Section A. The Association shall carry all risk, liabilitv and, if applicable, workmen's compensation insurance coverages pertinent to the ownership, use and maintenance of the common elements of the Condominium Project. and such insurance, other than title insurance, shall be carried and administered in accordance with the following provision:
(1) All such insurance shall be purchased by the Association for the benefit of the Association, and the co-owners and their mortgagees, as their interest may appear, and provision shall be made for the issuance of certificates of mortgagee endorsements to the mortgagees of co-owners. Each co-owner may obtain insurance coverage at this own expense upon his unit. It shall be each co-owner's responsibility to obtain insurance coverage for his personal property located within his unit or elsewhere on the Condominium Project, for his personal liability for occurrences within his unit or upon limited common elements appurtenant to his unit and for alternate living expenses in the event of fire, and the Association shall have absolutely no responsibility for obtaining such coverages. The Association and all co-owners shall use their best efforts to see that all property and liability insurance carried by the Association or any co-owner shall contain appropriate provisions whereby the insurer waives its right of subrogation as to any claims against any co-owner or the Association.
(2) All common elements of the Condominium Project shall be insured against fire and other perils covered by an all risk policy of insurance, in the amount equal to the maximum insurable replacement value, excluding foundation and excavation costs as determined annualy by the Board of Directors of the Association. Such coverage shall also include interior walls within any unit and the pipes, wires, conduits and acts contained therein and shall further include all fixtures, equipment and trim within a unit which were furnished with the unit as standard items in accordance with the plans and specifications thereof as are on file with the Association (or such replacements thereof as do not exceed the cost of such standard items). Any improvements made by a co-owner within his unit shall be covered by insurance obtained by and at the expense of such co-owner; provided that, if the Association elects to include such improvements under its insurance coverage, any additional premium cost to the Association attributable thereto shall be assessed to and borne solely by said co-owner and collected as a part of the assessments against said co-owner under Article II hereof.
(3) All premiums for insurance purchased by the Association pursuant to these Bylaws shall be expenses of administration.
(4) Proceeds of all insurance policies owned by the Association shall be received by the Association, held in a separate account and distributed to the Association, and the coowners and their mortgagees as their interest may appear; provided, however, that whenever repair or reconstruction of the Condominium Project shall be required as provided in Article V hereof, the proceeds of any insurance received by the Association as a result of any loss requiring repair or reconstruction shall be applied to such repair or reconstruction and in no event shall hazard insurance proceeds by sued for any purpose other than for repair, replacement or reconstruction of the Condominium Project unless all of the institutional holders of first mortgage liens on any units have given their prior written approval.
Section B. Each co-owner, by ownership of a unit in the Condominium Project, shall be deemed to have appointed the Association as his true and lawful attorney-in-fact to act in connection with all matters concerning the maintenance of all risk, liability and, if applicable, workmen's compensation insurance coverage pertinent to the Condominium Project, his unit and the common elements appurtenant thereto with such insurer as may, from time to time, provide such insurance for the Condominium Project. Without limitation on the generality of the foregoing, the Association as said attorney shall have full power and authority to purchase and maintain such insurance, to collect and remit premiums therefor, to collect proceeds and to distribute the same to the Association, the co-owners and respective mortgagees, as their interests may appear (subject always to the Condominium Documents), to execute releases of liabilitv and to execute all documents and to do all things on behalf of such co-owner and the Condominium Project as shall be necessary or convenient for the accomplishment of the foregoing.
