8.1 Coverages Carried by the  Association
The association carries the following types of insurance in accordance with the bylaws and the covenants:
- General Liability - Protects all members of the association (all townhouse owners) against claims and lawsuits which might result from someone being injured on our property. Also, this coverage protects against damage or injury caused by our employees in the course of performing their maintenance duties.
- Worker's Compensation - Protects the association against claims by an employee who is injured during the performance of his or her duties.
- Property - Protects the association, owners, and mortgage lenders against physical damage to townhouses. (This coverage is discussed in more detail below.)
- Directors and Officers Liability - Protects those volunteers who serve as directors and officers of the association against lawsuits.
- Fidelity Bond - Protects the association against monetary loss caused by dishonest acts of the directors, officers, or employees.
8.2 How Insurance Premiums are Paid
- Premiums for the above insurance coverages are paid annually by all members of the association (all townhouse owners). Statements and certificates of insurance are sent out in January by the Village insurance agent, listed in Section 1.8. For those whose insurance premiums are included with their mortgage payments, the statements and certificates will be sent to your mortgage companies with a copy to the owner. Questions concerning premium payments should be addressed to the Village insurance agent listed in Section 1.8.
- When an owner does not pay his or her insurance premium, the association must pay. Collection of delinquent payments then are handled by Gammon and Associates, similar to delinquent maintenance fees.
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8.3 Recommended Coverages for Townhouse Owners
- The association's property insurance policy for physical damage to townhouses has a deductible of $2,500. The deductible is per occurrence. Therefore, there will be situations in which the entire amount of the deductible will be paid by the association. An example would be a storm in which the exteriors of several townhouses are damaged. On the other hand, there will be cases when the entire amount of the deductible would be paid by an individual townhouse owner. An example would be water damage caused by leaking plumbing or a small fire, confined to a single townhouse.
- Because of the higher deductible and incidents of possible individual liability, owners are advised to consider obtaining supplemental insurance coverage. When you consult with your insurance agent, it is recommended that you inquire about the additional types of coverage discussed below.
- The association's policy is intended to protect the structure primarily, but it does cover carpet, wall finishes, and some appliances, subject to the deductible. The policy does not cover contents such as furniture, electronics, and clothing.
- Owners should obtain supplementary property coverage which is appropriate, whether or not the owner resides in the townhouse or rents it to others. An endorsement is needed when the townhouse is rented out. Such coverage can be used to pay some of the deductible amount associated with the master policy and it can, of course, be used to pay for items not covered by the association's policy.
- There is usually some overlapping of the association's policy and a homeowner policy. In the case of an overlap in coverage, the association's policy pays first; what it does not cover will be paid by the homeowner policy up to the limits specified in that policy.
- Owners who rent their townhouses should obtain coverage for liability as landlords. The association's policy does not provide such coverage. Landlord liability coverage can be added to the homeowner policy, it can be purchased as a separate policy, or it can be added as a rider to insurance carried on other property owned by the landlord.
- The association's policy for physical damage to townhouses was purchased through Migura Insurance Agency. Should you have questions, contact the Village insurance agent listed in Section 1.8.
8.4 Recommended Coverages for Renters
Renters are advised to consider a renter's policy to cover personal property and personal liability.
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