By Brad Henderson, Network Insurance Services

It's no secret, the marketplace for habitational insurance is changing rapidly. What used to be a broad offering of insurance carriers and products has now been whittled down to a select few insurance carriers offering products that 10 years ago no one would have thought viable options. The marketplace for habitational insurance today is a hostile one. 

Winds of change are driving the property insurance market in this new direction. Hurricane Harvey hit Texas in August of 2017. Harvey was followed by hurricane Irma in Florida, which was followed by hurricane Maria hitting Puerto Rico shortly after. The losses from these storms amount to over $100 billion dollars.  

It’s not just hurricanes that are causing the disruption to the marketplace. Wildfires devastated over 1.2 million acres of land in California in 2017. And as we are familiar with here in the Rocky Mountains, hail storms are becoming more frequent and more damaging than ever. Colorado experienced the costliest hail storm in our history on May 8^th of last year, with insured losses exceeding $1.4 billion dollars. 

With natural disasters on the rise, insurance carriers are taking note (and losses) and adjusting their underwriting discipline to remain profitable. Over the last few years, carriers have introduced percentage deductibles for Wind & Hail losses as a method to insulate them from this catastrophe. The deductible is a percentage of the Total Insured Value of the property, not the value of the claim. 

For example, a building with $10,000,000 in Total Insured Value may now be subject to a 2% Wind/Hail Deductible, or $200,000. Many insurance companies have recently announced that they are moving to a mandatory 5% Wind/Hail Deductible on all habitational accounts. That $200,000 deductible just increased to $500,000.  

Insurance carriers are also becoming stricter on enforcing a ‘No Grills on Balconies’ underwriting guideline to protect themselves & their customers from life safety claims related to fires. The National Fire Protection Association (NFPA) indicated an average of 8,900 grill fires occur per year in the United States.  

These 8,900 fires cause an annual average of 10 civilian deaths, 160 reported civilian injuries, and $118 million in direct property damage. While gas grills may seem safer than charcoal, 83% of grills involved in home fires are fueled by gas. State & local fire codes vary with respect to grilling on balconies, however many insurance carriers are following the standard adopted by the NFPA which prohibits grills within 10 feet of a frame multi-family structure. 

While its clear that the tides are changing in the property insurance market nationwide, there are ways to prepare the associations you manage for these changes and insulate them from dramatic changes to their policies. 

With respect to the increasing Wind/Hail deductibles, there are a couple of solutions to consider. Depending on the by-laws of the association, there may be little to no flexibility in moving to a percentage deductible. Deductible buy down policies can be put in place to cover the difference in the deductible offered by the insurance carrier and what is required by the associations by-laws. With more flexibility in the by-laws, the tenant’s policies can possibly be structured in a way to offset the assessment to the owners for their share of the Wind/Hail deductible. 

Educating the board of directors of local fire codes and communicating them to residents is a proactive way to soften the blow that many who have had grills on their balconies for 20+ years will no longer have that option. Additionally, most insurance carriers will allow for electric grills on balconies as a substitute to their open flame counterparts. 

Network Insurance Services has been partnering with property managers and the communities they represent for nearly 20 years. In a chaotic and rapidly changing insurance market, experience makes the difference. Our office is certified by DORA to offer CE Credits to Community Association Managers through our education on these topics in further depth. As one of the Denver Business Journals Top 25 rated Colorado Insurance Brokers and a member of CAI-RMC, we have the resources and expertise to help our customers weather the storm of today’s rapidly changing property insurance market. 

By Derek O’Driscoll, CPPA, SPPA, AIC, Impact Claim Services

Colorado ranks #2 in hailstorm property losses, with estimated losses exceeding $2.286 billion over the last five years. Subsequently, the dynamics and requirements for proper recovery after a hail and/or windstorm have evolved. It has never been more challenging for Colorado Community Associations to fully recover all amounts owed under an insurance policy following a damaging hail or wind storm. 

The goal of every insured, in the event of a loss, is to recover all money properly owed under its insurance policy as quickly and painlessly as possible, so damaged property can be repaired. When explaining the anatomy of a hail claim to policyholders, I use a simple analogy of the two “hurdles” that must be jumped in order to fully recover after suffering a hail and/or wind storm loss. Those two hurdles are the “Coverage” hurdle and the “Amount of Loss” hurdle. Both hurdles uniquely affect the claims investigation and adjustment processes, as well as the settlement or dispute resolution methods available to an insured community in the event of a disagreement with their insurance carrier.

The Coverage Hurdle

Simply explained, overcoming the coverage hurdle is accomplished upon the acknowledgement by an insurance carrier that a loss has occurred and caused damage to property, that the damage occurred during the insurance company’s policy period, and that the loss was caused by a peril that the applicable insurance policy insures against. 

The coverage hurdle is overcome when the carrier acknowledges a single dollar is compensable under the policy for the given loss, even if the dollar value of that damage is below the deductible. Overcoming the coverage hurdle can be as simple as an adjuster inspecting the property and confirming there is coverage due under the policy, or it can require an exhaustive investigation by the policyholder and experts to corroborate the cause and extent of the loss and that coverage is due under the policy. For a policyholder, establishing the cause of loss and overcoming the coverage hurdle frequently requires a comprehensive investigation utilizing the services of specialized experts such as Forensic Meteorologists, Forensic Engineers, Building Consultants, Roofing Consultants, Contractors, and scientific laboratory testing.

One of the most common defenses of insurance companies in a hail claim investigation is what the industry refers to as “post loss underwriting”. That is to evaluate and take into consideration the condition of the property only after a notification of loss is provided, rather than at the inception of the policy and the acceptance of the policyholder’s premium and the promise of coverage in the event of a loss. This generally goes hand in hand with the company’s assertion that any observable hail damage to a building predated the inception of their company’s policy period. This defense is common with insurance companies in hail claims, specifically in Colorado, due to the frequency of hail storms and the overwhelming amount of hail caused damage that goes unidentified by policyholder’s on a year over year basis. This commonly leads to an insurance company identifying a historic weather event that they assert was more severe than that of the pending claim, and the subsequent attempt to place the cause of the damage on that other storm and the insurance company whose policy was in effect at that time, seemingly without limitation. Our firm has personally experienced insurance companies attempt to attribute hail damage to a storm 30 years prior to the inception of their policy.

What is important to understand is the impact of the specific type of insuring agreement in your insurance policy, on the burden of proof that must be met in order to assert any exclusion under a property insurance policy. Specifically, does the policy provide coverage on a “Named Peril” or “Open/All Peril” basis. This distinction has a direct and significant impact on who bears the burden of proof in establishing its claim and corresponding position on the loss and subsequently has a profound impact on an insurance company’s attempt to “Post Loss Underwrite” a loss. It is important that an insured understand the nature of its coverage, so we encourage community associations to consult its agent, attorney or a licensed public adjuster.

There are several steps an insured can take to prepare for a possible claim due to hail and/or wind damages that can be instrumental to overcoming the coverage hurdle as painlessly and expeditiously as possible. The most critical steps are:

Obtain Proper Documentation of Property Conditions NOW 

Having a full analysis of your property done by a well-trained insurance claims professional will ensure that all facts and evidence that can become of material significance are fully and properly preserved into evidence. This should include some baseline testing of the building envelope such as moisture surveys, leak mapping, and complete photo documentation. Having such an evaluation done by typical contractors and/or maintenance professionals will not suffice.

Obtain Prior Insurance Inspection Reports

Request a copy of any property inspection reports and underwriting reports that have been performed by your insurance company, agent or broker, to include photos. These reports can provide crucial evidence in support of a community association’s claim, however they can be nearly impossible to obtain following a notification of loss, so be proactive and get them now.

The inability to overcome the coverage hurdle relegates a policyholder to resolving a claim dispute in a Court of proper jurisdiction, as coverage disputes cannot be adjudicated in any other venue. Subsequently, the coverage hurdle is the most important to overcome in the pursuit for a fair and complete settlement by an policyholder in the most painless manner possible.

The Amount of Loss Hurdle

Overcoming the amount of loss hurdle is the process of identifying and agreeing to the scope of the covered damage and the corresponding costs associated with completing those repairs. In my experience, this is where the majority of claims encounter disagreements, and conflicting positions between policyholders and insurance companies arise, for two prevailing reasons; The first is failure by an insurance company to fully investigate a loss with a view to identifying all damage potentially covered, sometimes combined with employment of outcome-oriented experts, consultants and contractors, who whether intentionally or unintentionally, undervalue the extent of damage and the amount of loss.

Quite apparently, insurance companies have a financial interest to minimize the amount of a claim payment, which may lead to a practice of failing to investigate and identify all damage that is compensable under a policy issued. Their investigations are frequently abbreviated and superficial when compared to that of a policyholder who has retained professionals to conduct a complete and thorough investigation of their own. These complete and thorough investigations frequently expose extensive omissions and oversights on the part of an insurance company. I cannot begin to quantify the amount of time our firm spends overcoming these types of superficial or misleading investigation results and expert analyses, but it is without question the overwhelming majority of our time spent in most hail and/or wind claims.

In addition to incomplete and truncated investigations, insurance companies are the faucet by which many contractors, engineers and construction consultants rely for a steady stream of business. The service providers are commonly beholden to these insurance companies and will do what they must to keep insurance companies happy. This usually means investigation results, scopes of repairs, and estimates that serve an insurance company’s needs, but are rarely congruent with the coverages purchased by a policyholder or compliant with the general best construction practices in the industry. This factor also frequently contributes to suppressed claims payments and disputes regarding the extent of damage and the amount of loss.

Dispute Resolution

Unlike a coverage dispute, which again can only be put before a Court, a dispute regarding the amount of loss can be resolved in several alternative fashions. Most policies of insurance outline an alternative dispute resolution method called Appraisal. In an appraisal, both the Insured and Insurer select and retain an appraiser, who will take a fresh look at the claim and come to their own independent conclusions of the “Amount of Loss”. Both the chosen appraisers will also select an Umpire, who will be the tiebreaker in any disputes that the Appraisers cannot resolve amongst themselves. The Appraisal process is a powerful alternative dispute resolution method, which is intended to be a faster and less costly remedy when compared to litigation. An appraisal also puts an “amount of loss” determination into the hands of industry professionals – Insurance Adjusters, Public Adjusters, Engineers, Contractors, Lawyers and Judges – which generally leads to a more accurate determination of the amount of loss, when compared to that of a jury of civilians unfamiliar with insurance principles and construction requirements.

In addition to appraisal, disputes regarding the amount of loss can be resolved through mediations or arbitrations, which can also be a more expedient, inexpensive, and accurate remedy when compared to litigation. This is why the Coverage hurdle is so important to cross over when dealing with a hail and/or wind claim.

Summary

Insurance policies are complicated, as are their provisions and how they impact the claims investigation and adjustment process, the duties and obligations of the insured in the event of a hail and/or wind loss and the methods for resolving disputes.

Most community associations do not appreciate that under an insurance policy it is incumbent upon you to present a claim for damages to your insurance company in the event of a loss; that is to say, it is your responsibility to tell your insurance company how much it owes you and why.  Understanding how varying types of insuring agreements and forms affect the burden of proof, how a community association’s governing docs and insurance policy integrate with coverage, and how principles of insurance drive the amounts that are due to a community in the event of a hail and wind loss requires extensive experience and specialized training. It is imperative to proper recovery and ensuring both claim hurdles are overcome, that policyholders secure independent evaluations from specialized professionals following a hail or wind storm, rather than relying solely on your insurance company to tell you what they owe you. 

Never assume that your insurance company has conducted a thorough, complete and fair investigation. No matter how long their investigation takes, how many consultants or experts they retain, how polished their expert’s reports are, or how well thought out their position appears to be - CONDUCT YOUR OWN INVESTIGATION! 

About the Author

Derek O’Driscoll is a Licensed Public Insurance Adjuster, and the President of Impact Claim Services, LLC, a Colorado based public adjusting, claims management and roof consulting firm. Derek and his firm specialize in securing fair and complete recoveries for property owners on large complex losses caused by hail and wind, specifically to commercial and multi-family properties throughout the country. Learn more about them at www.impactclaimservices.com 

By Joel W. Meskin, Esq., CIRMS, CCAL Fellow, MLIS, McGowan Program Administrators

Volunteer board members are often baffled and incredulous when someone challenges or complains about a decision that they have made, a rule that they have been changed, or a special assessment that they have issued.  I have touched in one way or another between five and six thousand claims and/or lawsuits against community Associations and their volunteer board members. As I travel around the country, people ask me what I have been able to distill from all these claims. Without skipping a beat, I respond by telling them that "ignorance is not bliss"!

The "ignorance" I refer to is twofold. First, unit owners do not read the governing documents they have agreed to comply with prior to purchasing their home in a common interest association. In most cases, these unit owners probably do not read the governing documents until they have an issue with the board, the association or their neighbors. 

Practice Pointer 1: read the governing documents before you buy; ignorance of the governing documents is not a defense and an association member is presumed to have read the documents he or she has agreed to when they purchased their unit.

Second, the volunteer board members turn their volunteer board position into something beyond its purpose and their authority. This is further exacerbated by the fact that these volunteer board members are often the same unit owners that have not read the governing documents. 

Practice Pointer 2: Each association member who wants to join the board should be required to confirm that he or she has read the governing documents before agreeing to become a board member.

What comes to mind each time this twofold dilemma comes up is a pearl of wisdom my father used to share with me. He would say "why do people never have time to do things right in the first place, but always have time to fix them"? 

Practice Pointer 3: Each board should have an annual board training, even those who have been on the board.  The value of an annual training far outweighs the cost, if any, as well as the effort.  Both items will lead to both monetary and time savings when the board knows how to operate the board.  The National CAI has great resources as well as on demand video courses on training.  There is no excuse for not taking the time to prepare for a board position.

I tell boards and managers that in the normal course a board meeting should not take more than an hour. Yes, certain issues create exceptions, but that should in fact be an "exception." In response, I often hear "yah, right." The key is for board members to understand their obligation, responsibility and treat the management of the association as the business it is. 

The board is a body comprised of individuals that is charged to manage the association pursuant to the by-laws and relevant statutes. The board is a body that makes decisions and policies and delegates to the individual who will carry out the delegated matter. When a board member exits the properly noticed board meeting, they have NO authority to act in their capacity as a board member except pursuant to the delegated authority expressly given them by the board during a properly noticed board meeting, or proper consent to act without a meeting. Remember, each board member has "one" vote whether he or she is also an officer of the association such as the president, Vice President or other.

Most delegated tasks by the board are given to the community association manager if there is one, or employees. Sometimes, there is no CAM or employee, and the action is delegated to a volunteer board member or other association member volunteer. In that case, the board member is carrying out the delegated action as a "volunteer" and not in his or her capacity as a board member. 

Practice Pointer 4:  Remember, a board member is not an employee, and apathy is not a defense.  If the board member says I have to do it, because no one else will.  However, if no one else will, there is a deeper issue that must be addressed, because again the "volunteer board member or "other volunteer" is not an employee.  If no one will step up, the board should hire a management company or an employee.  If the board is not willing to do that, then the board should go to court and seek a receiver which will end up costing the board and the association the money they did not otherwise want to spend.  At the end of the day, the board is charged with protecting the association's assets and must take the steps to do so.

In addition to understanding the role as a board member, the following are additional practice pointers that will help simplify and shorten a board meeting and mitigate claims.

• The board members must open, read and prepare questions, if any, on the issues to be addressed on the agenda.  The single biggest waste of time in board meetings are board members who come unprepared and spend time getting up to speed during the meeting.
• Adopt a form of Roberts Rules of Order and stick to them.  Even if the board are close friends and the use of rules seems awkward, the day a rogue unit owner or someone not playing with a full deck shows up, having in place a consistent set of rules will be worth its weight in gold.  If rule are first used with respect to a specific individual, the door to discriminatory application of rules is opened.  These rules should include a limited time for speaking by unit owners at a board meeting.
• Have a prepared agenda and stick to the agenda.  If there are items that are not on the agenda, they should be tabled for another meeting.
• Do not tolerate a lack of civility or an individual who insists on disrupting a meeting.  Do not engage that individual and adjourn the meeting to discuss further action with counsel.  Counsel may need to seek a court order.  A court may require a security guard and put the cost on the disrupter.
• Just because someone asks a question does not mean an answer must be given.  There may be questions out of order or otherwise inappropriate.  This is why an established set of rules are warranted.
• Whenever possible, even if an open meeting is not required by the governing documents or statute, have an open meeting to avoid any appearance of secrecy or conspiracy.
• Prepare a short video regarding "life in our community."  This can identify the governing documents, identify how the association is managed and who is eligible for the board and rules they may be unique to this association or to life in a common interest development.

Understanding the board's duties and obligations and making sure unit owners receive, read and ask questions about governing documents is the best risk management tool the association can use.

By Joel Sebern, Lallier Construction, Inc.

A roof system is the most vulnerable part of a building's exterior. Extreme Colorado temperature changes, along with wind, rain, hail, and snow all affect a roof system's performance. 

Performance of a roof is based on good design, quality materials, proper installation, and a preventive maintenance program. Roof maintenance is critical to preventing roof problems and keeping the roof in watertight condition. Early identification and repair of roof problems will help provide a long lasting roof system.  

If your roof has been impacted by hail or wind, below are a few tips to help you through the process of restoring your roof system.

• Prepare to file an insurance claim by gathering copies of your policy and call your insurance company as soon as possible after the event to request an assessment. The insurance company must determine if there is sufficient damage to the roof system to declare it a total loss or if repairs can be made

• You should call a professional roofing contractor and ask for an inspection and repair or replacement estimate. If there are any discrepancies between the insurance adjuster’s findings and the roofing contractor’s findings, you may request a re-inspection from your carrier. During a re-inspection, the insurance adjustor meets with the roofing contractor to review your roof damage together. Re-inspections are common. 

• Assessing hail damage is accomplished by a roofing inspection, which usually occurs several days to several months after the hail event. Determination of whether hail fell at a site may be made through statements and weather reports. Inspection of thin, aluminum fixtures helps verify hail impact. 

• Hail damage to asphalt shingles includes granule loss, material removal at the edges of shingles and penetration. New asphalt shingles are more resistant to hail impact than older shingles because asphalt becomes more brittle with age. In cases of severe wood splitting, significant granule loss, shingle penetration and fracture, shingle replacement may be required.  

When storms damage your roof, dealing with the aftermath can be stressful. When it is necessary to hire a roofing contractor, be cautious about opting for the lowest bid. If it sounds too good to be true, it probably is. Price is only one factor in selecting a professional roofing contractor; professionalism and quality workmanship also must be considered. Take time to evaluate potential contractors before any roofing work begins.  A reliable and professional roofing contractor should meet the following criteria: 

• A permanent place of business 

• Experience with many styles of roof systems 

• Proof of insurance / license

• Quality company safety program 

• Evidence of industry professionalism such as proof of training and manufacturer certifications 

• Financial stability 

• Submit a written, detailed proposal

• Valid warranties on labor and materials

• References in Colorado (Proceed with caution if the contractor only provides out-of-state references) 

• Maintenance programs

**Please be aware of contractors who will only accept cash payments and “up-front payments” before materials are delivered to the site.

Lallier Construction, Inc. has been roofing in Colorado’s climate since 1989. We offer free consultations, inspections, and estimates at times that best fit your busy schedule.  Lallier Construction provides its services in both the Residential and Commercial Sectors. Services we provide are New Construction, Re-Roof, Warranty Claims and Insurance Claims.

By Timothy M. Moeller, Esq. and Bujar Ahmeti, Esq., Moeller Graf, P.C.

As the snow begins to melt and people trade their ski poles for sunblock, community associations across Colorado will begin to turn their attention to opening their swimming pools.  While everyone loves to have fun in the sun, maintaining and operating a swimming pool may present legal challenges for community managers and boards of directors.  While some issues are unique, there are some questions that arise fairly regularly. Below you will find what a typical conversation may look like.   

A local swim league approached the association and asked if it could use the pool to host its swim meets.  Are there any legal issues of which we should be aware?

Typically, community association pools are private, and as such, are not subject to Title III of the Americans with Disabilities Act (“ADA”). Allowing a local swim league (and its supporters) to use the association’s swimming pool may transform the swimming pool from a “recreational facility” to a place of “public accommodation.”  As a result, the association would have to ensure the swimming pool was compliant with Title III of the ADA.  This was confirmed by the Department of Justice in a published Q&A regarding ADA accessibility where the DOJ stated that if a swimming pool/club located in a residential community is made available to the public for rental or use, then it is covered under Title III of the ADA.  A pool categorized as a “public accommodation” would have to meet the ADA Standard for Accessible Design, which provides:  

• If the pool is less than 300 lineal feet, then it must have at least one accessible means of entry, which must either be a chair lift or sloped entry.
• If the pool is more than 300 lineal fee, then it must also have a second means of access, which can either be another lift or ramp, or it can also be a transfer wall, a transfer system, or pool stairs.
• Clear deck space must be designated for easy access to the pool and easy transfer from a wheelchair or mobility device.

We have concerns about keeping the pool sanitary for all of our residents if we allow children in diapers to use the pool.  Can we implement a rule that prohibits any person under the age of 4 from using the pool?

Even rules with the best intentions can find disfavor with the law.  The Fair Housing Amendments Act (“FHAA”) prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, familial status and disability.  Familial status is defined, in pertinent part, as “one or more individuals (who have not attained the age of 18 years) being domiciled with a parent or another person having legal custody of such individual or individuals.” Some ask, “How can we be discriminating against families with children if we will allow children who are at least 5 years of age to use the pool?”  When reviewing a rule or regulation for a potential fair housing discrimination claim, a reviewing court will look to whether there is a less restrictive measure to accomplish the association’s objective.  Here, instead of enacting a rule adopting a complete ban on children under a certain age for sanitary reasons, an association is better served to promulgate a rule requiring an incontinent person or child who is not fully toilet trained to wear appropriate swim diapers or other appropriate waterproof sealing undergarments when entering the pool.   

A homeowner who is disabled attended the board meeting last week and requested the pool be modified by installing a chair lift so that the homeowner can use the swimming pool.  Does the board have to allow installation of the chair lift, and if so, who pays for it?

Under the FHAA, a community association may not discriminate against anyone with a disability by treating said person less favorably than those that are not disabled.  The association must permit disabled persons to make reasonable modifications to existing dwellings or common areas that are necessary to afford the disabled person full enjoyment of the dwelling.  A “reasonable modification” is a structural change made to existing premises, occupied or to be occupied by a person with a disability, in order to afford such person full enjoyment of the premises.  However, an association can place reasonable conditions on the modifications.  These conditions include requiring the disabled person to: (1) provide a reasonable description of the modifications; (2) provide reasonable assurances that the work will be done in a workmanlike manner; (3) make the modifications in accordance with the association’s reasonable aesthetic requirements that do not increase the cost of the modifications; and (4) obtain any required building permits.  Generally, the requestor is responsible for the cost of the reasonable modification.    

As is the case with operating any common area within a community association, a community swimming pool requires more than just proper chlorine levels to properly function.  Of course, a community association can mitigate any potential risks by ensuring compliance with its governing documents and any federal or state laws.

Timothy M. Moeller is a founding partner of Moeller Graf, P.C. and has practiced community association law exclusively since 1999.  

Bujar Ahmeti is an associate attorney at Moeller Graf, P.C. whose practice is dedicated solely to addressing the needs of Colorado community associations. 

By Casey Colvin, Heritage Roofing and Contracting, LLC

When the Colorado winter begins weakly whimpering its way toward us at a leisurely pace, there is no better time to consider those pesky preventative maintenance items we’ve put off to enjoy our prolonged fall Season. When looking at our community through the lens of maintaining a space shuttle it’s easy to over-inspect, over-repair and over-worry. When encountering this mindset, try to remember a little acronym we call “ARG!” 

Assess Damage

Typically, the easiest way to prevent future problems is to review the current ones; walking through a community looking for debris fallen from roofs, rust around existing roof penetrations, stains from downspouts on concrete, and any landscaping that may be washing out or concrete that has heaved. These tell-tale signs are often the beginning of a larger problem and a great place to start the hunt for pre-emptive repair. Once you’ve compiled your list you can work from the top down. 

Roof Maintenance

Inspect those roofs! Now I don’t mean walk around and enjoy the view, rather hire a licensed roofing contractor to inspect and document any real issues that may be present in the future. Areas to pay particular attention to are communities with flat roofs and tile roofs. While shingles can often be maintained with minor sealant touch up, a new pipe boot, or a replacement shingle, tile roofs and flat roofing membranes come with maintenance items all their own. Especially on units where mechanical equipment has been serviced; ask your contractor to inspect for tile breakage or excessive wear on flat membranes as high traffic areas will present leaks first. Also, ask your contractor to document any flat roofing membrane that is shrinking from the walls and any areas where water may be pooling in excess. If these items are not corrected quickly, costly repairs are sure to follow.

Gutter Cleaning

Get those gutters cleaned, because there is nothing worse than an overflowing gutter creating a skating rink in your community. Short of encouraging the Avalanche to enjoy your new practice rink, there is a large liability in slips, trips, and falls. Pay special attention during the cleaning as areas with larger build-up of debris are likely great candidates for a gutter guard system. By installing the gutter guard, you can eliminate a substantial amount of year after year gutter maintenance costs and keep that water where it belongs. 

Don’t forget the downspouts. These lateral drains are responsible for the lions-share of gutter overflows and are too often overlooked. Pay special attention to any downspout that drains into an underground pipe. If not properly cleaned and maintained they are prone to clogging, breakage, or blockage from vegetation growth. Be sure the contractor performing this repair takes the time to find the drain outlet, otherwise prepare for the flood! 

By Justin Bayer, Caretaker Landscape and Tree Management

Spring is officially upon us, and that means it is time to get your landscape ready for the growing season and cleaned up from the fall and winter.  April is arguably the most important time of the year for landscape in Colorado, and that is because there are many steps that need to be taken in order to set your community up for success.  

Irrigation

• When to start up the irrigation system is often a point of contention between landscape contractors, community managers, and HOA boards.  The temperamental weather in Colorado can make knowing when to fire up the system a bit confusing; March can be dry for weeks, leading residents to want to get the system up and watering, when out of nowhere a large storm can come through and freeze all of the lines, potentially causing damage to the system.  
• In order to avoid wasting water and money, we suggest aiming to turn on your irrigation system between April 15^th and May 1^st.  Even though the weather has been warmer than usual this winter, March and April have the tendency to be wetter months, which means you can save on your water bill by holding out for a bit longer before starting up your system.  
• As you gear up your irrigation system and start to fine tune it for spring and summer, make sure to inspect your system thoroughly.  You will want to make sure all of your pop-up spray heads and rotors are working optimally (covering the right area and not clogged) and that your drip emitters are working properly on your trees and shrubs.  Emitters and spray heads have a tendency to get clogged up during the winter, and if left unresolved, can lead to major problems down the road.  Along with doing a thorough check during the start-up process, your landscape contractor should be checking your irrigation system on a consistent basis during the course of the season to catch any potential problems early.  The sooner you notice an irregularity, the quicker you can get it resolved through your landscape maintenance team.

Turf

• If you are looking for the healthiest turf possible, you should plan to utilize aeration early in the growing season.  Aeration stimulates root growth by helping the turf soak in more water, air, and fertilizer.  Make sure to know where your sprinkler heads and rotors are if you decide to aerate, as this will help you avoid any potential damage to your system.
• Fertilization is a common practice to get your turf off to a full-bodied, healthy start, and to keep it that way by applying more fertilizer during the summer.  It is especially effective when combined with aeration.  Fertilizer can be done once per year, three times per year (recommended), or even up to five times or more per year if your community is aiming for that “golf course” look. 
• Make sure to rake and remove all winter debris from your lawn to get your lawn off to a great start.  During the summer, after the turf has gotten healthy and full, it can be beneficial to mow over any plant debris on your lawn and allow it to be mulched into the turf.

Weed Control

• After a dormant fall and winter for your landscape, you’ll want to start it off right by removing all weeds located in your lawn, planting beds, and around your shrubs and ornamental grasses.  Not only do weeds take resources from your plants, they take away from the relaxing aesthetic of a well maintained landscape.
• March and April (depending on the weather) is the best time to utilize pre-emergent weed control methods on your landscape.  Both turf and bed areas should be treated with an herbicide that is applied to the surface.  Water (rain, snow, irrigation, hand watering, etc.) will push the pre-emergent down into the areas where weed seeds lay dormant until they begin germination.  The pre-emergent ensures that the seeds are killed before they are able to grow and sprout out from the turf or the bed areas.   

Getting the proper start to your landscape maintenance is absolutely vital, and by following the tips and advice above you can ensure that your community will look healthy, green, and gorgeous all spring and summer!  

Caretaker Landscape and Tree Management is a privately owned and operated company with locations in both Colorado and Arizona.  Caretaker has been in business for over 30 years, and have built their reputation on customer service, exemplary communication, and through utilization of cutting-edge technology.   

By Andrew Loyola, Denver Elevator Company

An overwhelming number of owners and managers I speak with are either dissatisfied with the performance of their elevators or frustrated with the lack of communication from their maintenance provider. “I never see my mechanic but I sure see the invoice”.  “The inspector just came and all my tests are past due”

Here are some basic steps to follow to improve your elevator experience:

1. Maintenance Agreement: Understand what’s not covered, request hourly billing rates and make sure normal business hours are clarified in the contract. For example, you may consider normal hours to be 8:00am-5:00pm, however, their hours are 6:00am -2:00pm. This will reduce costly overtime invoices and repairs for work not included.

1. Scheduled Visits and Safety Tests: Make sure the frequency of visits, (weekly, monthly, quarterly) are clearly written in the contract and identify when the code required annual and 5 years safety tests were last performed.  For example, avoid vague language like “Regular Scheduled Visits” and hold your provider accountable to timely safety testing.  This will avoid unnecessary inspection violations. 

1. Maintenance Control Program (MCP): Code mandates that each elevator has a MCP log kept in the elevator machine room and all maintenance, repairs and testing be documented once performed. Check your machine rooms to ensure cleanliness and the logs are on site and up to date. 

1. Contract Terms: Negotiate reasonable cancellation terms and avoid automatic long-term contract rollovers. Most elevator contracts require 1-3 months written notice of cancellation prior to the anniversary date or they automatically roll over.  It’s fair to give a company written notice of non-performance and give them a chance to correct the problem if a mistake is made or if there experiencing an intermittent technical problem.  It’s not reasonable that you can’t cancel your contract even though your maintenance provider hasn’t shown up in many months, safety tests are past due and you have no MCP documentation onsite?

To prolong the life of your equipment, ensure your mechanic communicates well, checks in and out and keeps you informed, doesn’t miss maintenance visits, keeps car tops, pits and machine rooms clean and painted, timely performs annual safety tests and documents performance in the onsite MCP log.

If your building is over 25 years old and the elevator equipment is original, it’s a good idea to start planning and budgeting for an elevator modernization.  How soon is an unknown? It really depends on the usage, type of equipment and how well it’s been maintained. The good news is, authorities having jurisdiction in your area will only mandate elevators be brought up to current code if you make a major alteration to the equipment, change in speed, capacity, controls just to name a few. 

Also, the State of Colorado Conveyance Division and the Denver Fire Department are implementing a couple of code changes everyone needs to be aware of. 

1. Effective January 2019, the code mandated annual elevator inspection (performed a 3^rd party inspector) needs to be within 60 days of the annual safety test (performed by the mechanic).  Your current service provider should assist with coordination at no additional cost.

1. Effective July 1, 2018 the City and County of Denver is mandating all the fire service key switches be standardized to a FEO-K1 type. We recommend Owners and Managers with units that fall under this jurisdiction request pricing and perform this work as soon as possible, to avoid inspection violations and or fines.

Andrew Loyola has over 30 years’ experience in the elevator industry and is President and Owner of Denver Elevator Company.

By Peter O’Brien, President Solutia Adjusters

In general, property claims should be filed when there is a benefit to the insured for filing a claim and should be avoided when there is little or no benefit to be gained. It is beneficial to the community to complete the steps below before filing a property damage claim, whether for a small water leak or a major hail event, since the repercussions of incorrectly filed claims can be significant for the long term financial solvency of the community: 

Verify that there is actual damage and confirm the extent of anticipated damage: Too often claims are called in for the wrong thing and/or for damage that is much less severe than anticipated. 

Confirm the date that the loss took place: Calling in a claim for the wrong date of loss can cause problems, including filing a claim with the wrong insurance company. 

Verify there is coverage for the loss or damage: Exclusions and coverage limitations exist in every insurance policy that could limit or exclude certain types or aspects of loss. 

Form a reasonable expectation of outcome: Before filing a claim it is best to have at least a reasonable expectation of the size of the loss and what benefit the community can expect after application of the deductible and any applicable policy limitations or exclusions. 

Meet the policy deadlines and timelines: There are requirements in most policies that claims be filed as soon as it is reasonably known that a claim is necessary. Once damage is known, it is important to move quickly through the decision-making process and file the claim on time. 

If you are unsure about a particular situation or have questions about claim best practices for Community Associations, please let us know. 

Peter O’Brien a founding partner of Solutia Adjusters. He managed large and complex claims for over nine years and provides proactive training and claims resolution solutions for communities and commercial property owners.

By Ryan Gager, Hearn & Fleener, LLC

The new year is upon us and it remains to be seen if 2018 will bring more changes to construction defect litigation. After years of both sides battling, 2017 saw two major decisions in the construction defect industry. First, was the introduction of House Bill 1279, a step towards construction defect litigation reform. Whether it was a step in the right direction or a step backwards probably depends on who you ask. The bill was touted as a bipartisan effort toward addressing the housing squeeze in Colorado. Construction defect has long been a hot topic in Colorado as developers and builders cite how easy it is for homeowner associations to sue, along with the high cost of insurance as the reasons there are very few condominiums being developed throughout the state. Homeowner associations and those representing them argue that it is their only recourse when a building isn’t built correctly.

HB 1279 requires that a unit owners’ association obtain approval through a vote of unit owners before filing a construction defect claim. The bill requires an association to notify all unit owners and the developer or builder of a potential construction defect action, call a meeting where both the HOA and developer or builder have an opportunity to present arguments and potentially remedy the defect, and obtain a majority vote of approval from the unit owners to pursue a lawsuit before bringing that lawsuit against a developer or builder.

If you are a homeowner in a community that always wanted to be more involved or know what was going on, this bill ensures that. All owners will be notified of a potential claim, and all will have a voice in a community-wide vote. Majority approval of the owner vote does not include nonresponsive owners and the court will determine whether diligent efforts were made to contact the owner, whether mail was undeliverable, whether the owner is occupying the unit, and if other contact information such as email or a phone number were used. All of this means that unit owners should keep all records and contact information up-to-date with their HOA, to ensure they can be part of the vote.

The other significant development in construction defect litigation last year, was the Colorado Supreme Court’s decision in Vallagio at Inverness Residential Condo. Ass’n, Inc. v. Metro. Homes, Inc. The issue was whether a condominium developer can place a provision in the project’s governing documents, a provision that requires that any dispute with the developer be summitted to binding arbitration and prohibits the condo unit owners from amending the document to remove that provision. The state Supreme Court ruled that the homeowner association was wrong to sue the builder after disregarding bylaws, including the provision, that require binding arbitration to settle claims of construction defects.

The building industry favors binding arbitration as a more streamlined way of dealing with allegations of defects. However, HOAs and those representing them argue that this decision gives too much power to developers and builders. It remains to be seen if developers and builders will now use this decision to place provisions in governing documents of all developments.

Whether these decisions are considered victories for developers and builders or not, developers and builders still need to continue to implement successful strategies to mitigate risks of construction defect litigation. These include third-party inspections, insurance programs, familiarity with state code and standard requirements, disclosures to homebuyers and turnover procedures to associations.

The one thing we do know is, based on the decisions and outcomes of 2017, we are a long way from a definitive solution to construction defect in Colorado.

Ryan Gager is the Director of Marketing at Hearn & Fleener, LLC, a construction defect firm serving all of Colorado.