04 - Staff Report - Conditional Use Permit Wilderness Resort Villas

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reasonably available, contain a "severability of interest" clause which shall preclude the insurer from denying the claim of an Owner because of the negligence of the Association or other Owner. Section 2. Casualty Insurance on Insurable Common Area. Except as such requirements shall be modified by Federal National Mortgage Association ("F.N.M.A."), or Federal Home Loan Mortgage Corporation ("F.H.L.M.C."), the Association shall keep all insurable improvements and fixtures of the Common Area, if any, insured as follows: (a) Against loss or damage by fire and other hazards covered by the standard extended coverage endorsement and by sprinkler leakage (if applicable), debris removal, cost of demolition, vandalism, malicious mischief, windstorm, and water damage, as well as other risks customarily covered in similar projects for an amount equal to the full replacement value (i.e., 100% of current "replacement cost") excluding land, foundation, excavation, and other items normally excluded from coverage, such insurance to cover all common facilities owned by the Association (including all fixtures and building service equipment to the extent they are a pWt of the Common Properties, as well as common personal property and supplies), together'with ch endorsements as may be required by F.N.M.A. or F.H.L.M.C.; ; (b) If any portion of the Common Area is located within an arm which has special flood hazards and for which flood insurance has been made , le under the National Flood Insurance Program ("NFIP"), the Association shall obtain flood insurance on buildings in the Common Area and any other common property covered by ` ed for,bf policy(herein "Insurable Property"), in an amount deemed appropriate, but not lesAbaii of(i)the maximum coverage available under any portion of the Common Nana; or (H) 1 /o of the current "replacement cost" of such �. buildings and other Insurable Property, (c) Against such other,.laazarcla` uies as the Association may deem desirable. All insurance cove ith respect to the Common Area shall be written in the name of, and the proceeds thereof shall be payable to ` e Association. The insurance proceeds shall be used by the Association for the repair or replacement of the property for which the insurance was carried. Premiums for all insur +We carried y the Association are common expenses included in the annual general assessments mad6by the Association under Article V hereof Any policy herein described may not be canceled or sub `w`'' ' ly modified without at least thirty(30) days'prior written notice to the Association. Section 3. Casualty Insurance on Units. In addition to casualty insurance on the Common Area, the Association, through the Board of Directors, may elect to obtain and continue in effect, on behalf of all Owners of Lots, adequate blanket casualty insurance against loss or damage by fire and other hazards covered by the standard extended coverage endorsement, and against loss or damage by debris removal, cost of demolition, vandalism, malicious mischief, windstorm, water damage and other risks customarily covered in similar projects, in such form as the Board of Directors deems appropriate, or in such form (and with such further coverages) as may be required by F.N.M.A. or F.H.L.M.C., in an amount equal to the full replacement value (i.e., 100% of current "replacement cost"), without deduction for depreciation or co-insurance, of all of the Units, including the structural portions and fixtures thereof, owned by such Owners. Insurance premiums for any such blanket insurance coverage shall be included in the annual general assessments of the Association. The 13