Community Management Associates, Inc. (CMA) has created requirements for all associations’ insurance policies. PROPERTY: Coverage must be 100% of the replacement cost of the physical structures. Replacement Cost and Guaranteed Replacement Cost is preferred yet may not always be available. Associations must do an evaluation to ensure that the coverage amount is equal to 100% of the replacement cost. A replacement cost appraisal might be considered to determine adequate coverage. Flood coverage should be included where applicable. Earthquake coverage is strongly recommended at a minimum of $10,000,000. GENERAL LIABILITY/UMBRELLA: The minimum coverage is $5,000,000 per the CMA contract. This is a total or combined amount of the GL and/or Umbrella policy. If an Umbrella policy is in place, it must also apply to the D&O coverage. High-rise buildings, any properties with multiple amenities, and associations which have a public presence such as retail, office, or mixed use must have at least $10,000,000 in total coverage. SUB-LIMITS: Sub-limits for assault and battery, sexual assault, and aggravated assault should be avoided whenever possible. If these sub-limits cannot be avoided, the CMA Director of Risk Management must be notified prior to the policy going into effect or prior to a new management contract being enacted. DIRECTORS AND OFFICERS: Coverage must be with a carrier which automatically includes coverage for CMA and the manager as an additional insured (not by endorsement). The policy must cover administrative acts such as HUD complaints or other non-lawsuit related claims against the board, association, or CMA. The minimum coverage must be $1,000,000. If an Umbrella Policy is in place, it must include D&O coverage. FIDELITY: Coverage must equal or exceed the total amount of funds the association has, plus 25% of the annual budget. For associations that pay once or twice annually, the minimum amount of coverage must equal the total amount of funds.