Coverage Requirements

When required, a master property insurance policy must be maintained with premiums paid as a common expense by the HOA. The policy must cover all insurable property elements. Common personal property and supplies should be covered, if applicable.

Master property insurance coverage policies covering project developments should be written on a "Special" coverage form or equivalent. At a minimum, the coverage must include the perils listed in the following table.

	Fire
	Lightning
	Explosion
	Windstorm (including named storms designated by the U.S. National Weather Service or the National Oceanic and Atmospheric Administration by a name or number)
	Hail
	Smoke
	Aircraft
	Vehicles
	Riot or civil commotion
	Vandalism
	Sprinkler leakage
	Sinkhole collapse
	Volcanic eruption
	Falling objects
	Weight of snow, ice or sleet, or water damage

If a master property insurance policy excludes or limits coverage of any of the required perils, the HOA must obtain an acceptable stand-alone property insurance policy which provides adequate coverage for the limited or excluded peril (see Additional Insurance Requirements for additional information).

The policy must provide for claims to be settled on a replacement cost basis. Policies written on an actual cash value basis are not acceptable.

See Named Insured for Property and Flood Insurance in Mortgagee Clause, Named Insured, and Notice of Cancellation Requirements for the named insured requirements.