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104 <br /> (c) coverage that cannot be cancelled, invalidated or suspended on account of the conduct of <br /> any officer,director or employee of the Association without prior demand in writing that the Board <br /> cure the defect and the allowance of a reasonable time thereafter within which the defect may be <br /> cured by the Association or any Owner. <br /> Section 4. General Guidelines <br /> . All insurance policies purchased by the Board shall name Declarant as an additional insured and <br /> be with a company or companies licensed to do business in the State of North Carolina and holding <br /> a rating of "A VIII" or better by the current issue of Best's Insurance Reports. All insurance <br /> policies shall be written for the benefit of the Association and shall be issued in the name of and <br /> provide that all proceeds thereof shall be payable to the Association. Notwithstanding any of the <br /> foregoing provisions and requirements relating to insurance,there may be named as an insured, on <br /> behalf of the Association, the Association's authorized representative, who shall have exclusive <br /> authority to negotiate losses under any policy providing such insurance. <br /> Section 5. Insurance Proceeds <br /> . Subject to any limitations imposed by any applicable financing documents,the Association shall <br /> use the net proceeds of casualty insurance carried by it to repair and/or replace any damage or <br /> destruction of property, real or personal, covered by such insurance. Any balance from the <br /> proceeds of casualty insurance paid to the Association remaining after satisfactory completion of <br /> repair and replacement shall be retained by the Association as part of the general reserve fund for <br /> repair and replacement of the Common Areas and/or Maintenance Areas. <br /> Section 6. Insufficient Proceeds <br /> . If the insurance proceeds received by the Association are insufficient to reimburse the <br /> Association for, or to repair and/or replace, any damage or destruction to person or property <br /> covered by such insurance,the Board may levy a Special Assessment against the Owners to cover <br /> the deficiency. <br /> Section 7. Owner's Personal Property <br /> . Neither the Association nor Declarant shall be liable in any manner for the safekeeping or <br /> condition of any personal property belonging to or used by any Owner or his family,tenants,guests <br /> or invitees, located on or used at the Common Areas. Further, neither the Association nor <br /> Declarant shall be responsible or liable for any damage or loss to or of any personal property of <br /> any Owner, his family, tenants, guests or invitees located on or used at the Common Areas. Each <br /> Owner shall be solely responsible for all personal property and for any damage thereto or loss <br /> thereof, and shall be responsible for the purchase of, at such Owner's sole cost and expense, any <br /> casualty, liability or other insurance for damage to or loss of such property. <br /> Section 8. No Obligation to Insure Owners' Property <br /> . By virtue of taking title to a Lot within the Project, each Owner acknowledges that neither the <br /> Association nor Declarant has any obligation to provide any insurance for any portion of such Lot <br /> or any Dwelling Unit or other property located thereon. <br /> 33 <br />