Insurance Coverage Policy for GHI Structures & Responsibility for Payment of Deductible

Article Type: 
Thursday, September 2, 2021

Insurance Coverage Policy for GHI Structures & Responsibility for Payment of Deductible

In accordance with each member’s Mutual Ownership Contract, GHI provides insurance on the structure of member's homes, both original unit and addition(s) including any new addition constructed by the current member, but not on personal property or upgrades to builder-grade* materials. The following is a statement of conditions and components covered for loss by GHI's insurer.

  • Main structure, all additions, porches, decks, porch roofs, permanent awnings are covered.
  • Settlement will be at replacement value, except if replacement will violate GHI rules. The member is responsible for the difference in value for upgrade or change. Examples: original windows, illegal wiring or plumbing installed by current member, structural code violation, or improper appliance installation.
  • GHI is responsible for the cost of meeting new code requirements as specified by the Code Official.
  • All permanent parts of a structure are covered up to limits of the policy. Finishes and appliances which were present when member purchased the unit are covered in full, including wall to wall carpeting; paneling; wall and floor tile; kitchen cabinets; appliances, including thru-wall air conditioners, built-in dishwasher, range, oven, refrigerator, garbage disposal, range hood, exhaust fan, clothes washer, clothes dryer; light fixtures; ceiling fans; plumbing fixtures. If any of these items were upgraded to quality or value above that of builder-grade* materials, settlement will reflect the value of the original item or the item which was replaced. The member will be responsible for the difference in value between the builder-grade* materials and the upgrade.
  • Salvageable appliances will be repaired and cleaned if possible. Specifically excluded are wall coverings; window treatments [vinyl mini-blinds are not excluded in Greenbelt Development Corp. apartments]; window mounted air conditioners; all nonattached microwave ovens; electrical appliances, except as listed above; area rugs; landscaping; fences; sheds.
  • GHI reserves the right to determine whether or not a claim shall be submitted to its insurer.
  • If a member has been denied use of the entire residence due to a covered loss, the GHI operating charges only are waived for a period from the date of the loss to the date the residence is restored to member's use. Real estate taxes, debt service, and all other charges must be paid on time by the member as usual.
  • If damage is caused by the negligence of the member or by persons living in or by the negligence of those visiting the member’s residence, the member is responsible for the cost of repairs up to the amount of $5,000  for an insured loss, and for the full cost of repairs for an uninsured loss.
  • Members are urged to contact their insurance agent for specifics and to obtain an HO-6 insurance policy for coverage of the following items, due to either an insured or uninsured loss:

-       Household and personal contents,

-       Improvements or betterments they have made to their units,

-       Boarding expenses due to the loss of use of their units,

-       The $5000 deductible in the event a claim is deemed to have been caused by the member’s negligence.

*builder-grade: average quality materials often used in production

Revised 9-2-2021