Coach 2013 Annual Report Download - page 321

Article 12
Insurance; Casualty; Condemnation
Section 12.1 Board Insurance. Except as otherwise provided in Section 12.1(g) hereof, the Board of Managers shall maintain the following
insurance with respect to the Common Elements:
(a) Insurance against loss customarily included in Special Causes of Loss property insurance, including loss or damage
by fire, building collapse and other such insurable hazards as, are insured against for other property and buildings similar to the Building in use, location,
height, and type of construction. Such insurance policy shall also insure costs of demolition and increased cost of construction, including, without limitation,
increased costs arising out of changes in applicable laws and codes regulating reconstruction following a loss (which insurance for demolition and increased
cost of construction shall be in an amount not less than $25,000,000); and covering the interests of the Condominium, the Board of Managers, all Unit
Owners, all Permitted Mortgagees (as a group), and all Declarant Net Lessees, as their respective interests may appear. In addition, the Special Causes of Loss
property insurance shall also provide flood (including sewer backup) and earthquake (including land subsidence) coverage, which flood and earthquake
coverages may contain a sublimit of $50,000,000 per occurrence and in the annual aggregate separately for each. The amount of such Special Causes of Loss
property insurance shall be not less than one hundred percent (100%) of the aggregate replacement cost value of the Common Elements, and such insurance
shall include Extra Expense and Expediting Expense coverage in such amounts as the Board of Managers, from time to time, may determine. Each such
insurance policy shall contain a removal or waiver of the co-insurance provisions and a replacement cost endorsement. Such coverage shall include Business
Interruption/Extra Expense. Such coverage shall not include any interior of any Unit, or any flooring fixtures, fit-out, improvements, furnishings, betterments
or personal property within or included as part of any Unit.
(b) [Intentionally omitted]
(c) Statutory Workers’ Compensation insurance and New York State Disability benefits insurance as required by law with
an all states endorsement and Employer’s Liability coverage with limits of not less than $1,000,000, covering any employees of the Condominium (provided,
however, that if the Board of Managers does not have any direct employees, such insurance shall be purchased on an “if any” basis);
(d) Comprehensive Boiler & Machinery insurance (if not part of the Special Causes of Loss property insurance) covering
all steam, mechanical, and electrical equipment, including without limitations, all boilers, chillers, unfired pressure vessels, piping and wiring, in the
minimum amount of $50,000,000 per accident on a combined basis covering all physical damage to the Common Elements, and such insurance shall include
loss of income, including Extra Expense and Expediting Expense coverage in such amounts as the Board of Managers, from time to time, may determine, and
covering the interests of the Condominium and any Sub-Board, and all Unit Owners, Permitted Mortgagees, and all Declarant Net Lessees, as their respective
interests may appear. Each such insurance policy shall contain a removal or waiver of the co-insurance provisions and a replacement cost endorsement.
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