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($1,000,000) per occurrence, and shall furnish a Certificate of Insurance to the Agency before <br />the commencement of construction. All Additional Insureds shall not be responsible for any <br />claims in law or equity occasioned by the failure of the Developer to comply with this <br />Section 306.1. Every workers' compensation insurance policy shall bear an endorsement or shall <br />have attached a rider providing that, in the event of expiration or proposed cancellation of such <br />policy for any reason whatsoever, the Agency shall be notified, giving the Developer a sufficient <br />time to comply with applicable law, but in no event less than thirty (30) days before such <br />expiration, cancellation, or reduction in coverage is effective or ten (10) days in the event of <br />nonpayment of premium. <br />(g) Should any of the insurance coverage required here be written with <br />an annual aggregate such aggregate shall be disclosed in writing to the Agency. <br />(h) For all insurance required under this Section 306.1, the Agency <br />shall have the right, at every five (5) year period, to review the types and limits of insurance <br />coverage required herein and to make reasonable adjustments, provided that such types and <br />limits shall not exceed that typically carried by the owner and operator of a comparable <br />affordable housing apartment complex, of approximately the same size, in Orange County, <br />California, based on reasonable research and investigation by the Agency. <br />306.2 Property Insurance. Commencing upon the Closing for each Phase and <br />continuing for the duration of the Affordability Period with respect to such Phase, Developer <br />shall secure, maintain, and pay for the following all-risk Property Insurance; provided, however, <br />in the case of Builder's Risk insurance where Developer is not the general contractor, Developer <br />may cause the required builder's risk insurance to be secured, maintained, and paid for by the <br />general contractor: <br />(a) Prior to the start of construction and continuing until the <br />completion of construction (the latter of final acceptance of the Project or issuance of the final <br />certificate of occupancy for the Project): all-risk Builder's Risk (course of construction) <br />insurance coverage in an amount equal to the full cost of the hard construction costs of the <br />Project. Such insurance shall cover, at a minimum: all work, materials, and equipment to be <br />incorporated into the Project; the Project during construction; the completed Project until such <br />time as it is accepted by the Agency; and storage and transportation risks. Such insurance shall <br />protect/insure the interests of the Developer/owner and all contractor(s), and all subcontractors, <br />as each of their interests may appear. If such insurance includes an exclusion for "design error," <br />such exclusion shall only be for the object or portion which failed. Such insurance shall include <br />an insurer's waiver of subrogation in favor of each protected/insured party thereunder and the <br />Agency. The Agency shall be named as an additional loss payee, as its interests may appear, <br />with a loss payable endorsement, which shall be delivered to the Agency prior to the start of <br />construction. <br />(b) Commencing with the completion of construction and continuing <br />for the duration of the Affordability Period: (a) all-risk physical damage insurance coverage, on <br />an all-risk basis, covering all insurable structures and equipment, including coverage for building <br />code changes, in an amount not less than 100% of the replacement cost of the total values at risk, <br />which shall be adjusted for increased costs of construction and replacement on an annual basis, <br />DOCSOG140067304/200272-0401 <br />34