trustee and attorney-in-fact for all Owners and naming each Owner as an insured person under the policies with respect to liability arising out of any Owner’s membership in the Association.

The Association shall make available for review a certified copy or duplicate original of such policy or renewal thereof, with proof of premium payment and a certificate identifying the interest of the Owner in question, to any party in interest, including a Security Interest holder, upon request. The policies shall also contain waivers of subrogation against Declarant, the Association, the Board, the Managing Agent or the Owners and members of their households, their respective agents, employees, and Guests.

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