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Damages and Insurance Deductibles

BALLSTON 880 CONDOMINIUM
UNIT OWNERS ASSOCIATION
RESOLUTION NO. 04-2007-02
DAMAGES AND INSURANCE DEDUCTIBLES



WHEREAS, Article III, Section 2 of the Bylaws ("Bylaws") of the Unit Owners Association of Ballston 880 Condominium ("Association'') provides that the Association Board of Directors ("Board") has all the powers and duties necessary for the administration of the Association;

WHEREAS, Article 1Il, Section 2(j) of the Bylaws requires that the Board obtain and carry  insurance against casualties and liabilities (as further provided in Article VII of the Bylaws), pay the premiums therefore and adjust and settle any claims there under;

WHEREAS, the master insurance policy of the Association contains a deductible provision under the terms of which the amount of each insured loss paid by the insurance carrier, whether in consequence of loss to the common elements, or to any unit, is reduced by a deductible amount;

WHEREAS, Article VIII, Section 2(b) of the Bylaws provides that the deductible for insurance policies purchased by the Board for fire or other casualty shall be a common expense of the Association, except that the amount of an insurance deductible maybe assessed against a unit owner or owners under Article VIII, Section 2(b) of the Bylaws;

WHEREAS, Article VI, Section I (b)(iv) of the Bylaws provides that the Board may assess any common expenses caused by the conduct of less than all those entitled to occupy the units or by their licensees or invitees;

WHEREAS, the Board deems it to be in the best interest of the Association to establish a policy to assess financial responsibility for payment of insurance deductibles if and when claims are filed under the Association's insurance policies and financial responsibility for payment of costs associated with repairing damage to units and the common elements.

NOW, THEREFORE, BE IT RESOLVED THAT the Board hereby adopts the following policy to govern the determination of financial responsibility for repairs when the damage falls below the amount of the insurance deductible and for the deductible when insurance claims are filed.

  1. Damages caused by circumstances originating from portions of the Condominium which the Association is responsible to maintain and repair pursuant to the provisions of Article VI, Section 5(a) of the Bylaws, shall be treated as a common expense.
  2. Damages caused by circumstances originating from portions of the Condominium which an individual unit owner is responsible to maintain and repair pursuant to Article VI, Section 5(b) of the Bylaws shall be paid by the unit owner.
  3. Damages to other units, common elements or limited common elements caused by the act, negligence, misuse or neglect, whether or not intentional, of the unit owner, his or her friends, family, tenants, or other invitees, shall be paid by the unit owner.
  4. If the cost of repairs is expected to exceed the Association's insurance deductible, a claim may be filed with the Association's insurance carrier. If the cost of repairs is expected to fall below the Association's insurance deductible, a claim may not be filed with the Association's insurance carrier. The Board shall determine the instances when a claim will be tiled.
  5. If the Association is responsible for the damages, the Association shall be responsible for any amount up to and including the Association's insurance deductible, and such cost shall be considered a common expense of the Association.
  6. If it is determined that a unit owner is responsible for the damages, that unit owner shall be responsible for any amount up to and including the Association's insurance deductible.
  7. If the Board makes demand fur reimbursement from a responsible unit owner, and if reimbursement is not received, the Board shall direct counsel to take legal action to recover the insurance deductible, plus any legal fees and costs expended in pursuing collection of the matter.
  8. The provisions of the Bylaws and Resolutions of the Board with respect to the payment of assessments, including the provision for the recovery of costs, interest, and attorneys' fees, shall be fully applicable to any assessment or charge made pursuant to the provisions of this policy resolution.