What would happen if there were a major fire in our building? A flood? A hurricane? An earthquake that causes major damage? Or any other type of potential disaster? Who would pay for it?
What insurance does FSH have? The Board purchases property and liability insurance. This insures from your unit’s bare interior perimeter walls-out and also covers all common elements including support beams and columns contained in your unit. Aside from these exceptions, this means the interior of your unit is NOT insured by the Association’s policy. Insurance is a complicated topic. If you want to learn more specifically about FSH coverage, call the FSH insurance agent, Guy Riska at 843-416-1111.
What insurance does the owner need to purchase? In compliance with the FSH Master Deed, the owner is responsible for walls-in coverage and is required to purchase an insurance policy covering the interior of the unit. This policy is commonly called an HO6 policy. These policies typically cover personal property (contents), liability, and the property. We are in an earthquake zone, so it would be prudent to also purchase earthquake coverage, since this is not normally included coverage in an HO6 policy. This is not specifically required by the Master Deed, but it may be in your best interests.
What if you rent your apartment to tenants? If you rent out your apartment, you (the owner) will still need to have an HO6 policy covering all your permanently attached property and whatever contents of yours the tenant may be using, but your insurance will not be responsible for covering your tenant’s personal contents. Renter’s Insurance policies are available to cover their belongings.
Additional Information Provided by FSHA Insurance Agent
As you should know, the Board is responsible for purchasing Master Property and General liability Insurance coverage in accordance with the Master Deed for all Buildings and Common Elements. We have secured the broadest policy coverage possible called “Special Form” coverage which covers most perils including Earthquake. This policy, previously known as All-Risks Coverage, insures from your unit’s bare interior perimeter walls>out and also covers all common elements including support beams and columns contained in your unit. While the Master Policy covers all common elements, our recent Amendment 13 requires your HO6 policy to now insure the interior finished walls, floors and ceilings along with all improvements made to your unit and your personal contents. The peril of Earthquake should now also be covered on your unit since the upfit is now your responsibility. In addition to property coverage, the HO6 policy provides much needed General Liability protection for you if someone gets hurt in your premises or if their property/body is somehow damaged/injured by you. It’s important to note that you need a full blown General Liability policy providing you world-wide protection, if this is your primary residence insurance policy. If this is a second home, then your primary Homeowner’s Policy provides this worldwide coverage and you can purchase a less expensive, more limited policy called a Premises Liability policy which affords liability protection specifically within your unit should someone get injured and sue you.
In addition to the Special Perils Master Policy, the Board purchases Master Flood Insurance through the NFIP (National Flood) Program in an amount equal to $250,000 per unit which is the maximum allowed under that program. Unlike the Association Property Policy, the Flood policy pays for all building improvements in both the common areas and in units above the base flood elevation. It also covers building service equipment at or below the Base Flood elevation. Anything not attached to the building or the unit and considered personal contents coverage can also be purchased on your own.
All unit owners are required to purchase an HO6 policy to insure the interior upfit of their entire unit and personal contents from all perils (Special Form Coverage).
_____________________________________
Please complete the attached form and return to Joe Yetsko, Building Manager at
[email protected] or mail it to Fort Sumter House, 1 King Street, Charleston SC 29401.”
HO6 Policy
I certify that I have an active HO6 insurance policy covering my unit.
_______________________________________ ________________
Name Unit #
_______________________________________ ________________
Signature Date