SUMMIT·RIDGE
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):

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):

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)

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)

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.)

2026 (deductible change effective 08/01/2026)

A letter from ABI Insurance (Vern Newcomb, Habitational Director; 503.292.1580) titled "EFFECTIVE 08/01/2026- Insurance Deductible Change to $10,000" describes the Association's current master policy (Source: 8-1-2026-Insurance-Deductible-Change.md, p. 1). The letter is a broker summary, not a policy or certificate; it refers the reader to "the certificate" and "the policy" for full terms, and neither is in source/.

Owner (HO6) coverages the letter describes (Source: ABI letter, p. 1):

Coverage Letter's description Minimum coverage limit stated
Building (Dwelling) Entire unit and betterments and improvements Agent & owner evaluate limit (recommend coverage buffer)
Loss Assessment Owner's responsible share of damage to common areas in a covered loss; "not meant to cover special assessments - maintenance driven" Recommend max limit available
Personal Property Personal property damage, pack up, or storage costs; the Association has no coverage for owners' property Owner evaluates limit
Personal Liability Owner negligence damaging someone else's property or creating injury; other owners' insurers could subrogate against the owner $500,000 minimum recommendation (tenants law may only require minimum of $100k)
Loss of Use or "Loss of Rents" Additional costs to stay elsewhere if the unit is not habitable; the Association's policy has no such coverage ALS (Actual Loss Sustained), 12-18 months recommended
Back up of Sewer & Drain and Overflow Sewer line backup or overflow (sinks, washers, toilets); typically added as an endorsement Agent & owner evaluate limit (recommend coverage buffer)

Tenants or renters need an HO4 renters' policy for personal property, personal liability, and additional living expenses (Source: ABI letter, p. 1).

Earthquake coverages the letter describes (Source: ABI letter, p. 2): Earthquake Loss Assessment Coverage (the Association's deductible when assessed to owners); Earthquake Coverage on Personal Property; Earthquake "Loss of Use" Coverage; Earthquake Building Property Coverage (interior of unit, or components not covered by the Association's policy; agent and owner evaluate limit). To estimate earthquake limits, the letter says to calculate the owner's responsibility from the owner's percentage of share in the governing documents and to estimate higher if the Association does not insure to the full insurable limit.

The $10,000 deductible equals the cap in Bylaws Article XII § 1 ("the lesser of $10,000 or 1% of policy face value"), because 1% of $9,776,400 is well above $10,000 (Source: ABI letter, p. 1; Bylaws Article XII § 1). The 10% earthquake deductible is the same percentage shown on the 2021-2022 and 2023-2024 certificates.

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).

Conflicts

Sources