Financial

Insurance

The Association and individual Owners each carry distinct insurance obligations.

Association policies (required)

The Board must obtain and maintain (Source: Declaration Article II § 3.F; Bylaws Article XII):

Public liability and property damage on Common Area: not less than $1,000,000 per person, per occurrence; not cancellable or substantially modifiable without at least 10 days' written notice to the Association.
Fire and extended-coverage casualty (including vandalism and malicious mischief) on each Building Structure and Common Area improvements: 100% of replacement cost (blanket basis permitted).
Casualty policy should include (if reasonably available) (a) waiver of subrogation by the insurer against the Board, any Owner, or any Owner's guest, and (b) waiver of the insurer's right to repair/reconstruct in lieu of paying cash.
Director and Officer (D&O) insurance — at the Board's discretion (Source: Bylaws Article XII § 2; Rules and Regulations Insurance section).
Fidelity insurance for officers, directors, trustees, employees, and others handling Association funds (Source: Rules and Regulations Insurance section).
Workers' compensation to the extent applicable laws require (Source: Rules and Regulations Insurance section).

Policies should be written by an insurer with at least a "B" general policyholder's rating and "III" financial size category in Best's "Key Rating Guide", and may carry a reasonable deductible up to the lesser of $10,000 or 1% of policy face value, with the deductible added to face value (or an "endorsement for full replacement cost") to meet the replacement cost requirement (Source: Bylaws Article XII § 1). The Board reviews insurance coverage at least every two years and seeks an "inflation guard" endorsement if reasonably available (Source: Bylaws Article XII § 3).

Premiums are a common expense (Source: Bylaws Article XII § 3). The Association may not bring an Owner's or mortgagee's insurance into contribution with the Association's coverage (Source: Bylaws Article XII § 1; Declaration Article II § 3.G).

Owner policies (required)

Each Owner must obtain and maintain (Source: Declaration Article II § 3.G; Rules and Regulations Insurance):

Public liability and property damage on the Lot: not less than $500,000 per person, per occurrence.
Fire and extended-coverage casualty (including vandalism and malicious mischief) on all insurable improvements on the Lot other than the Building Structure: 100% replacement cost.
Casualty insurance on the Owner's personal property.
(For Owners who rent) liability insurance specific to tenant occupancy, with limits set from time to time by the Board, naming the Association as additional insured (Source: Second Amendment 2B (Rental Restrictions) § M(3)(d); see Rentals).

Owners may not obtain the coverages required of the Association under § 3.F, and Owner (or mortgagee) coverage may not be brought into contribution with the Association's (Source: Declaration Article II § 3.G).

Historical Evidence of Insurance

2021–2022 (recorded 08/03/2021)

Agency: Creative Insurance Marketing Company (Tigard, OR)
Carriers: Nationwide Assurance (BOP); Nationwide Mutual (umbrella); Hartford Fire (fidelity)
Term: 08/01/2021 – 08/01/2022

Coverage	Amount	Deductible
Blanket property (6 buildings / 21 units), special form, replacement cost	$5,949,700	$5,000
Earthquake, replacement cost	$5,949,700	10%
Directors & Officers liability	$1,000,000	N/A
General liability per occurrence	$1,000,000	N/A
General liability aggregate	$2,000,000	N/A
Commercial umbrella per occurrence/aggregate	$1,000,000	N/A
Master fidelity package	$300,000	$1,000

(Source: Master association insurance certificate.md — ACORD 27.)

2023–2024 (recorded 07/26/2023)

Agency: Sandin Insurance Group (Portland, OR)
Carriers: Nationwide Mutual; Hartford Fire (fidelity)
Term: 08/01/2023 – 08/01/2024

Coverage	Amount	Deductible
Blanket property (6 buildings / 21 units), special form, replacement cost	$8,284,800	$5,000
Earthquake, replacement cost	$8,284,800	10%
Directors & Officers liability	$1,000,000	N/A
General liability per occurrence	$1,000,000	N/A
General liability aggregate	$2,000,000	N/A
Commercial umbrella per occurrence/aggregate	$1,000,000	N/A
Master fidelity package	$300,000	$1,000

(Source: Summitridge TH Evidence Of Property Insurance 23-24.md — ACORD 27.)

Budgeted insurance expense

Year	Insurance line (acct 6061)
2022	$15,000
2023	$16,000
2024	$16,000
2025	$22,069
2026	$20,300

(Source: budget documents.)

Insurance proceeds use restriction

So long as required by FHLMC, hazard insurance proceeds for Common Properties losses may not be used for any purpose other than repair/replacement/reconstruction of those Common Properties (Source: Declaration Article XIII § 4.D).

Eligible Holder notice

Lapse, cancellation, or material modification of any Association insurance policy or fidelity bond requires written notice to Eligible Holders (Source: Declaration Article XIII § 1.D; see Mortgagee Rights).

Sources

source/2025.07.07_summitridge townhomes_amended and restated declaration.md — Article II § 3.F/G; Article XIII
source/590 Summitridge Bylaws.md — Article XII
source/Master association insurance certificate.md
source/Summitridge TH Evidence Of Property Insurance 23-24.md
source/2026-0304-SRTHHOA-Rules and Regulations.md — Insurance section
source/590 2nd Amend to Dec - Rent Restrict.md — § M(3)(d)
Budget documents