Insurance Requirements - (1) Hazard: blanket all risk policy with 100% replacement, deductible not to exceed 5% of policy face amount, (2) Liability: coverage must be $1 Million per occurrence, (3) Flood Insurance: lesser of 100% of insurable value or maximum coverage allowed per NFIP ;coverage of each unit should be the lesser of $250,000 or the amount of its replacement cost (I.e., the replacement cost of all units combined or the number of units x $250,000);deductible not to exceed $25,000 per building located in the flood zone, (4) Fidelity Bond: required for projects with over 20 units, coverage must be In amount sufficient to cover three months of HOA dues or meets requirements of state law.

Condominium project insurance master or blanket policies containing either of the following are prohibited: 

 

·         A blanket policy that covers multiple unaffiliated condominium associations or projects, or

 

·         A self Insurance arrangement whereby the owners' association is self insured or has banded together with other unaffiliated associations to self Insure all of the general / and limited common elements of the various associations.