Owner Responsibility. Assuming the CC&Rs are silent on the issue, boards may adopt a policy in the Rules & Regulations that any loss attributable to an owner that results in a claim against the association's insurance, the owner shall pay the deductible. The policy can be added to the Rules but amending the CC&Rs makes the policy stronger. Any such amendment should make it clear that owners pay the deductible when they are responsible for the loss, either because of their own negligence or because something under their control failed (such as a dishwasher, toilet valve, etc.)
Association Responsibility. There will be losses where the association is responsible for paying the deductible. So as to avoid special assessments and to satisfy Fannie Mae guidelines, associations should set up a fund to pay the deductible.
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