June 24, 2011
Dear Village Owners,
As reported in the May President’s letter, the cold weather this winter caused water pipes to freeze and damage 4 units. To date, our HOA does not have a clear policy regarding the deductible portion of the HOA insurance policy for owners. The BOD felt we need clear guidelines and policies for how to handle the deductibles so we asked our attorney to draft a policy for us to review and adopt at our next BOD meeting. If this Board Resolution is adopted, it will be recorded with Navajo County.
In conjunction with the deductible policy, the BOD discussed how owners could best protect their property.
The BOD recommends and advises each owner to do the following when you leave -
HEAT:
- Leave your heat on with the thermostat set @ 50-55 for the winter months.
- Monitor your utility bill for indications your furnace may not be working.
- Have someone occasionally check your unit.
WATER:
- Turn it off whenever you leave for an extended period.
- Have your ice maker water lines, washing machine and toilet hoses checked/replaced periodically.
UPPER/LOWER UNIT CONNECTION/COOPERATION:
- If a lower unit turns off their heat and winterizes their unit, the water pipes for the upper unit can still freeze and burst in the lower unit if the upper unit is using their water.
The BOD also discussed the process we will use for future damage claim(s):
- Once damage occurs, the homeowner is responsible for minimizing the damage to their unit and adjoining unit(s). If water pipes break, it means turning off the water as soon as possible and immediately obtaining a plumber to fix the problem. It is important that you keep broken water pipe(s) to show the insurance company and take pictures of the damage.
- The unit owner should notify a BOD member to determine whether or not the claim is large enough to turn into our insurance company (currently CAU).
- Our insurance company will assign an investigator to meet with you (or your rep) to review damage. You will need a contractor to quickly develop an estimate for drying-out charges (take up wet carpet & pad, remove wet drywall, insulation, etc.). Our current insurance policy does not cover mold damage (it’s likely your homeowners’ policy does not as well), so you will need to take the proper steps to prevent mold or you will be held responsible for the costs of mold removal. If the furnace has quit, you will need to get heat into the unit via fireplace, space heater, etc. to prevent further damage and to help with drying-out situations. Your contractor will need to develop an estimate for restoring your unit and obtain an agreement with our insurance company. If your contractor finds surprises later, they will have to negotiate with the insurance company for changes in the costs the company will reimburse.
- Once the insurance company agrees to the estimate, they will send a check to the HOA (less deductibles and possibly holdback monies).
- When your contractor and you agree to an estimate, you can contact the HOA for down payments so the contractor can begin his repairs.
- When all repairs have been made and the homeowner and the HOA are satisfied that repairs have been done properly, the HOA will pay the monies it has received from the insurance company and assess the deductible per the new policy.
This process is likely similar to any damage you might have occurred at your personal residence.
Owners should understand that the HOA pays for the insurance coverage but is not responsible for the inconvenience and damage you incur. We also recommend you review your personal insurance supplement so that you have the proper coverage to minimize the overall costs. Damage to personal property, clean up, moving furniture is not covered by the HOA policy.
If you need a copy of the association’s insurance policy, you can obtain the information at our web site www.thevillageinpinetop.com or contact the HOA Secretary Fran Stephens.
Allan Johnson
HOA President
