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If you think hurricanes, wildfires, tornadoes and floods won't happen to you or that you don't need to insure against these disasters, you're among the nearly half of U.S. homeowners and renters who lack the insurance coverage to deal with potential losses, according to the National Association of Insurance Commissioners (NAIC).
In a recent NAIC national survey, about 48 percent of homeowners and renters said they did not have an inventory of their possessions. Of those who reported having a checklist, 32 percent had not taken any pictures and 58 percent had no receipts validating the cost of their possessions. In addition, 44 percent of respondents acknowledged that they had not stored their inventory in a separate location.
Here are some tips from the NAIC to help you prepare for disasters:
¯ Take an inventory of your valuables and belongings. This should include taking photographs or a video of each room. This documentation will provide your insurance company with proof of your belongings and help to process claims more quickly in the event of disaster.
¯ To enable filing claims more quickly, keep sales receipts and canceled checks. Also note the model and serial numbers of the items in your home inventory.
¯ As you acquire more valuables such as jewelry or antiques, consider purchasing an additional floater or rider to your policy to cover these special items. These types of items typically are not covered by a basic homeowner's or renter's insurance policy.
¯ Remember to include in your home inventory those items you rarely use such as holiday decorations, sports equipment and tools.
¯ Store copies of all your insurance policies in a safe location away from your home that is easily accessible in case of disaster. You may want to store your policies and inventory in a waterproof, fireproof box or in a safe location such as a bank safe deposit box.
¯ Consider leaving a copy of your inventory with relatives, friends or your insurance provider and store digital pictures in your e-mail or on a website for easy retrieval.
¯ Know what is and is not covered by your insurance policy. You might need additional protection depending on where you live. Make sure your policies are up to date. Contact your insurance provider annually to review and update your insurance policy.
¯ Keep a readily available list of 24-hour contact information for each of your insurance providers.
¯ Find out if your possessions are insured for the actual cash value or the replacement cost. Actual cash value is the amount it would take to repair or replace your home and possessions after depreciation, while replacement cost is the amount it would take to repair or replace your home or possessions without deducting for depreciation. Speak with your insurance provider to determine whether purchasing replacement coverage is worth the cost.
¯ Speak with your insurance provider to find out if your policy covers additional living expenses for a temporary residence if you are unable to live in your home due to damage from a disaster.
¯ Appraise your home periodically to make sure your insurance policy reflects home improvements or renovations. Contact your insurance provider to update your policy.
For more information, visit www.InsureUonline.org
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Your Association employs a highly-qualified professional Community Manager, and we think residents should know what the manager has-and has not-been hired to do. The manager has two primary responsibilities: to carry out policies set by the Board and to manage the Association's daily operations.
Some residents expect the manager to perform certain tasks that just aren't part of the job. When the manager doesn't meet those expectations, residents naturally are unhappy. Since we want you to be happy, we're offering a few clarifications to help you understand what the manager does.
The manager is trained to deal with conflict, but he or she will not get involved in quarrels you might be having with your neighbor. However, if Association rules are being violated, the manager is the right person to call.
While the manager works closely with the Board, he or she is an advisor-not a member of the Board. The manager can communicate your issues to the Board. If you have a concern, send a letter or e-mail directly to your Community Manager. If you need to see the manager, call and arrange a meeting. If a matter is so urgent that you need an immediate response, call MSI's main phone number at (303) 420-4433 during normal business hours, or if you have an Association related emergency after hours, call the same number and follow the prompts to leave a message for the On Call Manager. They will be paged and will return your call and handle your emergency. If it is a police, fire or health emergency, call 911.
The manager is always happy to answer questions, but he or she is not the information officer. For routine inquiries, like the date of the next meeting, please read the newsletter or check the Association website.
The manager is responsible for monitoring contractors' performance, but not supervising them. Contractors are responsible for supervising their own personnel. If you have a problem with a contractor, notify the manager, who will either handle the problem or forward your concerns to the Board. The Board will decide how to proceed under the terms of the contract.
The manager inspects the community regularly, but even an experienced manager won't catch everything. Your help is essential. If you know about a potential maintenance issue, report it to the manager.
The manager does not set policy. If you disagree with a policy or rule, you'll get better results attending a Board Meeting or sending a letter or e-mail to the Board than arguing with the manager.
The manager has a broad range of expertise, but he or she is not a consultant to the residents. Neither is he or she an engineer, architect, attorney or accountant. The manager may offer opinions, but don't expect technical advice in areas where he or she is not qualified.
Although the manager is a great resource to the association, he or she is not available 24 hours a day-except for emergencies. Getting locked out of your home may be an emergency to you, but it isn't an Association emergency. An Association emergency is defined as a threat to life or property.
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Community Association Fundamentals
Even though you live in an Association, you might be surprised how many of your neighbors-owners and renters alike-don't really understand the fundamental nature of common-interest communities. And we know that many others, including the media and government officials, lack a true understanding of the community association (or condominium) concept.
Community Associations Institute (CAI), a national membership organization that represents the best interests of common-interest communities like ours, developed 10 basic principles that answer three essential questions: What is the basic function of a community association? What are the essential obligations and expectations of homeowners? What are the core principles that should guide association leaders?
We're confident you will recognize your community while reading these principles.
1. Associations ensure that the collective rights and interests of homeowners are respected and preserved.
2. Associations are the most local form of representative democracy, with leaders elected by their neighbors to govern in the best interest of all residents.
3. Associations provide services and amenities to residents, protect property values and meet the established expectations of homeowners.
4. Associations succeed when they cultivate a true sense of community, active homeowner involvement and a culture of building consensus.
5. Association homeowners have the right to elect their community leaders and to use the democratic process to determine the policies that will protect their investments.
6. Association homeowners choose where to live and accept a contractual responsibility to abide by established policies and meet their financial obligations to the Association.
7. Association leaders protect the community's financial health by using established management practices and sound business principles.
8. Association leaders have a legal and ethical obligation to adhere to the Association's governing documents and abide by all applicable laws.
9. Association leaders seek an effective balance between the preferences of individual residents and the collective rights of homeowners.
10. Association leaders and residents should be reasonable, flexible and open to the possibility-and benefits-of compromise.
Fundamentals can be downloaded at www.caionline.org/governance/fundamentals.pdf . For more information about Community Associations Institute, go to www.caionline.org.
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If you are an owner who leases your unit, we'd like to make the leasing experience successful and positive for everyone by informing you of your responsibilities. This will help preserve your property value specifically and maintain the association's property value in general.
Your tenants may not be familiar with common-interest community living. Please take a few minutes to explain to them that living in a community association is very different from living in a rental apartment community. Specifically, your tenants, like all residents, are subject to the rules and regulations of the association, and it's up to you to educate them and see that they comply. The association will assist you in this area, but the responsibility lies with you. We recommend you provide your tenants with written copies of all policies and rules and advise them on the proper use of the association's facilities. You can obtain copies of these and other useful documents from your Association's website.
We strongly recommend that you have a written lease agreement with your tenant. As a lessor (landlord) of a home in a community association, the lease you use must require tenants to comply with the Association's governing documents. In the event your tenant fails to comply with these documents, including the bylaws, or its rules and regulations, a representative of the association will first contact your tenants in an attempt to remedy the problem. The association will send you a copy of any notice sent to your tenant.
If the tenant does not correct the violation, the association will contact you and expect you to remedy the violation using the recourse available to you through your lease agreement. If you are unable to correct the violation, the association may pursue appropriate legal action against the tenant, and possibly against you.
The association asks that you provide the manager with the names and contact information of your tenants. The association will add your tenants to its mailing list, and they will receive the newsletter, invitations to participate on committees, notices of social activities and general Association-related information. This information will also be used in case of emergency.
Follow these simple steps and you, the tenants and the Association will all have a positive Community Association living experience:
Provide your tenants with copies of Association rules.
Educate tenants about the need to follow Association rules, and see that they comply.
Advise tenants on the proper use of Association facilities.
Use a written lease agreement.
Make sure your lease requires tenants to comply with all Association governing documents.
Provide the Association with contact information for your tenants.
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What is this entity that collects your assessments, mows the lawn and occasionally throws a party? One way to think of your Community Association is as a service organization that provides three types of services to owners and residents.
Community maintenance services¾collecting trash, publishing the newsletter, updating the website, conducting meetings and sponsoring social activities.
Governance services¾ fulfilling legal obligations, resolving disputes, enforcing community policies, administering design review policies, and recruiting new volunteer leaders.
Business services¾operating and maintaining the common areas, competitively bidding maintenance work, investing reserve funds, developing long-range plans and collecting assessments.
The Board and your Community Manager make every effort to deliver these services fairly and effectively to protect and enhance the value of our homes-and the lenders' interests in your homes. They also strive, through collective participation and mutual decision making, to preserve that intrinsic value called "quality of life" that is at the heart of the Community Association concept.
Few events in life are more exciting than buying your first home. We're glad you've chosen a community that MSI manages! You're now a member of a Community Association. We're proud of the Association's we manage and trust it will contribute to the quality of your experience in your community. Here are a few tips and bits of information to help you make the most of Community Association living.
Your Own Space
There's one important difference between renting and owning a home that you need to keep in mind. Unlike renting, your unit and its upkeep belong entirely to you. You're responsible for all maintenance for any part of your home that is used only by you or your family. So, when the faucet leaks, the first person to call is your favorite plumber, not the association manager.
Common Elements and Assessments
The community has a number of common areas and services-like the grounds and the maintenance to keep them attractive and enjoyable. We share these areas and their expenses when we pay our assessments.
Community Rules
Because many residents share the common areas, it's necessary to have a few basic rules so everyone can enjoy the community. If you don't have a copy of the community rules, please go your Association's website or contact your Community Manager.
Membership
When you bought your new home, you became a member of a Community Association. Membership entitles you to attend and observe Board Meetings and vote in Board elections. You may even want to consider running for a Board seat yourself. Your community thrives because residents volunteer for committee assignments and eagerly stand for Board elections. Get involved-we need you.
Please contact your Community Manager for more information or if you have questions about the association.
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You are among the more than 60 million Americans who live in homeowners associations and condominium communities. We think most residents are happy living in their community-and we certainly hope you are among them-but how do these 60 million residents feel about their own Associations? Are they happy with their elected Boards? How do they feel about the rules?
The Foundation for Community Association Research, an affiliate of Community Associations Institute (CAI), sponsored a national public opinion survey to answer these and other questions.
The research, conducted by Zogby International, shows that more than seven in 10 Community Association residents say they are satisfied with their Community Association experience. Only 9 percent express dissatisfaction, and 19 percent are neutral on the question.
Here are more findings from the November 2007 survey:
88 percent of Community Association residents believe their Association Board members strive to serve the best interests of the
community.
73 percent say their professional managers provide value to their communities.
77 percent say they get a good return for their assessments, while 20 percent expressed some level of dissatisfaction.
74 percent believe their Community Association rules "protect and enhance" property values. Only 3 percent say rules harm property
values, while about 22 percent see no difference.
According to Zogby, 86 percent of respondents said they knew they were moving into an Association when they decided to purchase or rent a home in their community. For 61 percent, the existence of an Association had no impact on their decision, but 30 percent said the Association made them more likely to buy or rent. Only 9 percent said they were hesitant to join an Association community. This finding should tell sellers and realtors that the existence of a well-run Association can and should be part of the sales pitch.
While these findings are positive, we'd like to think that we would do even better than the national averages. If you don't think that's the case, we encourage you to bring your concerns to your Community Manager or the Board.
More survey results are available online at www.caionline.org/about/survey.cfm
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