INSURANCE DATA

Notice: The following insurance information was provided to homeowners by CB Insurance in 2009.

For current insurance information on coverage contact CB Insurance in Colorado Springs at 719-477-4266 or Toll-Free at 877-855-8442.

The Pine Terrace Homeowners Association carries the following insurance coverages:

FREQUENTLY ASKED QUESTIONS

1. What part of the building does the Association cover?

Your unit is insured for full replacement value with no depreciation as long as repairs are made. This includes permanent attachments inside your unit, and extends to improvements or upgrades made by you. For example, the master policy covers paint, wallpaper, wall-to-wall carpeting, cabinetry, countertops, fireplaces, plumbing fixtures, doors, trim work, wood beams, recessed lighting, and ceiling fans. The master policy does not cover any of your personal property.

2. Are my appliances covered?

Appliances that service the unit, such as central air-conditioning, furnace, hot water heater, garbage disposal, dishwasher, range, refrigerator, washer and dryer are covered by the master policy. Appliances are not covered for theft or breakdown.

3. What kinds of losses are covered?

Your unit is covered by the Special Causes of Loss form, excluding theft of appliances.

This form covers the same types of losses to your unit as the building coverage in a standard Homeowners policy. Some examples are losses caused by fire, lightning, wind or tornado, hail, water damage from sudden rupture of a pipe inside the building, and vandalism. Types of losses that are not covered include, but are not limited to, earth movement, earthquake, flood or subsurface water, mold, wear and tear, and defective construction.

4. What kind of insurance do I need to carry?

You are responsible for securing insurance for your own personal property, loss of use, loss assessment, your responsibility for the Association master policy deductible and personal liability. This, is best: accomplished through purchase of a Condominium or Townhome Unit Owners Homeowner's Policy; often times called a HO-6 policy.

5. How are claims handled?

Losses are settled through the Association, subject to the Association's $5.000 per loss deductible, Your Board of Directors, in compliance with the Associations governing documents and established policies, determines who is responsible for the deductible should a loss occur. Claims should be reported through the Association's Property Manager, or the Association's appointed contact person.

6. Can unit owners get coverage for the Association's Deductible even if it generates a Special Assessment by the Association?

Currently there is some confusion and/or disagreement in the insurance industry about if and how unit owners can cover their responsibility for an Association's deductible in their individual Homeowners policies. Customarily, each unit owner is responsible for insuring building items that are not the Association's responsibility, their personal property, their loss of use and their personal liability. This is best accomplished by purchase of a Condominium Unit Owners Homeowners policy, commonly called a HO-6 or Form 6 Homeowners policy. Most insurance carriers' HO-6 policies include two provisions that could apply to cover a unit owner's responsibility for the deductible in their Association's master policy.

The first provision is called Coverage A – Dwelling. The Dwelling provision allows unit owners to cover "items of real property (building items) that pertain exclusively to the residence premises." This is the policy provision that many insurance carriers use to allow unit owners to cover their responsibility for their Association's insurance deductible. Many HO-6 policies automatically include a small amount of Dwelling coverage for no additional charge. If necessary, the Dwelling limit can be increased for a small additional premium.

The second provision is called Loss Assessment. Like Coverage A ~ Dwelling, most HO-6 polices include a small amount of coverage for Loss Assessment, customarily a $1,000 limit. Also like Coverage A - Dwelling, the loss Assessment coverage can be increased for a small additional premium. Some HO-6 carriers limit the amount of Loss

Assessment payable for reimbursement of an Association's deductible to a maximum of $1.000. Loss Assessment coverage only responds when the loss assessment is the result of a claim that otherwise would be covered by the Associations master policy, but is not, because of inadequate limits, or possibly because of a high deductible that must be borne by all unit owners. Loss Assessment coverage does not apply to financial assessments that are not related to insurance claims.

There are many carriers who will provide adequate coverage for at unit owner's responsibility for their Association's deductible. It is strongly recommended that each unit owner contact his/her Homeowners insurance carrier to determine what Dwelling and loss Assessment coverage is included in their HO-6 policy and how their carrier recommends providing coverage for the deductible. Should coverage not be available through a unit owner's existing Homeowners Insurance carrier, CB Insurance can provide a HO-6 policy that includes coverage for a unit owner's responsibility for their Association's deductible. Please contact CB lnsurance, Val Jennings at (719) 477 4242 for more information.