SugarMill Plantation Covenants

Article IX – Insurance and Reconstruction


Section 1 – Damage to Common Property. In the event that any portion of the Common Property Is damaged or destroyed by casualty, it shall be repaired or restored to substantially its condition prior to the damage or destruction by the Association.

Repair or reconstruction of the Common Property shall substantially in accordance with the plans and specifications pursuant to which the same was originally constructed. All insurance proceeds shall be applied to the restoration and repair. if the insurance proceeds are insufficient, the deficit shall be assessed against all Owners as a Special Assessment If there is a surplus of insurance proceeds, it shall become the property of the Association.

Section 2 – Damage to the Units. In the event of damage or destruction to any portion of the improvements constituting a Unit, the Unit shall be repaired or restored. In the event that the damage of destruction renders the Unit uninhabitable or the damage is so substantial that the Owner determines not to rebuild the Unit, the Owner shall clear the debris and have the Lot leveled, within 60 days from the date of destruction or damage.

Section 3 – Damage to Common Property Due to Owner Negligence. In the event that the Common Property is damaged as a result of the willful or negligent acts of the Owner, his family, tenants, guests or invitees, such damage shall be repaired by the Association and the cost thereof shall be a Special Assessment as described in Article IV Section 15.

Section 4  Insurance. The policy of property insurance maintained by the Association shall cover all of the Common property (except land, foundation, excavation items normally excluded from coverage) including fixtures and building service equipment to the extent that they are part of the common personal property and supplies.

The policy shall afford, as a minimum, protection against the following;

(a)    Loss or damage by fire and other perils normally covered by the standard extended coverage endorsement;

(b)    All other perils which are customarily covered with respect to projects similar in construction, location and use, including flood insurance, if applicable, and all perils normally covered by the standard “all risk” endorsement, where such is available. If flood insurance is required, it must be in an amount of 100% of current replacement cost of the improvement or the maximum coverage which may be obtained under the National Flood Insurance Program.

(c)    Losses covered by general liability insurance coverage covering all Common Property in the amount of at least $1,000,000.00 for bodily injury, including deaths of persons and property damage arising out of a single occurrence. Coverage under this policy shall include, without limitation Legal liability of the insureds for property damage, bodily injuries and deaths of persons in connection with the operation, maintenance or use of Common Property and any legal liability that results from lawsuits related to employment contracts in which the Association is a party.

The hazard policy shall be in an amount equal to 100% of the current replacement cost of the insured properties exclusive of land, foundation excavation and items normally excluded from coverage. The policy shall provide that it may not be canceled or substantially modified without at least 10 days prior written notice to the Association. The Board may obtain Such additional insurance as it in its sole discretion deems reasonable, convenient or necessary.

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