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a. Property insurance in broad form covering all risks of physical loss in an amount equal to <br /> one hundred percent(100%)of the insurable"Replacement cost"of the Property,less <br /> deductibles,exclusive of land,footings,excavation and other items normally excluded <br /> from coverage(but including all building service equipment and machinery). The policy <br /> 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. Such policy or policies shall include such addifional endorsements, <br /> coverage and limits with respect to the foregoing and other hazards as may be required <br /> from time to time by the regulations of the FHA or Federal National Mortgage <br /> Association ("FNMA")as a precondition to their insuring, purchasing or financing a <br /> Mortgage on a Unit. The Board may also,on behalf of the Association,enter into <br /> binding written agreements with a Mortgagee,insurer or servicer, including with <br /> limitation the FHA or FNMA,obligating the Association to keep certain specified <br /> coverage or endorsements in effect. <br /> b. Comprehensive public liability insurance covering the use, operation and maintenance of <br /> the Common Elements,with minimum limits of$1,000,000 pr occurrence against claims <br /> for death, bodily injury and property damage,and such other risks as are customarily <br /> covered by such policies for projects similar in construction, locafion and use to the <br /> Property. The policy shall contain a "severability of interest"endorsement which shall <br /> preclude the insurer from denying the claim of an Owner or Occupants because of <br /> negligent acts of the Associafion or of the Owners or Occupants. The policy shall include <br /> such additional endorsements,coverage and limits with respect to such hazards as may <br /> be required by the regulations of the FHA or FNMA as a precondition to their insuring, <br /> purchasing or financing a Mortgage on a Unit. <br /> c. Fidelity bond or insurance coverage against dishonest acts on the part of directors, <br /> officers, manager,trustee,employees or persons responsible for handling funds <br /> belonging to or administered by the Association if deemed to be advisable by the Board <br /> or required by the regulations of the FHA or FNMA as a precondition to the purchase or <br /> financing of a Mortgage on a Unit. The fidelity bond or insurance shall name the <br /> Associafion as the named insured and shall, if required by the regulations of the FHA or <br /> FNMA as a precondition to their insuring, purchasing or financing of a Mortgage on a <br /> Unit,be written in an amount equal to the greater of(i)the estimated maximum of <br /> Association funds, including reserves, in the custody of the Association or management <br /> agent at any given time while the bond is in force,or(ii)a sum equal to three months <br /> aggregate assessments on all Units plus reserves. An appropriated endorsement ta the <br /> policy to cover any persons who serve without compensafion shall be added if the policy <br /> would not otherwise cover volunteers,or a waiver of defense based upon the exclusion <br /> of persons serving without compensafion,shall be added. <br /> d. Workers'Compensation insurance as required by law. <br /> e. Directors and officers liability insurance with such reasonable limits and coverage as the <br /> Board shall determine from time to fime. <br /> 18 <br />