RESOLUTION NO. 03-2

RESOLUTION REQUIRING TENANTS TO MAINTAIN LIABILITY INSURANCE ON RENTAL UNITS

WHEREAS, the Board of Trustees of Society Hill at Piscataway Condominium Association, Inc. has been advised by its insurance agent as to significant difficulties in obtaining affordable blanket condominium insurance for the Society Hill premises; and

WHEREAS, the Board of Trustees has been advised that one of the reasons for the difficulty in obtaining such insurance arises as a result of the significant number of claims made for damage in the recent past; and

WHEREAS, one or more of the aforementioned claims may have arisen as a result of the negligent acts of tenants in those units which are rented by unit owners to such tenants; and

WHEREAS, the current policy of insurance for Society Hill at. Piscataway Condominium Association, Inc., as required by the Association's By-Laws, include a waiver of subrogation against individual unit owners at Society Hill; and

WHEREAS, the waiver of subrogation does not apply to any policies of insurance issued to tenants of the unit owners; and

WHEREAS, the Board of Trustees is of the opinion that it is in the best interest of the Association to require such tenants to obtain liability insurance in order to assist the Association in its efforts to maintain an Association Condominium insurance policy at a more affordable level;

NOW, THEREFORE, BE IT RESOLVED as follows:

1. Each unit owner of the Society Hill at Piscataway Condominium Association, Inc., shall require that any unit which is rented to tenants must provide that the lease between the unit owner and the tenant(s) contain a provision requiring the tenant(s) to obtain a policy of liability insurance in an amount of at least Three Hundred Thousand Dollars ($300,000.00) to indemnify the tenant(s) against any liability incurred by said tenant(s) as a result of the tenant(s)' actions in the use of the condominium unit.

2. A copy of the tenant's liability insurance policy shall be forwarded to the Association Office prior to the occupancy of the condominium unit by the tenant.

3. Lease Agreement between the parties shall further provide that in the event that any tenant(s) shall fail to obtain and maintain the aforementioned policy of insurance, same shall constitute an immediate grounds for eviction of the tenant(s).

ADOPTED: on a roll call vote as follows:

For Against Abstain

Joanne O’Beirne ___X___ _______ _______

Madan Shrma ___X___ _______ _______

Gerald Adelman ___X___ _______ _______

Fred Robinovitz ___X___ _______ _______

Debra Martowlis ___X___ _______ _______

Kapil Shah ___X___ _______ _______

Mahesh Patel _______ _______ _______

I certify that this is a true copy of the Resolution.

(signed by Fred Robinovitz)

_________________________________

Secretary

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