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91 ARTICLE IX INSURANCE Section 9.01 Ownership. All insurance policies upon the Common Elements and/or any other property of the Association shall be purchased by the Association, or its agent, for the benefit of the Association, the Owners (including Declarant for so long as Declarant shall retain title to any Lot or any other part of the Property) and the Owners' respective mortgagees as their interests may appear. Each Owner may, in his or her sole discretion, obtain additional insurance coverage upon his or her real and/or personal property at his or her sole expense. Section 9.02 Property Insurance. Any and all Buildings and Improvements located on any Common Elements and any and all personal property belong to the Association shall be insured in an amount equal to the maximum amount of their insurable replacement value, excluding foundation and excavation costs,or by ninety percent(90%)co-insurance blanket coverage or by such other form of policy as the Board of Directors shall deem appropriate. Such coverage shall afford protection from and against (a) loss or damage by fire or other hazards covered by a standard extended coverage endorsement, and(b) such other risks as the Board of Directors shall deem appropriate, including vandalism and malicious mischief. Section 9.03 Public Liability Insurance. Public liability insurance with respect to the Common Elements shall be purchased by the Association, or its agent, in such amounts and with such coverage as the Board of Directors shall deem appropriate. The Board of Directors may also purchase, from time to time, such additional types of insurance as it may deem necessary or desirable. To the extent available, each such policy shall include an endorsement providing coverage to each Owner and his family members,tenants,guests and invitees. Section 9.04 Fidelity Insurance or Bond. All Persons responsible for or authorized to expend funds or otherwise deal in the assets of the Association shall be bonded by a fidelity insurer to indemnify the Association for any loss or default in the performance of their duties in an amount equal to at least one-half(1/2)the Annual Assessment plus accumulated reserves. Section 9.05 Premiums. Premiums for contracts of insurance purchased by the Association shall be paid by the Association and charged ratably to the Owners as a component of Common Expenses. Section 9.06 Proceeds. All contracts of insurance purchased by the Association shall be for the benefit of the Association, the Owners and the Owners respective mortgagees as their interests may appear. All insurance proceeds shall be payable to the Association as insurance trustee under this Declaration. The sole duty of the Association as insurance trustee shall be to receive such proceeds as are paid and to hold the same in trust for the purposes stated herein. Section 9.07 Distribution of Insurance Proceeds. Proceeds of insurance policies purchased by the Association shall be payable to the Association, its successors or assigns, as insurance trustee, and shall be distributed to or for the benefit of the beneficial Owners in the following manner: (a) Expenses of the Trustee. All expenses of the insurance trustee shall be first paid or provisions made therefor. (b) Reconstruction or Repair. If the damage or destruction for which the insurance proceeds are paid is to be repaired or reconstructed, the proceeds, or such portion thereof as may be required for such purposes, shall be paid to defray the costs thereof. Any insurance proceeds in excess of the amount required to pay for the costs of repairs or reconstruction of the insured property, shall be retained by and for the benefit of the Association and held in a reserve account for capital improvements. (c) Failure to Reconstruct or Repair. If it is determined that the damage or destruction for which the insurance proceeds are paid shall not be repaired or reconstructed, then the said 16