The Mortgagor agrees that as of the date of the Authority's purchase of the Mortgage Loan, it will obtain and keep in force such insurance as the Authority may
from time to time require. The owner must submit an annual Notification of Compliance Certification.
The specific insurance required by the Authority is as follows:
1) A limit of property insurance shall be sufficient, except for deductible, to repair or replace the buildings, improvements or betterment to the buildings
and contents.
2) The deductible clause may not exceed $5,000 per loss on any policy or an acceptable alternative that the Authority approves.
Alternate amount: $_____________ Initials: __________
3) Loss of rents insurance equal to one year's rental income.
4) Property insurance must be written on a building special form on replacement cost basis satisfactory to the Authority. An agreed amount provision is
acceptable to the Authority.
5) When the Mortgagor becomes aware that the Mortgaged Property is exposed to any appreciable hazard against which the "Special Form" does not
afford protection, the Mortgagor shall advise the Authority of the nature of such hazard and the added coverage, if any, which should be obtained. In
such event or in the event the Authority becomes aware that the Mortgaged Property is exposed to any appreciable hazard against which the "Special
Form" does not afford protection, the Authority may require the Mortgagor to obtain such added coverage, in accordance with the terms of the
Mortgage as the Authority shall deem necessary or, if the Mortgagor fails to obtain such coverage, the Authority may obtain the same and charge the
premium therefore to the Mortgagor.
6) If there is a steam boiler or other pressurized vessel in operation in connection with the premises, boiler insurance is required and should provide a
minimum of $250,000 limit per accident per location.
7) Flood Insurance in the amount specified in the Housing Assistance Payments Contract, but not less than the amount specified below, must be provided
if the Mortgaged Property is located in a community for which flood insurance has been made available under the provisions of the Flood Disaster
Protection Act of 1973 and which is located in a designated special flood hazard area. Such flood insurance shall be in a form of the standard policy
issued by a member of the National Flood Insurers Association or in the form of a policy which meets the criteria set forth in the guidelines published
by the Flood Insurance Administration in the Federal Register on July 17. 1974. The minimum amount of flood insurance required is the lowest of the
following:
a. the full replacement cost value of the building(s), improvements and contents secured by the Mortgagor;
b. the maximum amount of flood insurance available on the date the Mortgage was filed on record.
8) Comprehensive General Liability Insurance shall be provided and maintained with a combined single limit of at least $1,000,000 per occurrence for
bodily injury and property damage, personal and advertising injury $1,000,000 each occurrence, fire damage liability $50,000, medical expense limit
$5,000, and general aggregate $2,000,000. Any proposed recommendations or exclusions beyond those found in the Comprehensive General Liability
form must be acceptable and approved by the Authority.
9) Worker's Compensation Insurance will be provided in accordance with the New Hampshire Compensation Act as amended. It must cover all owners’
operations in the state.
10) General requirements shall apply to each and all policies required by the Authority. Each policy will contain an endorsement stating that the policy
will not be canceled, materially changed, or non-renewed without sixty (60) days' written notice before the effective renewal date. However, for
nonpayment a ten (10) day notice is acceptable. All notices to be sent to: New Hampshire Housing, PO Box 5087, Manchester, New Hampshire
03108. All policies must be issued by companies licensed to do business in the state of New Hampshire or by companies not so licensed but which
have been approved by the New Hampshire Commissioner of Insurance as Surplus Line Insurers. Policies will include the Authority as Mortgagee.
The owner shall require property management firms and contractors which it may employ to provide and maintain insurance in types and amounts
necessary to not relieve the owner of any obligation to hold harmless the Authority or its representatives from or against any or all claims asserted by
any person or persons arising out of or in connection with the Mortgaged Property. The Authority may in its sole opinion require the owner to furnish
additional insurance at the owner's expense for any other hazards involved in work, which in the opinion of the Authority at any time during the
mortgage period appears to present a special hazard which requires special insurance. The Authority reserves the right to increase scope and coverage
limits of insurance if in the opinion of the Authority such coverage is necessary. All insurance policies or binders are required to be in effect prior to
any commencement of operations of the Mortgaged.
11) Any Property Management Firm must provide evidence of Comprehensive General Liability Insurance, Worker's Compensation Insurance,
Automobile Liability Insurance at limits equal to at least $1,000,000. It is recommended that Bonds for dishonest acts be obtained, as well as coverage
for burglary, robbery or theft of monies and securities. Automobile Liability coverage should be obtained with a single limit of at least $1,000,000 and
should apply with respect to all owned, non-owned or hire vehicles.
DISCLAIMER
Note: These insurance requirements are the minimum requirements set by the Authority to protect the Authority's interest in the property. The Authority
make no representation that the above insurance requirements will meet the requirements of the Mortgagor and the Mortgagor is urged to consult
with its own agent or insurance advisor with respect to what insurance coverage is needed to protect the owner's interest. The Authority assumes
no liability in any form for failure to have insurance in the amount or kind necessary to protect the Mortgagor.
