Condo Media - May 2021 - 24

Beyond the Bylaws

Homeowners
Insurance Matters
AS MENTIONED, the bylaws specify
the type of insurance the association
carries, but too many homeowners
assume it alone is sufficient for their
protection in the event of a loss in
their own units. This is not the case,
and both Eriksen and Brawley stress
the need to inform owners of the
consequences of relying on even
the " richest " among the association
master policies, the all-in or allinclusive coverage; none cover the
association's deductible, which can
leave them on the hook for upwards
of $10,000 or more. In fact, Eriksen
says when he drafts new governing
documents, he requires owners to
have HO-6 policies.
To make homeowners aware
of where the master policy leaves
off and where the individual policy
comes in, Brawley suggests having an
insurance agent meet with residents
to clarify how the HO-6 dovetails
with the master policy or circulating
a newsletter. " It can explain what the
master policy covers, who pays for
what, the amount of the deductible,
and what owners should do in the
event of a loss. "
Like Eriksen, Brawley believes
it should be a requirement for
homeowners to have their own
policy. " If there's no requirement, you
need to convince homeowners that
it's in their best interests to have a
HO-6 to provide the gap coverage
that covers the deductible. "

24

CONDOMEDIA May 2021

MONEY MATTERS
Eriksen says financial hardship
and limitations on access to
amenities during the pandemic
have raised questions about payment
of association fees upon which
the financial health of the entire
community depends. To those who
believe fees should be adjusted while
pools and gyms are closed, he says,
" Payment of association fees is an
independent obligation that has
nothing to do with an association's
decision to close the pool, gym,
clubhouse, etc. " However, he says
in dealing with residents who are
struggling financially, it is best to
attempt to accommodate them
individually, while at the same time
protecting the association's rights.
" If someone doesn't pay their share,
it places a burden on the others,
so while we must be sensitive to
individual hardship, we must ensure
the association's rights are protected. "
IFFY ISSUES
Brawley and Eriksen addressed
some common issues, including
the sensitive one of sex offenders
and some recently presented
or exacerbated by pandemic
considerations.
● Sex Offenders
Eriksen says that board members
may feel they have a moral
obligation to disclose certain
things to their residents, but
advises caution, lest they come
up against privacy rights.
Brawley says it's not the board's
responsibility to inform residents
about the presence of sex offenders
in the community, but they can
deal with what Eriksen calls " a
dicey topic, " by referring them to
public sites or their local police.
Eriksen agrees, saying, if there is
an inquiry, the board could issue a
general statement such as, " 'We're
not allowed to disseminate that
information, but we suggest you
contact the local authorities.'

That way, you put everyone on
notice that they have this option
to go and get information to the
extent that it's available. "
● COVID-Status of Residents
Brawley says to protect the personal
privacy of residents, the associations
she works with do not reveal the
identity of a resident known to be
infected, just that " someone in the
community has been infected. "
However, in the case of a worker
who gave permission, they were able
to notify residents, some of whose
units he'd visited.
● Noise
Brawley says most residents during
the pandemic and quarantine have
been " reasonably understanding "
about higher noise levels due to
online classes for children, adults
working at home, and everyone
having cabin fever and needing to
exercise at home. However, she says,
the biggest complaints are about the
noise made by maintenance workers
during the day, which previously
had been the ideal time to work
with jackhammers, leaf blowers,
and lawnmowers.
In the event of a complaint
that prompts a call to the lawyer,
Eriksen suggests the board attempt
to facilitate a " creative " solution.
" Sometimes just getting everybody
on a Zoom and discussing it enables
people to understand each other's
position a little better; we can also
discuss potential options such as
noise-dampening carpet or even
something as simple as changing
where people gather and play. "
● Electronic Meetings
The jury is still out on whether
the omnipresent Zoom meetings
that have largely replaced their
live and in-person versions since
coronavirus dominated the
conversation are technically
" legal " when it comes to conducting
official association business.
Condo Media - May 2021

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