Email Mike Email
Residential Real Estate
Jun 29, 2016

Property Owner Association Strategies For Post-Hurricane And Disaster Events (Part 3)

Sponsored Content provided by Mike Stonestreet - Co-Owner/President, CAMS (Community Association Management Services)

In my previous two articles, I discussed preparation for catastrophic events and post-event site assessment. There are a few final steps to disaster recovery for associations, though, and those are settling the insurance claim and finalizing the cleanup and repair process.
 
Once it has been confirmed that the damages or repair costs will exceed any deductibles, you will need to file an insurance claim with the insurance carrier. If you own in a condominium or multi-unit association which has a master insurance policy, the board of directors or your professional management company will be filing the claim on the members’ behalf. 
 
Owners with individual HO6 policies will need to file a claim with their individual carriers for damages to personal property and possible loss of use, and for additional building coverage for portions of your unit which you are required to insure. 
 
The board will thoroughly review the insurance policy provisions and consult with its insurance agent to see what the association’s insurance will cover with respect to repairs, cleanup, and landscaping and tree removal to the common areas and amenity structures. It is recommended that each condominium or multi-unit association unit owner review the association’s governing documents to determine what the master insurance policy will cover versus the owner’s individual policy. 
 
Once a claim is filed, the insurance carrier will assign an insurance adjuster who will review the damages and prepare an estimate for the cost of cleanup and repair to bring the property back to like-kind condition. 
 
Your general contractor should work hand-in-hand with the insurance adjuster to prepare the estimate and agree on costs. Once the estimate has been finalized and agreed on, the general contractor and insurance adjuster should then send it to the board of directors for review. Bear in mind that neither the general contractor nor the adjuster can settle the claim. Finalizing and settling the claim is ultimately the responsibility of and can only be approved by the board of directors. Once approved by the board, the insurance company will provide a proof of loss statement, which must be signed by the board. 
 
I highly recommend that a segregated bank account and financial report be used to account for insurance proceeds, disaster-related special assessment income, and expenses related to the disaster and insurance claim. In the event that additional damages are found during the repair process, a supplemental claim can be filed. Often insurance companies require that any supplemental claims be filed within one year of the initial claim.
 
As noted in my earlier articles, it is extremely important to provide continuous communication on the cleanup and repair process. As the repairs to the common areas and units begin to wind down, final finish selections should be completed by the owners for their units, and by the board for the common areas. Once all repairs are completed, they should be reviewed by the board, or a representative of the board, to ensure that all work has been completed in accordance with the insurance scope and estimate. The board should require each unit owner to sign off on a “satisfaction of completion form” which reflects the owner’s satisfaction with the work completed in his or her unit and agreement with all finishes as selected.
 
A professional association management company that has experience in disasters and catastrophic events can be an excellent resource and help in guiding the association through the process.
 
Additionally, there are general contracting companies that specialize in insurance reconstruction and are very familiar with the insurance claim and repair process.
 
Mike Stonestreet is a 26-year veteran of the professional HOA management industry who has achieved one of the highest education-based designations in the field, that of Professional Community Association Manager (PCAM). Community Association Management Services (CAMS) has been a leading association management company since its inception in 1991. CAMS is a trusted provider of management services for more than 265 associations throughout North Carolina, South Carolina and Georgia. To find out how CAMS can benefit your community, call 910-256-2021, email [email protected], or visit www.CAMSmgt.com.

Other Posts from Mike Stonestreet

Cams 300x250 animated ad
Ico insights

INSIGHTS

SPONSORS' CONTENT
Chris coudriet headshot 300x300 10211545555

Advancing Our Success into 2018

Chris Coudriet - New Hanover County Government
Cityclub

City Club Membership: Good For Business (And Pleasure)

Jonathan Weiss - City Club of Wilmington, LLC
Denverhollingsworthheadshot

Debunking the Myths of Bulk WiFi

Denver Hollingsworth - Epproach Communications

Trending News

Business Community Remembers Beth Quinn, Co-founder Of She Rocks

Christina Haley O'Neal - Jan 17, 2018

Piano Bar And Lounge To Fill Aubriana's Downtown Spot

Cece Nunn - Jan 17, 2018

Made Mole Brewing Coming To Oleander Drive This Spring

Jessica Maurer - Jan 17, 2018

Six New Tenants Lease Space At Waterford Business Center

Cece Nunn - Jan 17, 2018

San Juan Cafe To Close

Jessica Maurer - Jan 17, 2018

In The Current Issue

Tourism Initiatives Continue Digital Trend

With the New Year here, many businesses are busy planning and forecasting via a fresh start. For those operating by fiscal year, however, st...


Local Army Corps Team Has Full Plate

When two Category 5 hurricanes decimated the Virgin Islands in late summer, the Wilmington Army Corps of Engineers was tapped to lead the re...


True Blue Owner To Blend New, Traditional

Bobby Zimmerman has been thinking about opening his own restaurant for years. When the former Pembroke’s space opened in The Forum, he had w...

Book On Business

The 2017 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

WilmingtonBiz Expo - Keynote Lunch with John Gizdic, CEO, New Hanover Regional Medical Center
Wilmington's Most Intriguing People of 2017
2017 Health Care Heroes