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Premier Property Management Receives 2015 Best of Enfield Award

We are pleased to announce that Premier Property Management has been selected for the 2015 Best of Enfield Award in the Real Estate Management category by the Enfield Award Program.

Each year, the Enfield Award Program identifies companies that we believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and our community. These exceptional companies help make the Enfield area a great place to live, work and play.

Various sources of information were gathered and analyzed to choose the winners in each category. The 2015 Enfield Award Program focuses on quality, not quantity. Winners are determined based on the information gathered both internally by the Enfield Award Program and data provided by third parties.

About Enfield Award Program

The Enfield Award Program is an annual awards program honoring the achievements and accomplishments of local businesses throughout the Enfield area. Recognition is given to those companies that have shown the ability to use their best practices and implemented programs to generate competitive advantages and long-term value.

The Enfield Award Program was established to recognize the best of local businesses in our community. Our organization works exclusively with local business owners, trade groups, professional associations and other business advertising and marketing groups. Our mission is to recognize the small business community's contributions to the U.S. economy.

ICE DAMS, INSURANCE DEDUCTIBLES, AND THE ALLOCATION OF REPAIR COSTS

By Scott J. Sandler, Esq.

On September 15, 2015, the Connecticut Condominium Owners Coalition (“CCOC”) posted an article by Patricia Ayars, Esq. titled Ask Attorney Pat: How to Get the Association to Pay and Repair Ice Damming.  This article depicts board members as stubborn jackasses in need of a good clubbing with a two-by-four, who are wrongly refusing to pay to repair units damaged by ice dams.  A more appropriate title for the article would have been How to Get Your Neighbors to Pay to Repair Damage to Your Unit that Should Be Covered by Your Insurance Policy.

Per-Unit Deductibles

The insurance industry is employing more and more creative methods to avoid having to pay claims.  The imposition of per-unit deductibles is one of these methods.

Insurance companies that sell master insurance policies to associations are now more commonly requiring that the policy contain a per-unit deductible for damage caused by ice dams.  The policy then treats each damaged unit as a separate occurrence. 

On a per-unit scale, damage from ice dams often costs less than the amount of the deductible.  However, because a large number of units may be damaged, the total repair cost that is not covered by the master policy can be substantial. 

Master Policies and Homeowner Policies: Primary and Secondary Coverage

Section 47-255 of the Common Interest Ownership Act (“CIOA”) requires the association of most communities to purchase a master insurance policy that covers both the units and the common elements against claims for property damage.  CIOA does not require the association to insure the units in communities where the units are completely detached, or where the units are constructed as duplexes.

Section 47-255 also requires that, in the event of a loss, the master policy provide “primary” coverage.  CIOA does not state that the master policy will provide “exclusive” coverage.  The distinction between primary and exclusive is one of major significance, and it is one that is often overlooked.

Most individual unit owners have purchased their own insurance policies.  These policies provide for coverage for damage to the unit, as well as coverage for the owner’s personal property.

When there is damage to the property, the master policy provides primary coverage.  This means that the association must first look to the master policy for coverage. 

However, nothing in CIOA prohibits the association and the owners from seeking secondary coverage from another source of insurance, such as the insurance purchased by the unit owner.  And doing so makes perfect sense, since the coverage is already in place and is designed to protect the owners from bearing the cost of repair.  The very reason unit owners pay insurance premiums is to protect them from this cost.

Repair Costs as Common Expenses

Section 47-255 of CIOA states that the cost of repair that exceeds available insurance proceeds is a common expense.

First, CIOA refers to “available” insurance proceeds.  The provision is not limited to just the proceeds available under the master insurance policy.  Proceeds may also be available under the owner’s policy.

Second, while common expenses are generally shared by all owners, there are a number of situations  where CIOA permits the association to assess an expense against just a few or even only one owner.  Subsection 47-257(c) states that the declaration of the community may require the following:

1. That the association assess the cost of maintaining, repairing, or replacing a limited common element solely against the unit that it serves;

2. That the association assess the cost of insurance against units in proportion to risk;

 3. That the association assess the cost of utilities in proportion to usage; and

4. That the association assess a common expense, or any potion thereof, that benefits less than all units, solely against the units that receive the benefit.

The cost of repairing a unit damaged by an ice dam is an expense that benefits that unit.  While that cost is a common expense, the declaration may require the association to assess that expense solely against the damaged unit pursuant to Subsection 47-257(c) of CIOA.

We Have Met the Enemy and They Are Us

Unit owners, including board members, are all too often subject to the “We vs. Them” mentality.  They forget the most important part of living in a common interest community, the part about it being a “community.” 

To save money, board members will identify expenses to push back onto individual owners.  Likewise, the individual owners will expect the association pay for anything and everything that is related to the good and welfare of the community.

The fact that gets lost in these competing views is that, in the end, there is only one source of income for the community: the individual owners.  Either the owners pay for expenses directly, or they pay common charges which the association uses to pay the expenses.  But no matter what, the owners pay.

Protecting the Community

If the association really wants to save the community money, and to insulate owners from the burden of uncovered repair costs, it must look for resources outside of the community.  That is why it is so important to tap into the insurance purchased by individual owners as secondary coverage.

Attorney Ayars focuses her article on forcing the association to pay for the cost of repairing damaged units.  That only results in costing all owners more money. 

The real focus should be on how to tap into sources of insurance other than just the master policy, so that more of the expenses are paid from sources outside of the community.

Many insurance companies that sell policies to individual owners will cover these costs without question. 

However, some companies have engaged in the same flawed interpretation of CIOA as Attorney Ayars has.  They see “primary” and think “exclusive.”  They see “common expense” and think of the general rule of assessing all owners, not just those that benefit from the expense.  However, if the declaration specifically requires the association to assess these repair costs solely against the damaged units, then even these companies will cover these costs.

It is for this reason that the second edition of the Common Interest Ownership Manual, published by the Connecticut Bar Association, includes a model declaration that provides for assessing these costs against the damaged units.  The authors of the manual, having consulted with other attorneys, insurance professionals, and the Connecticut Insurance Department, concluded that the best way of protecting the community from the burden of these costs was to require the association to assess these costs against the damaged units, thus triggering coverage under the polices purchased by individual owners.

Responsibility to Repair

Attorney Ayars is correct when she states that the association cannot refuse to make repairs when units are damaged by events covered by property insurance.  Section 47-255 of CIOA requires the association to make these repairs.  Once the adjusters hired by the association and homeowner’s insurance companies have fully inspected and documented the damage, the association must proceed with the repairs as promptly as possible.

It is understandable that angry and frustrated owners and board members will point fingers and attempt to avoid incurring additional expenses.  However, suggesting that the board members should be clubbed with a piece of lumber is not the answer.  The real answer is to structure the responsibility for the loss in a way that protects the entire community against the expense.

Attorney Sandler is a partner in the law firm of Perlstein, Sandler & McCracken, LLC, located in Farmington, Connecticut.  His firm represents over 400 condominium and homeowner associations throughout the state.  Mr. Sandler is a fellow of the Community Associations Institute’s College of Community Association Lawyers.  Since 2010, he has served as the chairman of the Legislative Action Committee of the Connecticut Chapter of the Community Associations Institute.  He is also a member of the Institute’s Government & Public Affairs Committee.  Mr. Sandler served the Institute as president of its Connecticut Chapter from 2008 through 2009.

Fall Property Maintenance Checklist for Condominiums

Sadly, summer is coming to a close and winter is right around the corner. At this time of year, it’s especially important to keep up with seasonal maintenance on your property. Here are some items to consider before the weather starts getting too cold:

Clear gutters and downspouts. Before autumn dumps some more leaves into your gutters, they should be inspected for dirt, leaves and other debris. Downspouts should be cleared of clutter and all the fittings should be examined.

Clean the chimney. If your property has a chimney, hire a professional chimney sweep to make sure the damper and flue are working properly, the flashing is protected against water leakage, and no animals have made their nest inside.

Repair the walkways. Before the ground becomes slippery with rain or covered in snow, your building’s walkways should be inspected for cracks, uneven pavement, or any opportunities for residents to trip and get hurt.

Remind residents to change the air filters. After a summer of using the central air system, filters can get dirty. Also remind them to waterproof or remove window air conditioning units before fall sets in.

Check for leaks. Prevent broken and burst pipes in the winter by having the plumbing in each unit inspected for leaks. Get up into the attic space after a rainstorm and make sure there are no leaks in the roof, chimney, or skylights. Remind residents to keep their indoor temperature set high enough setting to prevent frozen pipes.

Our clients can schedule a fall inspection with us by giving us a call at 877-208-4570. You can also visit us online.

Question of the Day

We received a photo and question from one of our clients today. She wondered whether the ivy climbing up the sides of their old, brick-faced building should be removed. For several reasons, we said, "Yes!"

Here's why:


Crumbling mortar, cracks, and loose bricks can be invaded by ivy roots, which can widen existing cracks and allow moisture to penetrate. 

The quality of mortar has improved over the years, so the older the building, the greater the risk of weakened mortar. Structures built before 1930 need particular caution, as older, lime-based mortar is softer than modern, cement-based mortar.

In addition to the problems ivy can create on a brick building, there are several other types of finishes that should be kept ivy-free:

Wooden surfaces: Ivy can easily work its way between boards, opening the joints and damaging the structure. The roots can also penetrate small weaknesses and cracks in the wood grain, increasing the risk of rot. And, if that’s not enough, ivy can harbor wood destroying insects and other pests.

Siding: Any siding or shakes with seams are vulnerable to penetration by ivy roots, which can cause damage both as the ivy’s growing and when it’s pulled off.

Stucco: The main problem with stucco comes when the ivy is pulled off, because it can pull off paint or even chunks of stucco, and the tiny roots can permanently discolor the surface.

Painted Surfaces: As with stucco, the ivy roots may damage the paint when pulled off.

Unsound Structures: Ivy is very heavy, and it can pull down weakened or improperly-built structures.

For these reasons, we suggest that all ivy and climbing plants remain trimmed back, away from exterior walls. Premier clients, ff your building has any plantings climbing up the walls of your buildings, please contact us right away.



Source: TodaysHomeowner.com

Post-fire Rebuild in Progress in Meriden

On May 9, 2015, a 4-alarm fire destroyed 22 units at one of our properties in Meriden. Reconstruction is in full swing, and we hope to have everyone back home very soon!

The NEW American Dream

It used to be that everyone young person's dream was to get married and buy a "starter" home. They hoped to build equity in the home then, years later, sell if for a large profit. Then our country experienced the financial crisis of 2008, when the U.S. housing market suffered widespread losses. While we still have a desire to have our own space with the freedom to remodel it as we wish, the effects of the housing crisis may have prompted a more cautious approach by buyers who are more realistic about the level of equity they can build in their homes. Homeowners and prospective homeowners are now looking more closely at the costs and benefits of such a large transaction. While a home is still a good investment, many financial experts still caution against purchasing a home for the sole purpose of making lots of money.


 
For many Americans with active lifestyles, renting is a great way to free up time that would normally be spent maintaining a house and yard. Renting also provides the freedom of being able to pick up and move without the burden of having to sell a house.

Here are a few more benefits of renting:

• Flexibility. Renting allows you to explore an area before making the longer-term commitment to homeownership. From schools to shopping to neighbors, each neighborhood had benefits and drawbacks that may not be obvious during the relatively quick home buying process.
• Career uncertainty. If you think you might need to move in the near future, or are considering job changes that may require relocation, you might want to rent.
  
• Income uncertainty. If you expect a pay increase or decrease in the near future, that can change your borrowing ability as well as impact your ability to make mortgage payments.
  
• Poor credit. Creating a history of on-time rental payments can help you build the type of credit you'll need to qualify for a home loan.
  
• No maintenance expenses. When problems arise, you simple call the landlord.
  
• Utilities. In some instances, the landlord may pay for many utilities such as water, sewer, trash removal, maybe even heat and hot water.

Whether renting or buying is more cost effective depends on your market, where you choose to live and whether you like to do home improvement and maintenance projects yourself. Should you decide that renting is for you, give Premier Property Management Services a call at (877) 208-4570 and let us help you find the perfect apartment!