Rec Doc 2016-099081 CONF The Grove Declaration of Restrictions (CC&Rs)

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omissions as are normally and customarily included in homeowners property insurance policies of the types required herein. Nothing herein imposes any duty or obligation on the Association or any director, officer or agent thereof to confirm that Owners are carrying the insurance required under this Section 7.1. Each Owner is strongly advised to seek the advice of a qualified insurance consultant regarding: (i) the amount of personal liability and personal property insurance coverage the Owner should maintain and (ii) the availability of loss assessment insurance coverage. 7.2 Association Liability Insurance. The Association shall obtain and maintain the following liability policies: 7.2.1 General Liability Policy: A general liability insurance policy insuring the Association, any manager, Declarant, the Association's directors and officers, and the Owners against bodily injury or property damage from an accident or occurrence within the Common Area. The Association shall be the first named insured under the policy. Subject to the terms and conditions of the policy, the policy also shall cover bodily injury or property damage from an accident or occurrence within any Lot related to any act or omission of an agent of the Association in the performance of the Association's duties under this Declaration. The policy shall include, if obtainable, cross liability or severability of interest coverage. The limits of such insurance (including the commercial general liability and any excess liability coverage) shall not be less than $1,000,000 covering all claims for bodily injury and property damage arising out of a single occurrence. The coverage may be a combination of primary and excess policies. The insurance shall contain coverage terms equivalent to or better than the terms provided by Insurance Services Offices ("ISO") form CG001 or any successor form thereto. Such insurance shall include coverage against liability for owned, non -owned and hired automobiles and other liability or risk customarily covered with respectto projects similar in construction, location and use. The policy shall be primary and noncontributing with any other liability policy covering the same liability. Any notice of cancellation or material changes to the policy shall be provided by the issuing insurance company in accordance with the notice requirements in the policy. If cancelled the Board shall replace the policy with a substantially equivalent policy. The policy shall also satisfy the insurance requirements set forth in the Stormwater Agreement and the Landscape Maintenance Agreement for Parcel A described in Sections 2.11 and 2.12. If there is any conflict between the insurance requirements in this Section 7.2 and the Stormwater Agreement or Landscape Maintenance Agreement, the requirements that provide greater insurance coverage shall control. 7.2.2 Directors and Officers Liability Policy: A directors and officers liability policy containing such terms and conditions that are normally and customarily carried for directors and officers of a residential association and in sufficient amounts to satisfy the insurance requirements of Civil Code section 5800 or any successor statute thereto. 7.3 Association Property Insurance. The Association, in the sole discretion of the Board, may obtain and maintain a property insurance policy on the Common Area Improvements and Association personal property in such amounts and containing such terms and conditions as the Board from time to time may select. 7.4 Insurance Rating and Cancellation. The insurance company providing the Association's insurance under Section 7.2, if applicable, shall have a A.M. Best rating of not less than A:VII if licensed to do business in the State of California and a rating of not less than A:X if not licensed to do business in the State of California. If the A.M. Best ratings are no longer available, the insurance ratings shall be based on equivalent ratings issued by an independent insurer company rating entity used by financial institutions for insurance rating purposes. 7.5 Board's Authority to Revise Insurance Coverage. The Board shall have the power and right to deviate from the insurance requirements contained in this Article 7 in any manner that the Board, in its discretion, considers to be in the best interests of the Association, provided that the Board shall maintain the minimum insurance requirements set forth in Civil Code section 5800 or in any successor statute thereto. If the Board elects to materially reduce the coverage from the coverage required in this Article 7, the Board EDNB\53295\996553.3 28 August 18, 2016