Greenwood Condominium

Greenwood Condominium 76 Northeastern Blvd. Unit 28A, Nashua, NH 03062

To: Greenwood Condominium Unit Owners From: Board of Directors & Great North Property Management RE: VERY IMPORTANT - Insurance Process and Unit Damages

This letter is to announce the amendments to the condominium documents relating to insurance have been passed, which impacts the process for unit damages, the responsibility of Greenwood, and the responsibilities of Unit Owners. We've included information regarding the insurance process and what it does and does not cover and some recommendations on how to coordinate your individual HO6 unit owner's policy with the Greenwood Master Policy. We've also included an insurance Q&A sheet which describes some different scenarios and how they're handled.

As provided for under the Greenwood Condominium By-Laws, Article VI "Insurance," the association retained a policy that provides coverage for all common and limited common elements including installed fixtures, interior walls, permanent alterations and additions within the units above the master policy deductible. This master policy does not allow coverage for any for any personal property, such as, drapes, furniture, fixtures, furnishings, or other personal belongings.

***IMPORTANT CHANGE TO THE MASTER POLICY***- Due to a number of claims resulting from careless behavior and in order to be able to obtain insurance, the Board was forced to increase the deductible to $10,000.

The Greenwood Condominium insurance deductible is now $10,000 per occurrence. Any loss (damage) in your unit below this deductible amount is the unit owner's responsibility, regardless of where the damage originated or who was at fault.

COVERAGE SUMMARY: If you take your unit and turn it upside down and shake it, anything that stays in place, the GW master insurance policy covers above the $ 10,000 deductible

The condominium documents now dictate that you must have your personal homeowner's insurance carrier cover your individual unit for this $10,000 deductible amount. These policies are typically referred to as H06 policies. All HO6 policies have a provision for such occurrences under the title "Building or Dwelling and Structures". It is also recommended that owners carry other insurance for unit contents, liability within your unit, loss use, and assessment insurance. An Owner's H06 policy will cover expenses up to the master policy's deductible of $10,000. But you need to inform your insurance company of its value (typically they automatically come with $1,000 in coverage). Contents insurance covers your furniture, etc. Liability insurance covers you should a guest slip and fall on an area rug in your unit, etc. Loss use helps cover your living expenses should your unit be deemed uninhabitable due to a loss. Assessment insurance covers your unit if there is a sudden assessment to cover catastrophic expenses that the Association may incur (not normal operating or reserve expenses).

Investor Owners: Personal liability coverage and the deductible is the responsibility of each unit owner. This would include loss of rental income. We also suggest you require the tenants to purchase an HO4 Tenant Policy.

These insurance policies are all fairly inexpensive, and will carry a far more manageable deductible in the case of a catastrophic loss affecting the interior of your unit. Whether the damage is great enough for the Greenwood insurance to kick in or not, having such a homeowner's policy will decrease your out of pocket expenses in the case of an unforeseen loss.

In the event you choose not to pursue individual homeowner's insurance coverage, you are still financially liable for the damages within your unit up to the $10,000 deductible. We want to emphasize that you are financially liable, regardless of where the damage originated or whether you were at fault of not. A lack of individual homeowner's insurance coverage does not release you from the obligation to maintain and repair your unit.

How to handle damages to your unit: If you incur damages due to water damage from a water pipe, toilet, washing machine leak, ice dam or building leak or some other non-water related issue, you should first call your own insurance carrier to file a claim. If the damage is greater than $10,000, then you or your agent would file a claim with the Association's insurance company through Great North Property Management. INSURANCE Q&A - GREENWOOD CONDOMINIUM

01) My upstairs neighbor's shower drain breaks and floods my bathroom and part of my bedroom. The damage to my unit is $13,500. My neighbor does not have an H06 policy. I have an H06 policy. Who pays what? A1) Your neighbor pays to fix his drain out of pocket. Your HO6 pays to repair your unit up to the $10,000 less your HO6 policy deductible (typically $500-$1,000), which you pay out of pocket. The Greenwood Master Insurance Policy pays the $3,500 difference.

02) My upstairs neighbor's shower drain breaks and floods my bathroom and part of my bedroom. The damage to my unit is $13,500. My neighbor has an H06 policy. I do not have an H06 policy. Who pays what? A2) Your neighbor pays to fix his drain out of pocket. You pay to repair your unit up to the $10,000 master insurance policy deductible out of pocket. The Greenwood Master Insurance Policy pays the $3,500 difference.

03) A common area pipe leaks in the hallway. My unit is damaged by the water. The total damage to my unit is $10,000. The damage to the common area is $13,000. I have an H06 policy. Who pays what? A3) The Association pays to repair the leak in the common area. The $10,000 deductible is shared between the Association and the unit owner based on percentage (%) of damages. The Association pays for the common area damages below the shared $10,000 master insurance policy deductible. Your HO6 policy pays for your unit damages below the shared $10,000 master insurance policy deductible less your HO6 policy deductible, which you pay out of pocket. The Greenwood Master Insurance policy pays the $13,000 difference. The unit owner and the Association are compensated with insurance proceeds based on percentage of damages.

04) My shower drain bursts and floods my downstairs neighbor's unit. The damage to my neighbor's unit is $12,500. My unit just needs a shower drain replacement at a cost of $400. I have an H06 policy and my neighbor has an H06 policy. Who pays what? A4) You pay to fix your shower drain out of pocket. Your neighbor's HO6 policy pays to repair his unit damages below the $10,000 master policy deductible, less his HO6 policy deductible, which he pays out of pocket. The Greenwood Master Insurance policy covers the $2,500 difference.

05) My shower drain bursts and floods my downstairs neighbor's unit. The damage to my neighbor's unit is $10,000. My unit just needs a shower drain replacement at a cost of $400. I do not have an H06 policy and my neighbor does not have an H06 policy. Who pays what? A5) You pay to repair your shower drain out of pocket. Your neighbor pays for his unit damages out of pocket.

06) The roof leaks and causes $11,000 damage to my unit. I have an H06 policy. Who pays what? A6) The Association pays to repair the roof. Your H06 pays to repair your unit damages below the $10,000 master insurance policy deductible less your HO6 policy deductible, which you pay out of pocket. The Greenwood Master Insurance Policy pays the $1,000 difference. It is more likely that the Association will pay the $1,000 out of operating rather than putting through a claim for only $1,000 putting additional risk on the insurability of the property.

07) The roof leaks and causes $6,000 damage to my unit. I have an H06 policy. Who pays what? A7) The Association pays to repair the roof. Your HO6 policy pays to repair your unit damaged below the $10,000 master insurance deductible, less your HO6 policy deductible, which you pay out of pocket. The Association's Master Insurance Policy does not apply.