Are you prepared in the event of a major storm?
Article
Written BY:
Jayme Gelfand, PCAM
Jayme Gelfand, PCAM
Vice
President, Relationship Market Manager
BB&T
Association Services
19631
State Road 7
Boca
Raton, FL 33498-4766
(561)
251-1980
Preparation is the hallmark of good management
practices. The official hurricane season
runs from June 1 through October 31. To prepare for storm related events it is
best to have a plan in place prior to hurricane season for your communities. To
help you take this import step, we have created a checklist of some preparation
items you should include. Take the time now; if a disaster affects your
community, you will be glad you did.
Having a line of credit is one of the most important actions
you can take to allow for available resources to make quick decisions on
repairs and fund unplanned expenses.
FINANCIAL
- Fund
reserves at least partially; the absence of any cash reserves will hinder
an association’s ability to make a deposit to an available contractor
Consider a special reserve to fund insurance deductibles and/or items not
covered
- Consider
making arrangements for a line of credit with your bank, so that you will
have available cash to meet emergencies and secure contractors
- Consider
applying for an association credit card to allow managers to purchase
preparations or recovery items
- Seek a
loan from your bank for reconstruction or upgrades to property including
storm proof windows and shutters
- Review
current investments in CDARS, ICS or Certificates of Deposit; know the
maturities and consider shorter terms or non-renewals during recovery if
funds might be needed to avoid early closing penalties
- Communicate
with your banker if your association or management company is closed
- Know
all of the available payment methods for your homeowners and remind them
in the event one of the methods is unavailable:
- US
Mail – Local post offices may be closed or mail not delivered
- Local
Branch – If power or internet is out in certain areas, does the local
branch accept payments?
- Online
payments by credit or debit card or eCheck – Are you enrolled to allow
your homeowners to pay online to avoid mail delays?
- ACH
– Encourage automatic payment to avoid mail delays and internet outage
interruptions
- Bill
Pay – Advise homeowners to use their bank or a bill-pay vendor to
initiate payments online
- Recognize
that because of storm related damage including post office delays and
power outages, you may receive fewer payments during this time or homeowners
may be late on payments
- Use
online banking services to transfer funds, monitor account balances and
retrieve bank statements – Be sure you know your online access information
- Keep a
printed copy of the banks contact information to use in the event you
cannot obtain electronically
INSURANCE
- DO NOT
UNDERINSURE;
- Request
your insurance carrier to conduct an engineering review of your facilities
- Gain a
clear understanding of items not covered by insurance
- Require
an annual board review of the deductible amounts of all insurance policies
and consider informing all unit owners of the results
- Remind
owners of the limits of the association’s responsibilities
OPERATIONAL
- Develop
an emergency plan to contact board members and managers immediately should
a dangerous situation develop; remember, the first responsibility of the
association board is to take the appropriate steps to secure the property
- Prepare
alternative means of communication; phone, text, email
- Prepare
staff
- Monitor
school closures for their impact on staffing levels
- Reassign
staff from closed offices to assist other functions
- Secure
important papers and sensitive information and back up records
- Create
a hurricane or storm preparedness guide for homeowners that includes
reminders of insurance, evacuation, pet arrangements etc.
- Consider
allowing board members emergency board powers in the event of a disaster
- Know
your bylaws and your state statues regarding rights and claims
PROPERTY
§
Conduct regular roof inspections
§
Inquire if roofing contractor offers annual
inspection/maintenance program
§
If your association is facing roof replacement
in the near future, consider alternative style and materials
§
Consider an independent engineering study of
your buildings, especially if the building is more than 10 years old; schedule
updates on a recurring basis
§
Pay attention to carports, which typically are
not as stable as other structures
§
Develop a building evacuation plan
§
Prune large trees and shrubs before hurricane
season arrives
§
If your association has rules covering the
allowable parking locations for boats, trailers, golf carts, etc., police rules
regularly
§
Protect association machinery, equipment, and
business records
§
Consider rules concerning personal property on
lanais and decks
§
Prepare common areas such as club house or pool
and secure items
§
Create an open lot to stockpile tree debris
§
Energy failures are one of the biggest results
of a storm. Electrical power outages can compromise elevators, air conditioning
and other critical systems
§
Take pictures or video of the facility and
preparation conditions
BUSINESS PARTNERS AND
VENDORS
§
Review your business partner and vendor
contracts and know what to expect
§
Maintain a healthy business relationship with
your service providers and vendors.
Courteous behavior and prompt payment of their bills will go a long way
to assure their timely response when you really need them
§
Engage a tree-trimming company with an agreement
that the association would be its top response priority in the event of
hurricane or storm related damage.
§
Secure appropriate vendors that can aid
immediately after a storm
§
Obtain bids if major reconstruction is
necessary. This process could take
months working with engineers and contractors before actual cost is
determined.
