Does your condominium association have numerous part-time residents or vacant units? Are the owners within your community aware of preventative measures to take before they leave their unit for a vacation or extended period of time? Does your association have the documentation in place to address responsibility for payment of the association’s insurance deductible in the event of damage?
Many condominium associations have experienced substantial damage (typically caused by water leaks) that could have been prevented if the owners were aware of measures to take to prepare their unit for a short-term or long-term vacancy. To help prevent and mitigate future damage, condominium associations should adopt a board resolution outlining a series of rules and maintenance standards that owners are required to follow to help prevent water leaks.
This board resolution should also include rules governing responsibility for payment of the association’s insurance deductible, as this requirement is often dependent on the type, extent, location and nature of the damage, as well as provisions in the association’s governing documents. Our attorneys can assist the association in drafting a resolution that addresses the specific issues in the condominium.
It is important for the association to have rules in place regarding payment of its insurance deductible so that the association is not scrambling after a loss occurs trying to figure out who is responsible for payment. The issue of whether the association can assess the insurance deductible against an owner or owners should be reviewed by our attorneys before a loss occurs.