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in a total amount of not less than the full
insurable replacement cost of the insured
property, less deductibles, but including
coverage sufficient to rebuild the insured
property in compliance with building code
requirements subsequent to an insured loss,
including: Coverage B, demolition costs; and
Coverage C, increased cost of construction
coverage. The combined total of Coverage B
and Coverage C cannot be less than 10% of
each insured building value, or $500,000,
whichever is less.
(2) General Liability Insurance: The
association shall maintain commercial general
liability insurance against claims and liabilities
arising in connection with the ownership,
existence, use, or management of the
property in a minimum amount of $1,000,000,
or a greater amount deemed sufficient in the
judgment of the board, insuring the board, the
association, the management agent, and their
respective employees and agents and all
persons acting as agents. The developer
must be included as an additional insured in
its capacity as a unit owner, manager, board
member, or officer. The unit owners must be
included as additional insured parties but only
for claims and liabilities arising in connection
with the ownership, existence, use, or
management of the common elements. The
insurance must cover claims of one or more
insured parties against other insured parties.
(3) Fidelity Bond: An association with 6 or
more dwelling units must obtain and maintain
a fidelity bond covering persons, including
themanaging agent and its employees who
control or disburse funds of the association,
for the maximum amount of coverage
available to protect funds in the custody or
control of the association, plus the association
reserve fund. The fidelity bond must be in the
full amount of association funds and reserves
in the custody of the association or the
management company.
(4) Director and Officers Coverage: The
board of directors must obtain directors and
officers liability coverage at a level deemed
reasonable by the board, if not otherwise
established by the declaration or bylaws.
Directors and officer’s liability coverage must
extend to all contracts and other actions taken
by the board in their official capacity as
directors and officers, but this coverage shall
exclude actions for which the directors are not
entitled to indemnification under the General
Not For Profit Corporation Act of 1986 or the
declaration and bylaws of the association. The
coverage shall include, but not be limited to,
coverage of: defense of non-monetary actions;
defense of breach of contract; and defense of
decisions related to the placement or
adequacy of insurance. The coverage shall
include as an insured: past, present, and future
board members while acting in their capacity
as members of the board of directors; the
managing agent; and employees of the board
of directors and the managing agent.
Common Interest Community
Associations
The CICAA clearly anticipates that an
association will purchase insurance coverage,
but a common interest community
association’s board members should review
the association’s community instruments to
determine what level of insurance the
association is responsible for maintaining.
Enforcement
Most declarations for both condominium and
common interest associations provide for the
enforcement of covenants and restrictions if
there has been a violation. Similarly, most
associations have adopted rules and
regulations and procedures for enforcing them.
Associations are authorized by law, after
affording alleged violators notice and an
opportunity to be heard, to levy and collect
reasonable fines for violation of the
declaration, by-laws, operating agreement (in
the case of common interest communities) and
rules and regulations of the association.
https://idfpr.illinois.gov/CCICO/