The Importance of Loss Assessment Coverage
Insurance in an Association can be confusing. One important distinction in your personal homeowner policy package (commonly called an “HO6” policy) is Loss Assessment Coverage. This coverage is typically different from your “Real Property Coverage.” Real Property Coverage should cover your personal contents, coverage of building construction items like flooring and walls that may NOT be insured by the Association’s Master Policy (which can vary greatly by Association) and, at a bare minimum, coverage of all of those covered components up to the Association’s Master Policy deductible. Loss Assessment Coverage is separate and important to understand. At is core, it is actually quite simple. The Association typically assesses the owner(s) for their share of the Master Policy’s deductible in the event of a loss. The homeowner simply submits that letter, stating they’re being assessed to their HO6 carrier, and their HO6 carrier pays out that deductible assessment. *If the owner doesn’t have this coverage, it is out of their pocket and the Association will move to collect on it just as they would any other regular assessment (“dues”) or special assessment. This is becoming increasingly important because, for the past decade, Association Master Policies have had increasing deductibles – sometimes $25,000 or $50,000 on common losses; and almost all Association policies now have a separate percentage-based deductible for a loss related to wind and/or hail damage. This “wind/hail deductible” is often based on the building value and can range from 2-5%. In the case of a hail storm and loss, homeowners are susceptible to significant assessments to help the Association make up the deductible. Let’s go through three scenarios to help understand how Association deductibles work – and how (and why) Loss Assessments Coverage comes in to play. Scenario 1 – Condo Building Water Leak Unit 200 has a backed-up sink that caused water damage to unit 200 and 100 below. The Association has a $10,000 deductible on the Master Policy that has “all-in” coverage. Damage to both units totals $50,000. The Master Policy is going to cut a check to the Association for $40,000 (less the $10,000 deductible). The Association is going to assess both unit owners $5,000 to make up the $10,000 deductible. The Association is made whole on the claim and the loss/damages remedied. Scenario 2 – Fire to a Townhome Unit The end unit of a townhome complex sustains a fire and the unit is destroyed. The Association has a $25,000 deductible on the Master Policy that has “all-in” coverage, less “betterments and improvements.” Damage to unit is a complete loss. Value for the home is determined to be $200,000 to rebuild the unit back to the original specifications. The Master Policy is going to cut a check to the Association for $175,000 (less the $25,000 deductible). The Association is going to assess that homeowner (since it was the only unit affected) $25,000 to make up the deductible. The Association is made whole to rebuild the unit to the original specifications – the homeowner’s HO6 policy covers the personal contents and any “betterments and improvements” that may have been made by the owner, subject to whatever they had for real property coverage. Scenario 3 – Hailstorm to a Townhome Development Now it gets complicated. A 100-unit townhome development sustains a hailstorm and the roofs are totaled. The Association has a 4% wind/hail deductible on their policy and a total property value at $30,000,000. The loss for getting new roofs will cost $3,000,000. The Master Policy deductible for the hailstorm is $1,200,000 (4% of $30,000,000). That means the Association will receive a check for $1,800,000 (less the $1,200,000 deductible). The Association is going to assess every unit owner $12,000to make up the $1,200,000 deductible. The Association is made whole on the claim and new roofs are installed. In each of these scenarios, the Association is assessing the deductible back to the owners benefiting. Scenario 3 is significant, because the Association has to collect $12,000 from EVERY unit owner. It is a vulnerable place for the Association to be in. And it is a vulnerable place for each homeowner to be in if they don’t have Loss Assessment coverage to cover that assessment. Hopefully this is helpful in understanding how Association deductibles work – but more importantly, hopefully it illustrates just how imperative it is that EVERY owner has adequate Loss Assessment coverage as part of their H06 policy package.
Board Tips: Make Your Meetings Matter
There’s no denying that we live in a culture of meetings. The ease and accessibility of virtual meetings have furthered exasperated the reactionary notion of “let’s get together to talk it through.” As we approach the spring/summer season and the cadence of Board meetings increase, step back and consider two things – Frequency and Productivity. Meeting Frequency – how often are you meeting as an association Board? This will certainly vary. Your Governing Documents may dictate a number of meetings to be held within a calendar year. The size and complexity of your community may require more or less meeting regularity. And situational issues or projects may dictate the volume necessity for a “meeting of the minds.” Consider the notion, however, that the more often you meet, the less productive you may be. Fewer meetings force focus – and therefore motivation to have tangible outcomes and measurable initiatives. Consider evaluating your meeting productivity. If you find that decisions are often times delayed or tabled, if your meetings are more social than business, and certainly if you have a limited number of items on your docket, consider having fewer meetings. See how it goes. The results might surprise you! Productivity = Action List – to ensure that the meeting was, in fact, constructive with measurable outcomes, it is helpful to have a summary identifying assigned tasks. Make a list! As Managers, we refer to this as an “Action Item List.” These can even be incorporated into the Meeting Minutes if it reflects a New Business decision or resolution of the Board. Towards the end of a meeting, it is natural for people to just want to get home. Verbally summarizing and capturing, in writing, all action items is imperative. To make your meetings matter, reconsider frequency and have measurables/outcomes. You’ll find the two go hand-in-hand!
Sharper Scramble Golf Tournament – July 26th
Mark your calendar for the 8th Annual Sharper Scramble Golf Tournament, to be held Friday, July 26th at Boulder Pointe Golf Club in Elko. This FREE day of food, fun, fellowship and golf is Sharper’s way of showing our appreciation to you – our valued client – to our Sharper staff and to our trusted vendors. Registration begins at 10 a.m. Shotgun start to the scramble/best-ball format starts at 11a.m. Dinner and an awards banquette to follow the round. If you are interested in securing your spot for the Sharper Scramble, we recommend youdo so soon. Space is limited and tends to fill up fast! To register, email:clientcare@sharpermanagement.com
Board Training Opportunity – April 24th
The second in the quarterly series of Board Training opportunities will be held on Wednesday, April 24th, 6 p.m. at the Wells Fargo Plaza, 2nd Floor Training Room at 7900 Xerces Avenue in Bloomington, MN 55431. The 90-minute session will be led by director of business development and education, Josh Reams, CMCA, AMS, PCAM. This session will focus on defining the roles and responsibilities of the Board, and property management practices. Topics include: · Roles & Responsibilities of the Board· Officer Positions & Duties· Legal Obligations & Protections· Committees· Property Management Practices· Organizational Tools & Tips If you are interested in reserving your spot, please email:clientcare@sharpermanagement.com
Communication is Key: Forging Stronger Communities through Effective HOA Communication
The Foundation of Community Harmony Effective communication lies at the heart of a thriving Homeowners Association (HOA). In this blog post, we will delve into the critical role of clear and transparent communication within an HOA, exploring why it is the foundation for building stronger, more harmonious communities. The Significance of Clear Communication in HOAs Clear communication is the lifeblood of any community, and HOAs are no exception. Your community wants to feel heard, and they also want to feel valued, which does not happen without communication. If you are implementing changes, those changes need to be effectively communicated to establish trust along with cooperation. When people feel left in the dark when it comes to changes, negativity and anger can arise, which is never good. It is important to show through your communication efforts a sense of unity among residents to create a healthy community environment. The Impact on Community Engagement When communication is conducted effectively, community engagement improves along with transparency. Residents will feel more inclined to join community events, participate in discussions and create a sense of belonging. This can even open the door to new initiatives created when people feel like they are in a positive environment to want to make positive changes themselves. Tips for Successful Communication Strategies in HOAs 1. Regular Newsletters and Updates: Explore the power of regular newsletters or community updates distributed through various channels. Sharing consistent information keeps residents informed about upcoming events, policy changes, and other crucial updates. 2. Digital Platforms for Community Interaction: Communication through social media and online forums is another great communication strategy. These channels provide a space for residents to voice concerns, share ideas, and connect with their neighbors. 3. Town Hall Meetings and Open Forums: Town hall meetings and open forums create a platform for direct communication between the HOA board and residents. By creating regularly scheduled meetings can improve transparency and address concerns in real-time. 4. Utilizing Email and Text Notifications: Email and text notifications for urgent updates or time-sensitive information is a great way to keep your community informed. These channels ensure that residents receive critical information promptly. Handling Conflict Through Effective Communication Conflict is inevitable, but effective communication can be a powerful tool for resolution. By effectively communicating the rules set for your community, you leave less room for confusion or interpretation and more room for transparency and guidelines. There can come times when conflicts arise internally between other community members and by having clearly defined rules prevents these conflicts from escalating. Building a Culture of Transparency As mentioned earlier, transparency is crucial to maintaining a healthy community and should be considered a cultural cornerstone within an HOA. Setting a culture of transparency, openness and honesty builds trust among residents. In turn, by being as transparent with residents as possible promotes a positive community atmosphere. Elevating Community Living Through Clear Communication Having successful communication tactics lead to running a healthy HOA. By being transparent with your community through various forms of communication, you keep your residents happy and informed. It is not just a necessity but a catalyst for building vibrant communities. Take advantage of multiple communication strategies from newsletters to open forums. Continual communication efforts are required to maintain a healthy community. Ready to elevate your HOA management? Contact us today to learn more about Sharper Management’s HOA property management services. Sharper Management is a locally-owned, mid-sized property management company offering a full-suite of premiere services to the Minneapolis-St. Paul seven-county area.
Sharper Shines At CAI Vision Awards
Shaper Shines at CAI Vision Awards On Thursday, December 7th, the Community Association Institute-MN Chapter (CAI) hosted their annual Holiday Gala and Vision Awards ceremony. CAI, the international trade organization for community associations and regarded as the national experts in education programs, publications, association governance, advocacy and the accreditation body, holds this annual event to recognize and celebrate managers, business partners and homeowner leaders. Multiple awards were given out for both associations and for individual managers. Nominations are submitted by CAI members and a special voting committee reviews all nomination applications for specific criteria. The awards are a high honor and significant recognition by industry experts, for industry professionals. Sharper is honored to receive the following: Above & Beyond – Josh Fuhreck. Recognizes an individual for substantive achievement in performing tasks and services beyond the typical job description and scope of responsibilities. Josh was the Runner-Up amongst seven nominees. Excellence in Service – Tracy Shaver. Recognizes a manager which goes beyond the call of duty to service the Board and homeowners to make to community a better place. Tracy was the Runner-Up amongst seven nominees. Financial Impact – Michael Miller. Recognizes a manager who positively impacted a community(s) in a significant manner, such as budget management, capital improvement project management, insurance claim navigation, etc. Rookie of the Year – Caleb Robinson. Recognizes a manager with less than two-years of experience, excelling in all aspects of management functions. Caleb was the Runner-Up amongst seven nominees. Advanced Manager of the Year – Kim Schlauderhoff. Recognizes a manager with over seven-years of experience who excelled in all aspects of management functions. Kim was the winner amongst a handful of very qualified candidates. Management Company Support Staff – Anton Graf. Recognizes an individual that supports the operations of a management company on an administrative, financial, etc. level. Anton was the Runner-Up amongst nine other nominees. Association of the Year – This award recognizes an association Board of Directors who members clearly understand their roles and fiduciary responsibilities putting the association’s interests ahead of and above all personal agendas. (Large: 100+ Homes) – Ridgewood Condominium Association – Manager Tom Parsons. Ridgewood tied for Runner-Up in the category. (Small: Less than 100 Homes) – Henley Condominium Association – Manager Kimberly DuPont. The Henley of Edina took home the Award! Outstanding Community – Bearpath Homeowners Association (Manager Dave Garten). This award recognizes an association the values community building. Bearpath was the Runner-Up for the award. In this industry event, which this year had an attendance of over 550 people, Sharper has been fortunate to have a long-list of winners. In 2021 we took home five of eight nominations. 2022 we took home four of nine nominations. Now in 2023 we’re honored with two winners and six Runner-Ups awards. Congratulations to all of the nominees and winners! It was a beautiful night for the industry – and an exciting night for Sharper.
The Ultimate Guide to Successful HOA Management
Homeowners Associations (HOAs) play a crucial role in fostering vibrant and harmonious communities. Successful HOA management requires a delicate balance of effective communication, fair rule enforcement, and robust community engagement. In this blog, we’ll explore the key components of successful HOA management, offering valuable insights for your neighborhood along with making your community feel taken care of. Communication is Key in Successful HOA Management Effective communication is the cornerstone of successful HOA management. Implementing programs such newsletters, community forums & digital platform announcements can help foster an open dialogue in your HOA community. These programs can help improve relationships throughout your community while also keeping them informed & engaged. Rule Enforcement with Fairness and Transparency Fairness and transparency should be at the forefront when exploring rule enforcement. Having clearly defined rules allows for consistent enforcement throughout your community. Creating a balanced approach will help your community respect these guidelines along with a more positive environment. Community Engagement: Building Stronger Bonds Engaging your community helps foster a positive relationship with HOAs. Think about implementing programs such as social events and volunteer opportunities to create a stronger bond amongst your residents. Having a connected community leads to higher satisfaction and quality of life for everyone. Leveraging Technology for Efficient HOA Management Incorporating technology is essential for efficient HOA management. Uncover how digital tools can streamline communication, facilitate rule enforcement, and enhance community engagement. From dedicated HOA management software to online portals, there are multiple tech solutions that can make successful management a reality. Strategic HOA Management Planning for Lasting Success Successful HOA management involves proactive planning. Planning for things such as maintenance, community needs and financial planning can help plan for future success. By creating a well thought out strategy, you can foster an environment for a thriving neighborhood. Conclusion As you navigate the intricate landscape of HOA management, remember that success is a journey, not a destination. By prioritizing effective communication, fair rule enforcement, community engagement, and leveraging technology, you pave the way for a healthy and happy neighborhood. Implementing these strategies can lead to successful community living. — Ready to elevate your HOA management? Contact us today to learn more about Sharper Management’s HOA property management services. Sharper Management is a locally-owned, mid-sized property management company offering a full-suite of premiere services to the Minneapolis-St. Paul seven-county area. Topic post by following us on LinkedIn at https://www.linkedin.com/company/880327.
Sharper Management – Why Choose Sharper Video
The video for HOA Members Are you an HOA board member looking for a new property manager, or in an association that needs just a little bit better care? If so, perfect! I’m here to help. I’m Grant Peterson, the Director of Client Care here at Sharper Management, and I’m here to tell you why you should choose Sharper as your property manager. At Sharper, we’re large enough to handle any problem in a specialized fashion, but small enough to have great customer service. Our support structure is a large reason that we’re the best at what we do. When you call with an issue, you’ll talk directly to one of our client care specialists, not a robotic answering machine. Depending on the issue, our client care specialist will coordinate with different Sharper staff members to get it resolved. If the issue is related to something breaking down, then maintenance will be called to take care of it. Additionally, accounting will take care of any questions or issues involving billing. Similarly, resale is on hand to answer questions about selling your property within your HOA. Beyond that, we have a partnership with some of the highest quality vendors in the industry. Speaking of quality service, we are very proud of our best Industry member portals. They are set up as an easy, online, one -stop shop for all your needs. If you’d like more information, reach out to Sharper Management at 952 -224 -4777 today. Want more information about sharper? Visit the Why Choose Us Page here: https://sharpermanagement.com/why-choose-us/
Sharper Management For Your Minnesota HOA
Living in a homeowners’ association (HOA) community can be an enriching experience. These communities offer not just a place to live, but a sense of belonging and shared responsibility. To make this experience truly exceptional, efficient property management is essential. One company that excels in this area is Sharper Management. In this blog post, we’ll explore the services and qualities that set Sharper Management apart in the realm of HOA property management. Understanding Sharper Management Sharper Management is a well-established and highly regarded HOA property management company with a proven track record of excellence. They serve a diverse range of HOA communities across the Midwest, offering a comprehensive suite of services to address every aspect of property management. What sets Sharper Management apart is their commitment to enhancing the quality of life within HOA communities and their unwavering dedication to providing top-tier services. Comprehensive Property Management Services Financial Management: Sharper Management understands the importance of sound financial management. They offer expert financial services, including budgeting, accounting, and financial reporting, to help HOAs maintain a strong financial footing. Maintenance and Repairs: Ensuring that a community remains in top shape is vital. Sharper Management coordinates regular maintenance and repairs to preserve property values and improve the overall living experience. Community Engagement: Creating a sense of community is one of Sharper Management’s key focuses. They organize and manage community events and facilitate open lines of communication to foster a vibrant community spirit. Legal Compliance: HOA communities often face complex legal challenges. Sharper Management provides legal expertise to navigate these complexities, ensuring that communities remain in compliance with all relevant laws and regulations. Technology Integration: The company utilizes cutting-edge technology to streamline processes and provide residents with convenient online services, such as bill payment and maintenance requests. Transparent and Proactive Communication Sharper Management is renowned for its commitment to transparent and proactive communication. They keep residents and board members informed about the status of projects, financial matters, and other developments within the community. Open lines of communication ensure that residents are engaged and feel valued, which is crucial for a harmonious living environment. Tailored Services for Unique Communities Every HOA community is unique, and Sharper Management recognizes this. They provide customized solutions, understanding the specific needs and goals of each community they serve. This approach ensures that the management services provided align perfectly with the community’s vision and values. Award-Winning Service Sharper Management’s commitment to excellence has not gone unnoticed. They have received awards and accolades for their dedication to providing the best possible service in the industry. This recognition highlights their ability to consistently meet and exceed the expectations of both residents and board members. Conclusion In the world of HOA property management, Sharper Management stands out as a company dedicated to elevating the living experience within these communities. Their comprehensive services, commitment to community engagement, and transparent communication make them a trusted partner for HOA communities looking to thrive. If you’re a part of an HOA community in the Midwest, Sharper Management is a name worth considering when it comes to enhancing your property management experience Want more information about sharper? View our video library at https://sharpermanagement.com/resource-library-2/
Sharper Launches Educational Video Library
We are incredibly excited to launch our Video Resource Library – which contains nearly 100 professionally filmed educational videos with topics ranging from insurance, governing documents, financials, association meetings, and more. Although there are nearly 6 hours of total footage, each video is a short 2-8 minutes in length with a particular and focused topic. Feel free to browse around for topics that might intrigue you. You can enter the video library at https://sharpermanagement.com/resource-library-2/ You can also see the videos through our weekly Tuesday Training Topic post by following us on LinkedIn at https://www.linkedin.com/company/880327.