President's Message - July 2006

Norman Salisbury
President

Dear Fellow Owners and Residents:

Your Board of Trustees has recently become acutely aware that some owners do not carry their own policies of property and liability insurance. Many of you may not be aware that the Association insures the building and the common areas but does not insure the interior of the units, owners' and residents' property within the units or the owners' or renters' liability. In our own experience, the cost of a condominium owner's policy of insurance that covers both property and liability is significantly minimal in comparison to the potential exposure to loss and liability. Accordingly, your Board of Trustees strongly encourages each owner and resident to obtain and maintain policies of property and liability Insurance.

There have been instances where a residents' personal property in their unit have been damaged or stolen. Without property insurance, the resident must absorb those losses themselves and may not look to the Association. Inasmuch as the Declaration defines floor and wall coverings as personal property, even water damage to carpet, wood floors, paint and wallpaper is the responsibility of each respective owner or resident. The Declaration specifically and explicitly limits the responsibility and liability of the Association in all cases of water damage to your property. In addition, an owner may also be liable for personal injury or property damage to third parties for owner's conduct within his or her unit. Again, the Association and its insurer would not be liable for such damage or injury. It is therefore prudent for every owner to obtain a policy of personal property and liability insurance.

While your Board of Trustees will not require owners to maintain their own insurance, your Board upon the consultation and advice of our attorney, is considering additional changes to the Rules and Regulations which will require renters, as a pre-condition to any lease or move-in permit to a tenant, or any owner in connection within any construction, that a policy of liability and property damage insurance be obtained by the owner or the tenant.

Enclosed please find Amendments, drafted by our attorney, to certain provisions of the Association's Rules and Regulations that relate to these insurance issues. Basically, the Rules require that the Association be named as an additional insured and that the insurer waive any rights of subrogation against the Association, other owners, tenants and guests, and that a pre-cancellation notice be given to the Association. Failure to obtain and provide to the Association a certificate that such insurance policies are in place under those circumstances would be considered a default under these Rules and Regulations.

We are hopeful that you will understand the benefits that we all will receive from having your own insurance. This will help to reduce overall costs of remediation and administration of the Association, as well as the frustration among owners when damage or injury is sustained. We encourage all of you to contact your insurance agents to explore obtaining this type of policy and to insure that the policies that you and your tenants have provide adequate coverage and comply with the Association Rules and Regulations.

Sincerely,