HomeMy WebLinkAbout2623 ARTTCLE XIII
INSURANCE
The Condominium Association shall use its best efforts to
obtain and maintain adequate insurance to protect the Association
and the Common Elements. The insurance carried by the Condominium
Association shall be governed by the following provisions:
A. Loss Pa able Provisions - Insurance Trustee. All policies
purchased by t e Association shall be for the bene it of the
Association, all Unit Owners and mortgagees as their interests
may appear. Such policies shall be deposited with the Insurance
Trustee (as hereinafter defined), who must first acknowledge that
the policies and any proceeds thereof will be held in accordance
with the terms hereof. The Insurance Trustee shall be the named
insured and it shall not be necessary to name the Association or
the Unit Owners; however, a mortgagee endorsement shall be issued.
Said policy shall provide that all insurance proceeds payable on
account of loss or damage shall be payable to the Insurance
Trustee, which may be any bank in Florida with trust powers as
may be approved by the Board of Directors of the Association and
by the Construction Lender, which Trustee is herein referred to
as the "Insurance Trustee." The insurance Trustee shall not be
liable for-the payment of premiums nor for the renewal or the
sufficiency of policies, nor for the failure to collect any
insurance proceeds, nor for the form or contents of the policies.
The sole duty of the Insurance Trustee shall be to receive such
proceeds as are paid and hold the same in trust for the purposes
elsewhere stated herein, and for the benefit of the Association,
the Unit Owners and their respective mortgagees, in the following
shares, but such shares need not be set forth upon the records of
the Insurance Trustee.
(1) Loss Payable Provision as to Common Elements:
Proceeds on account of damage to Common Elements - an
undivided share for .each Unit Owner, such share being
the same as the undivided share in the Common Elements
appurtenant to his Unit. Limited Common Elements shall
be treated as Common Elements for this purpose.
(2) Loss Payable Provision as to Condominium
I Units: Proceeds on account of Condominium Units shall
be in the following undivided shares:
i (a) Partial Destruction - When Units are to
~ be repaired and restored - for the Owners of
g the damaged Units in proportion to the cost
( of repairing the damage suffered by each Unit
Owner.
(b) Total Destruction of improvements to
Condominium Property or where "Very Sub-
stantial" damage occurs and the improvements
to Condominium Property are not to be restored
as provided hereinafter in this Article - for
the Owners of all Condominiur.? Units, each
Owner's share being in proportion to the
Owner's share of Common Elements appurtenant
to the Owner's Condominium Unit.
3
(3) Loss Payable Provision as to Mortgagees: In
the event mortgagee endorsement has been issued as to a
Unit, the share of the Unit Owner shall be held in
trust for the mortgagee and the Unit Owner as their
i
~ -11-