Protect Your Community from Natural Disasters

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1 Protect Your Community from Natural Disasters by Dan Odess Whenever a hurricane threatens Florida, the pace of life shifts into a different gear. Homeowners rush to pick up bottled water, canned goods, and batteries, put up their storm shutters, and follow every step of the storm s projected path. Condominium and homeowner associations (HOAs) also rush into action, working with property managers to trim trees and shrubs, pick up outdoor debris, fire up emergency generators, and minimize the potential damage. While it s vital for community associations to have hurricane preparation plans in place, it s important to remember that natural (or man-made) 68 Oct 2011 FLCAJ

2 disasters can occur at any time. There s always a risk of a severe flood, fire, tornado, or hailstorm and the BP oil spill of 2010 indicates the environmental dangers that lurk on and offshore in Florida. That s why associations need to update their disaster plans on a regular basis and consider the best way to respond to a multitude of different potential threats. A community located near a gas pipeline or a utility power plant, for instance, should include those risk factors in its disaster plan. A public adjuster, who is a licensed professional familiar with insurance coverage, claims, and construction issues, can provide helpful input during the planning process. Here are 15 recommendations for protecting your community from natural disasters that are based on more than two decades of experience helping clients resolve their insurance claims. 1. Put it in writing. It s not enough to keep your disaster plans on your computer. Print everything out, including at least one spare copy, so you ll know what to do if the power goes out. In a large-scale disaster, it may be several days before you can access all those files on your desktop or server. 2. Know your role. A good disaster plan covers the roles and responsibilities of board members, property managers, and service providers. Make sure everyone has a written copy of those roles so that nothing falls through the cracks (literally!). Remember that landscaping companies, handymen, Be prepared to go ahead and other service providers may be and file a claim if the community suffers a serious hard to reach in an emergency, so have several names and contact loss. After all, that s why numbers on that list. you purchased insurance in 3. Keep contact numbers current. the first place. It s a good Condominium and HOA board members should have up-to-date idea for the association contact information for each other board to talk through this and for key property management issue in advance rather staffers. Be sure that includes mobile than waiting for a disaster. phone numbers and addresses since everyone will be out in the field. Update that contact list at least quarterly. You d be surprised by how many of those names and numbers change during the year. 4. Know your owners. Regardless of the size of the community, be sure that someone maintains an up-to-date list of owners (and any tenants) with all contact information. Again, this list needs to be updated regularly and printed out not just stored on the server. 5. Follow your bylaws. Community associations usually include provisions outlining owners responsibilities before, during, and after a natural disaster. Check your bylaws and be sure you re following those procedures. In any case it s important to remind owners regularly of their responsibilities and the role they play in protecting their building and community. FLCAJ Oct

3 6. Get keys for each unit. A set of unit keys should be kept at the association office for emergency use. If there is a fire in the building, for instance, having those keys on hand may save a few precious moments in rescuing occupants. If hailstones have damaged the roof or flooding has affected the floor, you will need those keys to inspect the units for damage. Otherwise, your insurance claim may not reflect the hidden damage. 7. Inventory your assets. Every association has certain assets, such as the computer network, office furnishings, pool supplies, and landscaping equipment. Update that inventory list and take photos of your assets. These will be important documents if you need to file an insurance claim. 8. Substantiate any prior repairs. Many Florida communities include properties that suffered hurricane damage in 2004 and 2005 and have since been repaired. In those cases, it is particularly important to document the current condition of the property, including building permits, construction receipts, and multiple photos. Otherwise, the insurance company may contest a claim filed for windstorm damage in 2011 on the grounds of pre-existing conditions. 9. Know your contractors. If a tornado, hurricane, or hailstorm strikes your community, you ll need a few good contractors. Get those names and numbers in advance and check their references and credentials. Not everyone with a contractor s license is skilled in all types of repairs. Doing your homework in advance can accelerate the recovery process for the association and for individual owners. 10. Untangle your insurance policy. Be sure to request a certified copy of the policy from your insurance broker. It will contain the fine print that may not appear on other documents. However, be aware of the fact that a typical insurance policy is hard to understand to put it mildly. A carrier s explanation of covered claims, damage limits, and other clauses often sounds like a foreign language. 70 Oct 2011 FLCAJ

4 If possible allow one of the board members or the management firm who has the specialized knowledge needed explain your policy. If there is no such person available, a public adjuster can untangle the terminology for you. 11. Know how to report a claim. While reviewing your policy, be sure you understand the steps involved in reporting a claim. Do you contact your agent, broker, or a thirdparty service? Should you call them or have them come to your office? What type of documentation will you need? It s much better to understand the process in advance than to rush through after a disaster when mistakes are likely to occur. Contacting a public adjuster before calling in your claim can prove to be invaluable as your PA can make sure that the claim is reported in an accurate, timely, and complete manner. 12. Document your riskmitigation actions. Throughout Florida, insurers are taking a closer look at how owners and associations are mitigating their risks. Therefore, be sure you can document any positive actions like installing impact-resistant windows and doors or an advanced fire-safety system. 13. Make print copies of your policies. Along with the bylaws, owner information, and inventory FLCAJ Oct

5 72 Oct 2011 FLCAJ list, print out copies of your windstorm, flood, and property and casualty (P&C) policies. A board member or manager should keep one copy of these documents in a secure location, while another copy should be housed off-site as a backup. You can also scan these documents and upload them to online sites like Google Docs or Microsoft s Skydrive. 14. Insist on a full recovery. If an insurance company tries to minimize your claim, insist on a full recovery and use your bylaws to help. For example, an association s rules might require a full roof replacement after a certain amount of damage. The insurer should cover that replacement cost, rather than just a small repair. 15. Don t be afraid to file a claim. Finally, be prepared to go ahead and file a claim if the community suffers a serious loss. After all, that s why you purchased insurance in the first place. It s a good idea for the association board to talk through this issue in advance rather than waiting for a disaster. A long debate about whether or not to file a claim can jeopardize your ability to obtain a fair and equitable financial settlement on behalf of the entire community. Daniel Odess, GC, PA, is President of East Coast Public Adjusters, Inc. in Miami. For more information, visit ecpaclaims.com.