Correspondent Partner Guide - Wintrustmortgage.net

PARTNER GUIDE
An appropriate endorsement to the policy to cover any persons
who serve without compensation must be added if the policy would
not otherwise cover volunteers.
Existing Condos, Limited Review, and Small Projects: Proof of
fidelity insurance is not required.
Public Liability Insurance
The HOA must have a comprehensive policy of public liability insurance,
covering all of the common elements, commercial spaces, and public
ways in the condominium project. The insurance policy must contain a
“severability of interest” endorsement, precluding the insurer from
denying the claim of a condominium unit owner because of negligent acts
of the HOA or other unit owners. Coverage must also include all other
coverage’s in the kinds and amounts required by the agencies for
projects similar in construction, location, and uses. Liability coverage
must be for at least $1 million per occurrence for personal injury and/or
property damage.
PUD Insurance
In lieu of maintaining an individual hazard insurance policy on each PUD
unit, the PUD Corporation, HOA, or trust may maintain blanket hazard
insurance, providing, at a minimum, fire and extended coverage and all
other coverage in the kinds and amounts commonly required by the
agencies for developments similar in construction, location, and use.
The coverage must be in an amount equal to the full replacement value
of all of the PUD units without deductions for depreciation or
coinsurance, including the structural portions and fixtures owned by the
PUD unit owners. Insurance premiums from any blanket insurance
coverage must be a common expense of the PUD Corporation, HOA, or
trust and must be included in the regular common assessments of the
PUD unit owners. The coverage must name the PUD Corporation, HOA, or
trust as the insured for the benefit of the PUD unit owners.
Common Property Coverage
The PUD Corporation, HOA, or trust must have fire and extended
coverage for at least 100% of the replacement cost of the insurable PUD
common property. The insurance must name the PUD Corporation, HOA,
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