Community Association Management Systems, Inc. Blog

Are you prepared in the event of a major storm?

Article Written BY:
Jayme Gelfand, PCAM

Vice President, Relationship Market Manager

BB&T Association Services

19631 State Road 7

Boca Raton, FL 33498-4766

(561) 251-1980

jgelfand@bbandt.com

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. 

Being proactive is the best way to show an association you are working in their best interest. Don’t wait until there is no water, no electricity and trees are falling all around you.