Condo Media - February 2013 - 35

rior walls and insurance may not
cover the “leakage and seepage” that
results.
Basements rank close to roofs and
walls on Noblin’s list of under-appreciated and often unidentified insurance
risks. In New England, “everyone
wants a basement,” he says, “but 40
percent of them leak.” Concrete is
solid, he agrees, but it isn’t waterproof, and most insurance policies
won’t cover water damage in basements. Inspection, again, can help
reduce the risk by making sure water is
directed away from the building. Drain
spouts are an obvious target and easily
redirected if necessary, but the grading
is also important, and not so easy to
adjust. “It’s hard to keep water out of
a building that is two feet lower than it
should be,” Noblin says. “That’s when
you find exterior sump pumps and
other crazy stuff,” added later to deal
with the problem.
Board members and managers assessing insurance risks should also focus
on decks, many of which were not
attached as firmly as they should have
been when the buildings were constructed. Those aging structures aren’t
just a cosmetic issue, Noblin warns —
they are a health and safety hazard,
highlighted by periodic reports of
decks collapsing and causing serious
and sometimes fatal injuries. Noblin
recalls situations in which owners, concerned because their boards wouldn’t
address the problem, have called building inspectors, “who have condemned
every deck on a property.”

What Owners Do
Condominium managers and trustees
focus, understandably and appropriately, on the maintenance of common
areas, but proper maintenance of individual units is equally important in
controlling insurance risks. Association
boards can’t oversee the maintenance
of individual units as they do the
maintenance of common areas, but
they can and should encourage owners
to keep up with repairs and make it
easy for them to do so. Some boards

develop maintenance checklists for
owners highlighting particular areas of
concern, such as:
• Windows and doors. If not installed
and sealed properly, leaks can seep
into the walls, creating problems
throughout a building.
• Showers, sinks, and toilets — also
obvious sources of leaks.
• Washers and dryers. Frayed hoses or
loose connections can leak; clogged
dryer vents are potential fire hazards.
• Fireplaces. A fire caused by poor
maintenance of one owner’s fireplace
could damage or destroy an entire
community.
Simple and relatively inexpensive precautions can go a long way toward
reducing property damage risks. For
example, automatic shut-off valves can
prevent small leaks from turning into
damaging floods; temperature alarms
can alert neighbors or association staff
if snowbirds have set their heat too
low or if the heat fails when owners
are on vacation, preventing frozen
pipes and the damage they can cause.
Some communities have rules requiring owners to notify management if
they are going to be away for a long
period — a policy that many insurers
like to see.

Liability Risks
Security and safety are the obvious
concerns when you are considering
risks that could harm residents or visitors. On the security front, making
sure entrances are locked, common
areas well-lit and security rules
enforced are obvious risk-management
steps. While experts agree that security
cameras don’t do much to deter crime,
they can improve a community’s risk
rating. Douglas Thayer, CPM, president of the Massachusetts-based management company, Thayer &
Associates, AMO, recommends
installing security cameras in elevators.
They don’t prevent elevator-related
injuries, he says, but they do discourage owners from claiming incorrectly

that they were injured when the elevator stopped unevenly between floors.
Making sure smoke and fire alarms
are working are obvious safety precautions that can limit property damage,
as well as liability risks. Slip-and-fall
accidents — a leading source of injury
claims in condominium communities
— can be reduced by clearing walkways and parking lots of snow and ice
and keeping them well-maintained.
Repairing stairs and handrails is equally
important. Insurers also want to see
sensible and consistently enforced rules
governing the use of swimming pools,
exercise rooms and playgrounds — all
of which create potential safety risks.
Pool rules should include, among
others:
• Limiting the hours of operation.
• Having a fence and locked gate in
place to bar access when the pool is
closed.
• Banning alcohol at poolside.
• Establishing an organized program
for maintaining pool equipment and
monitoring water quality.
For playgrounds, using equipment
that is highly rated for safety and
maintaining it are obvious precautions.
For exercise rooms, automatic door
locks are essential, as are maintaining
the equipment and keeping floors in
locker rooms, saunas and showers dry
and slip-free.
Communities with party rooms
should have rules governing their use,
among them: requiring owners using
the facilities to provide proof of insurance and either prohibiting alcohol or
requiring anyone serving it to obtain a
“special events” policy naming the
association as an additional insured.
Personal injury is a serious liability
risk for community associations, but
it’s not the only one; associations and
their boards can be sued for virtually
anything they do or fail to do. The
best protection in this area is a set of
well-designed policies and procedures
governing how decisions are made and
how rules are developed and enforced,

CONDO MEDIA • FEBRUARY 2013

Condo Media - February 2013

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