Liberty Commons Condominium Trust Insurance Resolution
We, the undersigned, being a majority of the Board of Trustees of the Liberty Commons Condominium Trust under Declaration of Trust dated May 3, 2001 and recorded with the Worcester County Northern District Registry of Deeds in Book 3785, Page 151, as amended (“Trust”), do hereby adopt the following policy resolution to establish orderly procedures relating to property insurance claims, repairs and deductibles pursuant to the provisions as set forth in Article VI, Section 14 of said Trust as follows:
- Master insurance policy: The Condominium shall maintain insurance as required by Article VI, Section 6 of the Trust.
- The Trustees shall determine the amount of the deductible which is currently $2,500.001 for most types of losses but which may be higher for other types of losses.
- The Trustees shall have the right to assess the deductible to Unit Owners as the Trustees may determine, in their sole discretion, including, but not limited to, assessing and apportioning the deductible to Unit Owner(s) sustaining property damage to their Unit(s).
- In the event of property damage to a Unit or Units, the Trust shall not be responsible for the payment of the deductible but rather said Unit Owner or Unit Owners shall be responsible for same regardless of the cause of the claim.
- Each Unit Owner is solely responsible to obtain his or her own insurance coverage in appropriate kinds and amounts to insure his or her Unit, personal effects and contents, Unit improvements and coverage for the Condominium Trust’s deductible, as well as, insuring for liability and all such other coverages which said Unit Owner desires.
- It is suggested that all Unit Owners obtain endorsements to their policy for various coverages including, but not limited to, all risk coverage, loss assessment coverage, Coverage A in satisfactory amounts, and any other insurance deemed necessary by the Unit Owner or his or her agent to provide coverage for the Condominium’s deductible.
- It is recommended that all Unit Owners review their own insurance coverage with their own insurance agent or insurance advisor.
- Unit Owners should also obtain coverage for loss of rent, liability and all other appropriate coverages. Unit Owners should obtain written verification that their tenants have appropriate insurance coverage.
- If a Unit Owner sustains property damage in amounts less than the Condominium Trusts Master Policy deductible, the unit owner shall be solely responsible for the cost to repair the damage, and the Unit Owners should notify his or her insurance agent. The Trust will not be responsible for property damage to a Unit in an amount less than the deductible, and no Unit Owner shall file a claim under the master insurance policy. The Unit Owner must resolve the claim with their individual insurance agent or carrier.
- The following steps should be followed when damage occurs in a Unit in excess of the Condominium Trust’s master policy deductible:
- Damage in excess of the Condominium Trust’s deductible must be reported within 24 hours to the Management Agent. Failure to report claims promptly may result in the claim being denied by the Insurance Carrier. The Trust will not honor claims that are denied by the Carrier because of failure to report in a prompt fashion. Unit Owners shall also notify their Insurance Carrier at the same time. The damage may be inspected to assess the approximate cost of the damage.
- The Management Agent will notify the Trust’s Insurance Agent of the loss. Should immediate repairs need to be made in order to insure the safety of Unit occupants, the Management Agent will secure approval for these repairs from the Insurance Carrier.
- The Management Agent will instruct the Unit Owner to secure bids to repair the damage within thirty (30) days. These bids are to be submitted to the Management Agent with a cover sheet itemizing the costs and totaling the same. This sheet must contain the Unit Owner’s signature. If the damage is less than the Master Policy Deductible, the Unit Owner need not submit anything further and should deal with their own insurance agent or carrier, as per paragraph 6 in this Resolution.
- During the bidding and damage assessment process, the Unit Owner must work closely both with the Management Agent and the Master Policy Insurance Adjuster in order that the scope of work is agreed upon by all parties prior to commencement of said restoration work. This includes, but is not limited to, making the unit available for inspection, securing additional bids should the Insurance Adjuster request it, and promptly responding to requests made by the Insurance Adjuster and/or Management Agent.The Trust will not be responsible for the timeliness of insurance claims being paid. If a claim payment is delayed, no interest, penalties or other claims will be honored.
- In the event there is a dispute, the final approval of settlement costs is with the Insurance Company and the Unit Owner must abide by its decision.
- Once it is agreed by all parties what the scope and amount of the claim will be, the Unit Owner will be given permission to commence work. Unit Owners may ask that the Trust request payment of the claim in order that the Unit Owner has funds to initiate restoration work. If the Insurance Carrier forwards this amount to the Trust, then the Trust may pass the benefit of this early payment to the Unit Owner. The Trust will issue payment of the applicable insurance proceeds to the Unit Owner upon the execution and delivery of a Release by the Unit Owner of the Trust, in the form as attached hereto and incorporated herein.
- Final payment will be made when:
- The Insurance Adjuster has had the opportunity to inspect all repair work.
- The Trust has received the final payment from the Insurance Carrier.
- The Unit Owner has signed a Release.
- The Trust shall have no obligation or responsibility to perform or cause to be performed repairs to an individual Unit.
- The Unit Owner is responsible for the condominium master policy deductible for items covered by the Master Policy and is also responsible for all damage to the Unit, personal property, improvements, rent loss, etc. not covered by the Master Policy.
1 The insurance deductibles have increased since the execution of this Insurance Resolution. Current deductibles can be obtained from the Managing Agent and/or Board of Trustees.