INSURANCE DISCLOSURE SUMMARY

Distribute a Summary. As required by Civil Code §1365(f), associations are required to annually distribute within 60 days of the start of the association's fiscal year a summary of the association's property, general liability, and earthquake and flood and fidelity insurance policies, that includes all of the following information about each policy:

1.  Name of the insurer

2.  Type of insurance

3.  Policy limits

4.  Amount of deductibles, if any

Notice of Changes. The association shall, as soon as reasonably practicable, notify its members by first-class mail if any of the policies have lapsed, been canceled, and are not immediately renewed, restored, or replaced, or if there is a significant change, such as a reduction in coverage or limits or an increase in the deductible, as to any of those policies. If the association receives any notice of nonrenewal of a policy and if replacement coverage will not be in effect by the date the existing coverage lapses, the association must immediately notify its members.

Required Language. The summary of insurance distributed to the membership must contain, in at least 10-point boldface type, the following statement:

This summary of the association's policies of insurance provides only certain information, as required by subdivision (e) of Section 1365 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the association's insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the association's policies of insurance may not cover your property, including personal property or, real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.

Updated by ADAMS KESSLER 7/14/2008