Article X — Insurance

Section 10.01 — Types of Insurance Coverage

The Master Association shall, at the discretion of the Board of Directors, purchase, obtain and maintain, with the premiums therefor being paid out of Common Funds, such insurance and bonds as the Board may, from time to time, determine to be necessary or desirable to adequately protect the Association, its directors, officers, and Members from liability arising out of or relating to the activities and actions of the Master Association and the Board in the discharge of its duties under the Governing Documents, including, for example, general liability insurance, directors and officers liability insurance, and workers’ compensation insurance. The Board shall also purchase and maintain fidelity bonds or insurance in an amount not less than one hundred percent (100%) of each year’s estimated annual operating expenses and shall contain an endorsement of any person who may serve without compensation.

Section 10.02 — Copies of Policies

Copies of all insurance policies (or certificates thereof showing the premiums thereon have been paid) shall be retained by the Master Association and shall be available for inspection by Owners at any reasonable time.

Section 10.03 — Adjustment of Losses

The Board is appointed attorney-in-fact by each Owner to negotiate and agree on the value and extent of any loss under any policy carried pursuant to Section 10.01, above. The Board is granted full right and authority to compromise and settle any claims or enforce any claim by legal action or otherwise and to execute releases in favor of any insured.

Section 10.04 — Obligation of Owners to Insure Their Residences, Units, and Personal Property

Each Owner of a Lot or other Separate Interest shall be responsible for obtaining his/her own policy of fire and casualty insurance with respect to such Lot or Separate Interest. Further, in any event, each Owner shall be responsible for obtaining his/her own insurance to cover: (i) furnishings, fixtures and personal property within such Owner’s Residence; and (ii) such Owner’s personal liability for committing negligent or tortuous acts while within the Development.