Brandywine Condominium Association

DECLARATION OF CONDOMINIUM as adopted January 2, 2006
and amended December 2, 2008, December 7, 2009 and January 23, 2012

6. INSURANCE. The following provisions shall govern insurance covering the Condominium:

A Purchase, Custody and Payment of Policies.

(1) Purchase. Insurance policies covering the condominium property shall be purchased by the Association and be issued by an insurance company authorized to do business in Florida.

(2) Named insured.
The named insured shall be the Association individually and as agent for Owners of Units covered by the policy, without naming them, and as agent for their mortgagees, without naming them.

(3) Copies to Mortgagees. The Association shall furnish one copy of each insurance policy, or a certificate evidencing such policy, and endorsements thereto, to each First Mortgagee if requested in writing.

B. Coverage. The Association shall maintain insurance as deemed appropriate by the Board, which may contain reasonable deductible limits, covering the following:

(1) Casualty. The building(s) as defined by the Act, and improvements on the common elements shall be insured in an amount not less than 100% of the replacement value thereof, excluding a reasonable deductible, foundation and excavation costs. Such coverage shall afford protection against:

(a) Loss or damage by fire, hurricane and other hazards covered by a standard extended coverage endorsement.

(b) Such other risks as from time to time are customarily covered with respect to buildings similar in construction, location and use, including but not limited to vandalism and malicious mischief.

(2) Liability. Comprehensive general public liability and owned and non-owned automotive liability insurance covering loss or damage resulting from accidents or occurrences on or about or in connection with the condominium property or adjoining driveways and walkways, or any work, matters or things related to the condominium property or this Declaration and its exhibits, with such coverage as shall be required by the Board and with a cross liability endorsement to cover liabilities of the Unit Owners as a group to any Unit Owner, and vice versa.

(3) Workers' Compensation

(4) Flood Insurance

(5) Fidelity Insurance/Fidelity Bonds. The Association shall obtain and maintain adequate insurance or fidelity bonding of persons who control or disburse funds of the association. The fidelity bond or insurance policy shall be in an amount necessary to cover the maximum funds of the Association that will be in the custody of the Association or its managing agent at any one time and in no event less than the minimum levels established by the Act.

(6) Directors and Officers Liability

(7) Umbrella Liability in an amount as the Board shall determine from time to time to be desirable.

(8) Other Insurance as the Board may determine from time to time to be desirable.

(9) Deductible. The Association shall pay the deductible applied to any loss if the damage is to an element to be maintained or replaced by the Association. The Unit Owner will pay the deductible for any loss if the damage is to an element to be maintained or replaced by the Unit Owner.

When appropriate and obtainable, each of the foregoing policies shall waive the insurer's right to:

(a) subrogation against the Association and against the Unit Owners individually and as a group

(b) the clause that reserves to the insurer the right to pay only a fraction of any loss in the event of co-insurance or if other insurance carriers have issued coverage upon the same risk

(c) avoid liability for a loss that is caused by an act of the Board, or by a member of the Board or by one or more Unit Owners.

(10) Not included in the coverage maintained by the Association are the following:

Floor, wall, and ceiling coverings, electrical fixtures, appliances, air conditioner or heating equipment, water heaters, water filters, built-in cabinets and countertops, and window treatments, including curtains, drapes, blinds, hardware, and similar window treatment components, or replacements of any of the foregoing which are located within the boundaries of a unit and serve only one unit and air conditioning compressors that service only an individual unit, whether or not located within the unit boundaries. The foregoing is intended to establish the property or casualty insuring responsibilities of the Association and those of the individual unit owner and do not serve to broaden or extend the perils of coverage afforded by any insurance contract provided to the individual unit owner

C. Additional Provisions. Policies of property damage insurance shall provide that such policies may not be cancelled or substantially modified without at least thirty (30) day prior written notice to the insured, including mortgagees of Units requesting same. Prior to obtaining any policy of property insurance or any renewal thereof, the Board may obtain an appraisal of the full replacement value of the building and the insured improvements on the common elements including the Units and the common elements therein, without deduction for depreciation, for the purpose of determining the amount of insurance to be effected pursuant to this section.

D. Premiums. The Association as a common expense shall pay premiums upon insurance policies purchased by the Association, except that the amount of increase in the premium occasioned by misuse, occupancy or abandonment of any one or more Units or their appurtenances or of the common elements by particular Unit Owners shall be assessed against and paid by such Owners.

E. Insurance Share of Proceeds. Insurance policies obtained by the Association shall be for the benefit of the Association, the Unit Owners and their mortgagees, as their interests may appear.

(1) Common Elements. Proceeds on account of damage to the common elements shall be held in undivided shares for each Unit Owner, such shares being the same as the undivided shares in the common elements appurtenant to each Unit.

(2) Units. Proceeds on account of damage to Units shall be held in the following undivided shares:

(a) When the building is to be restored - for the Owners of damaged Units in proportion to the cost of repairing the damage suffered by each Unit Owner, which cost shall be determined by the Association.

(b) When the building is not to be restored - an undivided share for each Unit Owner, such share being the same as the undivided share in the common elements appurtenant to their Unit.

(3) Mortgagees. No mortgagee shall have any right to determine or participate in the determination as to whether or not any damaged property shall be reconstructed or repaired, and no mortgagee shall have any right to apply or have applied to the reduction of a mortgage debt any insurance proceeds except distributions thereof made to the Unit Owner and mortgagee pursuant to the provisions of this Declaration.

F. Distribution of Proceeds. Proceeds of insurance policies received by the Association or other named insured shall be distributed to or for the benefit of the beneficial Owners in the following manner:

(1) Reconstruction or Repair. If the damage for which the proceeds are paid is to be repaired or reconstructed, the remaining proceeds shall be paid to defray the cost thereof as elsewhere provided herein.

(2) Failure to Reconstruct or Repair. If it is determined in the manner elsewhere provided that the damage for which the proceeds are paid shall not be reconstructed or repaired, the remaining proceeds shall be distributed first to Mortgagees, and the balance, if any, to the beneficial Owners.

(3) Certificate. In making distribution to Unit Owners and their mortgagees, any named insured may rely upon a certificate of the Association made by the President and Secretary as to the names of the Unit Owners and their mortgagees and their respective shares of the distribution.

G. Association as Agent. The Association is hereby irrevocably appointed agent for each Unit Owner and for each Owner of a mortgage or other lien upon a Unit and for each Owner of any other interest in the condominium property to adjust claims arising under insurance policies purchased by the Association and to execute and deliver releases upon the payment of claims.

H. Unit Owner's Personal Coverage. The insurance purchased by the Association shall not cover claims against an Owner due to accidents occurring within his Condominium Unit nor those portions of the Condominium Property that the Association is not obligated to insure pursuant to the Act, nor casualty or theft loss to the contents of an Owner's Unit. It shall be the obligation of the individual Unit Owner if such Owner so desires to purchase and pay for insurance upon their personal property for their personal liability and living expense and for flood damage to their personal property.

I. Benefit of Mortgagees. Certain provisions in this section 6 entitled "Insurance" are for the benefit of mortgagees of Condominium Units and may be enforced by such mortgagees.

Association address

Brandywine Condominium Association
1398 S. Brandywine Circle
Fort Myers, FL 33919

Phone: 239-481-2326
Fax: 239-481-0744