Covenants, Article V: Insurance by Owners

1. Owners shall purchase and maintain current a Homeowner (not Condominium or Condo) insurance policy for his/her/their Unit that provides at a minimum the following:

a.  Hazard coverage of a sufficient amount to rebuild, replace or restore his/her/their Unit to its original condition in the event of a fire or other perils, as determined by the Board.

b.  Personal liability coverage of no less than $500,000.00

2. Such insurance shall be secured from an insurance company holding an “A” rating or better and licensed to do business in the Commonwealth of Pennsylvania.

3. The South Abington Woods, Phase II Property Owners Association shall be named on such policy as Additional Insured, Additional Interest, or similar designation by the insurance carrier as necessary for reporting to the Association of any policy renewal, cancellation or change in coverage.

4. Proof of required coverage shall be provided to the Association within 30 days of the policy effective date and each renewal date thereafter, and the Board shall maintain the file thereof.

5. The Owner shall immediately notify the Association in writing, by mail or email, if his/her/their insurance policy is cancelled. The notification shall include proof that a new policy has been secured and proof of the replacement policy shall be submitted to the Association within 30 days of the policy effective date.

6. In the event an Owner fails to maintain proper insurance coverage, the Association may secure a Forced Placed Insurance Policy, and the cost of said policy shall be assigned to the Owner and a lien placed upon the Unit in the amount of the cost thereof.

7. Owners shall use the proceeds arising from any insured loss to repair and restore the Unit to its original condition, commencing such repair and restoration within thirty (30) calendar days after such loss, if reasonably feasible, and diligently prosecute same to completion.