Section 2. Types of Policies

FCHOA Bylaws - Revision Date: 2022-05-20

The Association shall obtain and maintain the following insurance:

(a)      A master commercial insurance policy affording fire and extended coverage in an amount to cover the full replacement value of all structures or improvements on the Common Areas, and appropriate coverage on vehicles, equipment, and other assets of the Association.  Such policy shall contain a Special Form, All Risk amendment as well as a Law and Ordinance amendment.

(b)      A master liability policy of a combined single limit of at least Two Million ($2,000,000) Dollars covering the Association, its members, its agents, and employees. 

(c)      A blanket fidelity bond or employee dishonesty insurance policy, in accordance with Va. Code Ann. § 55.1-1827, insuring the Association against losses resulting from theft or dishonesty committed by the officers, directors or persons employed by the Association, or committed by the managing agent or employee of the managing agent.  Such bond or insurance policy shall provide coverage in an amount equal to the lesser of $1 million or the amount of the reserve balances of the Association plus one-fourth of the aggregate annual assessment income of the Association.

(d)      Directors’ and officers’ insurance to include coverage for any expenses and fees incurred by any of them in defending any suit or settling any claim, judgment, or cause of action to which any officer or director shall have been made a party by reason of their services as an officer or a director.

(e)      Workers Compensation Insurance necessary to satisfy the requirements of applicable laws.

(f)      Such other insurance policies as determined by the Board to be in the best interest of the Association.