October 23, 1997


All Members
Gateview Homeowners’ Association
c/o Ms. Cathy Roberts
555 Pierce St., CML-1
Albany, CA 947706

Re: Insurance Disclosure Letter

Dear Association Members:

This office is general counsel to Gateview Homeowners’ Association. Your Board of Directors and general manager have asked me to write this letter to make disclosures about the Association’s insurance coverage, as required by Civil Code 1365 (e). This updates our insurance disclosure letter of October 30, 1996.

Civil Code 1365 (e) requires the Association to inform its members upon issuance or renewal of the insurance policies, and at least annually, as to the amount, type of liability insurance and amount of deductibles, if any. Also, information regarding property, earthquake and flood insurance must be disclosed.

Gateview Homeowners’ Association has renewed their insurance with Travelers’ Insurance Co. which acquired Aetna Casualty & Surety Co. of America. Gateview carries property coverage with blanket limits of $65,240,000 with a $5,000 deductible; commercial general liability insurance of $2,000,000 annual aggregate and $1,000,000 per an occurrence with no deductible; and has purchased an umbrella coverage from Great American Insurance Co. of $10,000,000 per an occurrence and $10,000,000 aggregate, in excess of the underlying coverage with a deductible of $10,000. The umbrella coverage is in addition to the limits provided by the commercial general liability coverage. The Association declined to pick up earthquake coverage this year; however, a Water Damage Extension Endorsement was added to the property coverage which broadens the definition of water damage to include damage from (1) water that backs up or over flows from a sewer, drain or sump; (2) water under the surface pressing on, flowing or seeping through foundations, basements, doors and other openings; and (3) water above the ground surface that is not overflow from a natural body of water. Full policy limits are available for these damages and the policy deductible would apply.

This summary of the Association’s policies of insurance provides only certain information, as required by subdivision (e) of Section 1365 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the Association’s insurance policies and upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the Association maintains the policies of insurance specified in this summary, the Association’s policies of insurance may not cover your property, including personal property or, real property improvements to or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.

I hope this letter will help you understand the Association’s insurance coverage, and your own responsibilities for purchasing insurance coverages for yourselves.

Very truly yours,



Jane K. Penhaligen