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6. 1. F. - Page 63
<br />Section 9.2 Boiler and Machinery Insurance The Association shall obtain a policy of
<br />Boiler and Machinery Insurance, if applicable, for any items listed below which are not covered in or as
<br />part of the fire and casualty insurance listed in Section 9. 1, insuring the Owners, including the
<br />Association, against loss or damage to or because of boilers and other machinery, including but not
<br />limited to, all machinery and equipment for heating, ventilating, air conditioning, power generation and
<br />similar purposes (including, but not limited to, loss or damage by fire, vandalism, malicious mischief,
<br />sprinkler leakage, lightning, windstorm, water and other special extended coverage risks and the costs of
<br />demolition and debris removal) equal to full replacement value without deduction for depreciation with an
<br />"agreed amount" endorsement or its equivalent, if available, or an "inflation guard" endorsement payable
<br />to the Association.
<br />Section 9.3 Liability Insurance The Association shall obtain and maintain a policy or
<br />policies of Comprehensive General Public Liability Insurance with combined single limit of Bodily Injury
<br />and Property Damage Liability limits not less than Three Million Dollars ($3,000,000) subject to the
<br />Board's good faith determination of availability and cost - effectiveness in relation to the risk and premium
<br />to be charged for such coverage; provided, however, under no circumstances may the minimum amounts
<br />of coverage be less than that specified in Civil Code Section 1365.9(b)(2). Such policies shall include all
<br />of the following extensions of coverage: Products /Completed Operations, Independent Contractors,
<br />Blanket Contractual Liability, Broad Form Property Damage, Host Liquor Liability, Non -Owned and
<br />Hired Automobile Liability, Employees as Additional Insureds and Personal Injury Liability (Libel,
<br />Slander, False Arrest and Wrongful Eviction) with the "Employee Exclusion" deleted. Such policies shall
<br />name as insured and shall separately protect the Owners, the Association, Declarant, and the Board
<br />including their respective officers, directors, partners, agents, members, employees (including any
<br />manager appointed hereunder) and their successors and assigns (both individually and as a class) against
<br />any liability to the public including any Owner and his successors, assigns, tenants or lessees.
<br />Any tort cause of action against any Owner arising solely by reason of an ownership interest as a
<br />tenant in common of the Common Area shall be brought only against the Association, pursuant to Section
<br />1365.9 of the Civil Code, and not against any such Owner, if
<br />(a) The Association maintained and has in effect for the tort cause of action, one or
<br />more policies of insurance including coverage for general liability of the Association; and
<br />(b) The coverage described in (a) above is in the following minimum amounts:
<br />(1) At least Two Million Dollars ($2,000,000) if the Development consists
<br />of one hundred (100) or fewer units; or
<br />(2) At least Three Million Dollars ($3,000,000) if the Development consists
<br />of more than one hundred (100) units.
<br />Reference is made to Civil Code Section 1365.9 for further detail regarding statutory minimum
<br />requirements for Association liability insurance.
<br />Section 9.4 Board Members and Officers Liability The California Civil Code may
<br />provide limited civil liability protection for volunteer directors and officers in a condominium owners
<br />association. Therefore, the Association shall maintain a policy or policies insuring the Owners,
<br />individually and collectively, against claims arising out of or based upon negligent acts, errors, omissions
<br />or alleged breaches of duty of any director or any officer while acting in their capacity as such in the
<br />amount of Five Hundred Thousand Dollars ($500,000) for each occurrence if the Development consists of
<br />100 or fewer separate interests or at least One Million Dollars ($1,000,000) for each occurrence if the
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<br />CCRS -One Marina. docx
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