EVANSTON SQUARE
EVANSTONE SQUARE
Homeowner Resources
Managed by AGM Real Estate Group, LLC
SUMMARY
Insurance Requirements
From Articles of Incorporation, Bylaws, and Declaration of Evanston Square Condominium Owners Association
The Insurance provisions from the Declaration, Bylaws, and Articles of Incorporation outline coverage requirements for both the Association and individual unit owners. Below is a structured summary:
Association Insurance Requirements
The Association is obligated to maintain comprehensive insurance coverage for the condominium, commencing no later than the first unit conveyance to a non-Declarant owner, to the extent reasonably available:
Property Insurance
Covers the entire condominium, including common elements and, optionally, equipment, improvements, and betterments in units installed by the Declarant or owners, against all risks of direct physical loss commonly insured.
Liability Insurance
Includes commercial general liability coverage for bodily injury and property damage arising from Association activities or common elements.
Fidelity Bonds
Required for officers, directors, or persons handling Association funds to protect against financial loss due to dishonesty.
Other Coverage
May include additional policies (e.g., directors and officers liability) as deemed necessary by the Board, subject to budget constraints.
Policy Standards
Policies must name the Association as the insured, include unit owners and mortgagees as additional insureds where applicable, and provide that no act or omission by a unit owner (unless acting on behalf of the Association) voids coverage.
Insurance Provisions & Special Conditions
Damage Apportionment
When damage affects both common elements and units, repair costs are pro-rated between the Association and affected owners based on the relative damage to common elements, units, and assigned limited common elements.
Restoration Obligation
The Association must promptly repair or replace insured portions of the condominium damaged or destroyed, unless the condominium is terminated, repairs are illegal, or 80% of owners (including those affected) vote against repair.
Insurance Proceeds
Proceeds from Association policies are used for repairs, with any excess distributed to owners or mortgagees based on their interests. If a unit is not repaired, its allocated interests are reallocated as if condemned.
Non-Covered Losses
Owners are responsible for losses or damages within their units not covered by the Association’s insurance, including those caused by their misconduct or that of their tenants, guests, or pets.
Mortgagee Protections
Mortgagees are entitled to notices of policy lapses, cancellations, or material changes and have rights to insurance proceeds for losses affecting their secured units.
Unit Owner Insurance Requirements
Each unit owner is responsible for obtaining personal insurance to cover items that the Association’s policies do not protect:
Personal Property & Improvements
Owners must ensure personal belongings, unit improvements, and betterments not covered by the Association’s policy.
Additional Liability Coverage
Owners are required to obtain liability insurance to cover incidents within their unit or caused by their actions, supplementing the Association’s coverage.
Loss Assessment Coverage
Owners should secure coverage for assessments resulting from uninsured losses or deductibles under the Association’s policies.
Owner’s Expense
All additional insurance is at the owner’s sole cost, with no obligation on the Association to cover individual unit-specific risks.
Insurance Policy Requirements & Compliance
Policy Specifications
Association policies must comply with RCW 64.34, meet industry standards, and include provisions to prevent invalidation due to owner actions or Association warranty failures.
Owner Compliance
Owners must provide proof of required insurance upon request and ensure their policies align with Association requirements to avoid gaps in coverage.
Board Oversight
The Board ensures Association policies are maintained and reviews coverage annually to adjust for inflation or changing risks, with authority to impose assessments for uninsured losses.
Enforcement
Failure to maintain required owner insurance may result in fines, assessments, or legal action by the Association, with costs (including attorney’s fees) collectible as a lien on the unit.
Claims Process
The Association represents owners in claims involving common elements, with proceeds distributed according to ownership interests or mortgagee rights.
KEY
TAKEAWAYS
ONE
The Association maintains comprehensive property and liability insurance for the condominium, while owners must secure personal coverage for their units and belongings.
TWO
Costs for damages are apportioned based on the extent of impact to common elements and units, with owners liable for uninsured losses caused by their actions.
THREE
Prompt repair of insured damages is mandatory unless specific exceptions apply, with proceeds managed by the Association.
FOUR
Owners must comply with insurance requirements, providing proof when requested, to avoid penalties or financial liability.
FIVE
Mortgagees have protections, including notice rights and priority in proceeds, ensuring their interests are safeguarded.
SIX
The Board has authority to enforce compliance, adjust coverage, and recover costs for non-compliance or uninsured losses through assessments and liens.