Perry Rhodes, Agency Owner

1470 NE 1st St. #100

Bend OR 97701
Phone: 541-389-3715 Cell: 541-420-6433
Fax: 541-388-3040
October 19, 2011
08/15/2022
Butternut Creek Owners Association
Townhome Owners
c/o Crystal Lake Community Management
PO Box 8550
Bend, OR 97708

Dear Butternut Creek Townhome Owners:

The purpose of this letter is to briefly review the insurance coverage that has been purchased by the Board of
Directors and to clearly identify what the Association covers and what remains the responsibility of Unit Owners.

Blanket Building Coverage is provided for all of each building, interior and exterior, with a deductible of $5,000
per occurrence. Each claim enjoys the benefit of the whole policy’s coverage limit. Because building interiors
are fully covered, you do not need to carry personal Building Coverage on your individual policy.

Damage from any cause is covered unless it’s excluded. The most common claims we see are fire, hail, burst
plumbing, roof ice dams, vandalism, and damage caused by vehicles. The most common exclusions we see are
earthquake, flood, damage caused by wear and tear, and insect damage such as from termites.

General Liability coverage up to $3,000,000 protects the Association for incidents related to the Townhomes.
Unit owners are also personally covered for claims from incidents occurring in the Association common areas.

Unit Owners should still carry the following coverages personally:

1) Personal Contents coverage, with Replacement Cost settlement terms
2) Personal Liability coverage, for incidents occurring solely inside a unit
3) Association Loss Assessment Coverage: This protects a Unit Owner against having to pay the Association
deductible of $5,000, particularly in the event that the Board raises this in the future.

Additionally, the following coverages may be a good idea to consider:

1) Earthquake Coverage: The Association will not carry Earthquake insurance for Townhomes until the
volume of units can reasonably support the cost on a per-unit basis. Our Agency offers individual unit
policies through GeoVera Insurance (rated A by AM Best) that cost about $200 per year.
2) Flood Coverage: A basic FEMA-backed Flood policy cost about $500 per year when we quoted one unit as
an example.

If you have a claim, the best point of contact is Crystal Lake Community Management, 541-617-7006, extension
0, or Community@CrystalLakeCM.com. You are welcome to contact my office as well with claims or coverage
questions or to review the full contract.

Sincerely,

Perry Rhodes, Agent, Farmers Insurance Group