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The coverage limits for contents is the actual cash value of the contents owned in common up to a maximum of $60,000 per building. A unit owner's or occupant's contents coverage must be purchased under a separate policy. The association should notify unit owners of the benefits of a Condominium Master Policy. If a unit owner has purchased an individual Dwelling Policy that provides building coverage, the association should encourage the unit owner to contact the producer to determine if that coverage is needed. When insurance to value is purchased on the Condominium Master Policy, there may not be a need for individual unit policies. Any contents coverage that a unit owner has should remain in effect on a Dwelling Policy Form. If a unit owner's dwelling policy is purchased and/or renewed, it is excess over the coverage purchased under the Condominium Master Policy. Therefore, such purchase or retention of a dwelling unit owner's building coverage may not be necessary. Insureds and producers should review individual circumstances and coverages. In addition, a unit owner or the producer should consult with any existing mortgagees on an individual unit owner's policy to ensure that a mortgagee's mandated insurance requirement is being met. A unit owner or the producer should show the mortgagee evidence of the new Condominium Master Policy, documenting the amount of coverage. If a mortgagee determines that the coverage purchased under the Condominium Master Policy is insufficient to meet the mandatory purchase requirements, the mortgagee may insist that a separate unit owner's building coverage policy remain in force. Rates The rates for a Condominium Master Policy can be found on the Condominium Master Policy Rate Tables in the CONDO Section. Tentative rates will not be applied to a Condominium Master Policy. I Deductible Optional deductibles are available under this policy and no premium discount is offered unless an optional deductible is selected. The discount amount is expressed in dollars instead of percentages. (See RATE Section.) At the time of a loss, the deductible will be applied once for the entire building and not on a per unit basis. The deductible is applied separately to the building loss and to the contents loss. Expense Constant The current expense constant is applied once for the entire policy. After the premium has been calculated, do NOT multiply the expense constant by the number of units. CONDO 6 October 1992 e . . e . e