Coverages

• Insurer: State Farm Fire and Casualty Company

• Policy Type: Residential Community Association — Businessowners Coverage Form

• Coverage: All 63 buildings in the community, plus auxiliary structures (mailboxes)

• Valuation: Guaranteed Replacement Cost — State Farm pays the actual cost to repair or replace damaged buildings regardless of the insured limit

• Inflation Protection: Coverage limits adjust automatically using an inflation index (currently 278.3)

• Business Personal Property: $49,600 (HOA-owned contents)

• Basic Deductible: $4,000 (applies to most covered losses)

• Wind/Hail Deductible: 5% of the insured value of each damaged building — approximately $40,000 per building

• Equipment Breakdown: $2,500

• Employee Dishonesty: $250

• Money and Securities: $250

The wind/hail deductible is the most significant financial exposure for the community. See our Loss Assessment Coverage page for what this means for you as a homeowner.

• Collapse: Included

• Equipment Breakdown: Included

• Water Backup (Sewer or Drain): Included

• Glass Expenses: Included

• Debris Removal: 25% of covered loss

• Increased Cost of Construction: 10% (covers code upgrade costs when rebuilding)

• Preservation of Property: 30 days

• Fire Department Service Charge: $5,000

• Newly Constructed Buildings: $25,000

• Outdoor Property: $5,000

• Loss of Income and Extra Expense: Actual loss sustained, up to 12 months

• Business Liability (per occurrence): $2,000,000

• General Aggregate: $4,000,000

• Products/Completed Operations Aggregate: $4,000,000

• Medical Expenses (per person): $5,000

• Damage to Rented Premises: $3,000,000

• Directors and Officers Liability: $1,000,000 per occurrence / $1,000,000 aggregate

• Employee Dishonesty: $25,000

• Directors and Officers Liability: Included (covers board members acting within scope of their duties)

• Hired Auto Liability: Included

• Computer Equipment (Inland Marine): $10,000

• Terrorism Coverage: Included per federal Terrorism Risk Insurance Act

• Cyber incidents — unauthorized access, malware, denial of service attacks are excluded (property and liability)

• Flood — surface water, tidal water, and water below ground are not covered

• Sewer backup is covered; rising groundwater is not

• Personal property inside individual units

• Improvements and betterments made by individual owners beyond original fixtures

• Personal liability for individual homeowners

• Individual homeowners should maintain their own HO-6 policy which covers these gaps, and should include loss assessment coverage of at least $20,000