Unfortunately, most CC&Rs do not require owners to carry insurance. Moreover, many owners have the mistaken belief that because they live in an association, the association's insurance automatically covers their interests. Associations should strongly consider amending their CC&Rs to require owners to purchase and maintain their own insurance. This benefits the membership in the event something from the owner's property damages common areas or other owners' properties. You should amend your CC&Rs to:
1. Clearly define maintenance responsibilities for owners
2. Clearly defining liability for water damage where the association is not negligent
3. Give the Board the authority to special assess individual owners for reimbursement of expenses incurred by the association for mitigating water damage
4. Add language regarding who pays the association's insurance deductible
5. Require owners to carry insurance for damage to their units
Once the amendments have been approved and recorded, notify your carrier of the change. The reduced exposure may result in a reduction in insurance premiums.
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