Page 10 - CooperatorNews NY November 2021

10 COOPERATORNEWS — NOVEMBER 2021 COOPERATORNEWS.COM Protecting Your Condo or Co-op from the Next Major Storm Get Ready, Stay Ready BY MICHAEL J. WILLNER This summer and early fall, several communities have had to reevaluate their for maintaining, repairing, and replac- massive storms struck the United States insurance coverage to make sure they are ing. If changes need to be made to that in rapid succession. Hurricane Ida cut a properly insured. huge swath of damage from the Louisi- ana coast to New England. Record flood- ing, tornadoes, and sustained high winds sociations are required to make certain repairs can or should be back-charged to damaged property in profound ways. In weather-related repairs, or whether those unit owners. the Northeast, Hurricane Ida exacerbated repairs are the responsibility of unit own- the damage caused by Hurricane Henri, ers. In some instances, associations that a common element is not necessarily the which had barreled into the New York sustained flooding lacked flood insurance same party responsible for paying for the metro area only about a week earlier. Many climatologists believe these levy special assessments on unit owners the governing documents contain ambi- storms represent a “new normal,” and to repair their buildings and units. In oth- that because of climate change, more fre- quent severe weather will be part of our ciations around claims related to who is lives going forward. As a result, everyone responsible for making certain repairs— from realtors, homebuyers, and insurance particularly when insurance companies age or sewage pumping issue, or a struc- companies to managing agents, board have disclaimed coverage. Could all this tural concern, make sure to address it. If members, and attorneys are now grap- pling with how to protect properties from ed by the application of some common of your property needs to be changed to future storms. Condominiums, cooperatives, and homeowners associations have the same homeowners associations can use to be contractors, engineers, and other profes- concerns. Many boards have had to deal better prepared for the next weather di- with aging infrastructure, drainage is- sues, sewage problems, and foundation headaches that can result: seepage. Some communities didn’t realize they are located in lower-lying areas, and documents to determine which common are thus susceptible to flooding. Other elements the association is responsible make sure that they have a plan to pro- Some boards have also had to an- swer questions about whether their as- coverage and have had no choice but to repair or replacement of that element. If ers, lawsuits have been filed against asso- uncertainty and even acrimony be avoid- sense techniques? Below are 10 steps condos, co-ops, and concerns. Where necessary, consult with saster and potentially sidestep some of the Make sure your building envelopes are 1. Review your association’s governing condition. scheme, the governing documents should be amended. Also, review the governing documents to determine whether certain The party responsible for maintaining guities, they should be addressed by reso- lution or bylaw amendment. 2. Inspect the association’s buildings and systems. If you believe there is a drain- pumps need to be installed, or the pitch address runoff issues, investigate those sionals and obtain a topographical study. watertight and that the roofs are in good 3. Reach out to your local township to tect your community from possible storm surges, sewage backups, etc. If your town- ship oversees utilities or is responsible for maintaining a pumping station on the association’s property, let the township know of any concerns you have or repairs that are needed. 4. If your association’s engineer or ar- chitect determines that capital improve- ments should be made, be sure to pursue those improvements expeditiously. Flood waters don’t just destroy property in the short term; mold issues can persist long after the waters recede and cause associa- tions and unit owners substantial expens- es later. 5. Plan for capital improvements by having a healthy reserve fund, and con- duct regular reserve studies to make sure your building or association is prepared for unexpected expenditures. A reserve study should be based on an in-depth, onsite review of the association’s prop- erty every five years, then updated annu- ally to account for unexpected costs and new capital improvements. On average, most boards should be setting aside ap- proximately 20% to 40% of their annual assessments toward reserves. Also, review the terms of any existing loans the asso- ciation has and determine whether you have sufficient access to capital to address emergencies. 6. When necessary, special assess shareholders and unit owners to pay for emergent repairs, or adjust the associa- tion’s annual budget accordingly. While it’s difficult to convince unit owners to in- cur increased costs, when your engineers, architects, or contractors tell you of an emergent condition, you must grant those statements the weight they deserve. 7. Review your association’s general li- ability and directors and officers (D&O) insurance policies with your insurance broker to see whether you have or need flood insurance, have any coverage for sewer and drain issues, or if your policy has exclusions for groundwater, earth movement, and other issues that may complicate—or even preclude—future recovery. Also, make sure that you have MANAGEMENT continued on page 16