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Maintenance & Insurance Areas of Responsibility Policy |
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In every homeowner association, there should be a policy which defines which party, homeowner association or member, is responsible for insuring and performing maintenance building and grounds components.. Without it, the HOA could be subject to costs that rightly belong to members. Since HOA insurance is very broad in its coverage, it’s extremely important to limit the kind and frequency of claims to protect both the insurability of the HOA and the cost of insurance. Below is a sample policy designed for a typical condominium which defines both insurance and maintenance responsibilities. The same kind of policy can be adapted to non-condominium homeowner associations. The policy must be in compliance of maintenance and insurance responsibilities found in the governing documents. While the board can enact this policy without amending the governing documents, amending them puts all prospective purchasers, lenders and insurance carriers on notice. Nottacare Condominium WHEREAS, Section ___ of the Nottacare Condominium (homeowner association) Bylaws grant the general power to conduct the business and affairs to the Board of Directors, and WHEREAS, the homeowner association has the responsibility to insure and maintain the common elements; and WHEREAS, the homeowner association members have the responsibility to insure and maintain their units, NOW, THEREFORE, BE IT RESOLVED THAT in order to define the maintenance and insurance responsibilities of the homeowner association and the members for the purposes of protecting the availability and cost of insurance for the homeowner association, the Board of Directors establishes a policy as follows: Maintenance & Insurance Areas of Responsibility List. The Board adopts the Maintenance and Insurance Areas of Responsibility List (see Schedule A) to define by homeowner association or member which has responsibility for maintenance and insurance according to building or grounds components listed. This list may be amended from time to time as deemed appropriate by the Board. Member Responsibility for Damage to Common Elements. Cost for repair of damage to common elements resulting from fire, flood or other cause, whether by negligence or otherwise, that originates from a member’s unit is that member’s responsibility. Such costs shall be reimbursed to the homeowner association by the member within 30 days of billing. Unpaid balances will be subject to the homeowner association’s normal collection procedures. Member Responsibility for Damage to Another Member’s Property. Damage to a member’s unit due to fire, flood or other cause originating from another member’s home or unit will be paid for by the member affected or by the source member if negligence is involved. The members affected must resolve maintenance and insurance issues between them. The homeowner association has no mediation, insurance or repair responsibility for such events. Member Responsibility for Damage to Common Area. Cost for repair of damage to common elements due to fire, flood or other cause originating from the member’s unit will be paid for by the member. Damage will be repaired by the homeowner association and costs shall be reimbursed to the homeowner association by the member within 30 days of billing. Unpaid balances will be subject to the homeowner association’s normal collection procedures. Insurance Claims Submitted to Homeowner Association Insurance. Insurance claims submitted to the homeowner association insurance must conform to this Maintenance & Insurance Areas of Responsibility Policy and by pre-approved for submission by the Board President or the Property Manager. Board Discretion for Accepting Certain Insurance Claims. The Board may authorize submission of insurance claims to the homeowner association insurance which otherwise would be the responsibility of individual members under this policy if, in the Board’s discretion, the scope of the claim and number of units affected warrants such action. This decision requires a majority vote of the Board at a meeting duly called for this purpose. Members Required to Notify Insurance Carriers. Each member is required to provide a copy of this Maintenance & Insurance Areas of Responsibility Policy to their insurance carrier so that the carrier is put on notice of the policy and to assist the member in obtaining proper and adequate insurance. Recorded in the Book of Minutes on __________________, 201___ Signed: ____________, 201__ ______________________________________________ Attested to by: ______________________________________________
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Schedule A |
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1. Exterior
Siding & Trim A Repair, replace, paint, caulk 2. Gutters & Downspouts A Repair, replace, paint, caulk, clean
3. Roofs, Roof Flashing & Decking 4. Perimeter Wall Studs & Insulation 5. Perimeter Wall Interior Sheet Rock 6. Party Wall Studs 7. Party Wall Sheet Rock & Insulation 8. Building Ceiling & Floor Rafters 9. Unit Interior Wall Sheetrock & Finish 10. Unit Interior Ceilings & Floors 11. Unit Fixtures & Finishes 12. Unit Doors & Locks - Exterior 13. Windows & Screens 14. Electrical |
15. Plumbing A Common supply and drain lines O Supply/drain lines from connection with common O Unit water shut-off valves, interior fixtures A Central hot water heater O Unit hot water heater
16.
Decks & Patios 17. Hallways & Stairs - Common Area 18. Sidewalks & Steps - Common Area 19. Insect & Pest Control 20. Water & Smoke Damage 21. Fireplace & Chimney 22. Common Area Trees, Flowers, Plants & Shrubs 23. Parking Garage & Lot 24. Elevator 25. Pool, Pool Deck, Furniture & Equipment 26. Fences 27. Signage-Entry, Address, Street
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