CAI-NJ Dec. 2018 (w)

MANAGEMENT TRENDS

BUT IT IS NOT IN MY UNIT!! By Tracey M. Allen, CMCA, AMS, Association Advisors of New Jersey

“B ut it is not in my unit. It is the association’s responsi- bility!” How many times have we heard this? What is clearly defined in our minds is not necessarily that clear cut for the homeowner. “My neighbor’s hot water heater leaked, not mine! Why am I responsible for the repairs?” This is another famous quote we as managers must deal with daily. No two people are the same and this holds true when trying to interpret your association’s governing documents. Each governing document was written by an individual who had the right intentions from the start but assumed the lay person would easily understand what exactly it is they are purchasing. My experience has been that most cases homeowners really don’t have a clear understanding of what they own and what their maintenance fees cover. Most people believe that owning a condominium relieves them of all maintenance required for their unit. Most owners incorrectly assume that the association will repair maintain and replace all their plumbing lines located behind walls, appliance, windows, and exterior. Doors. They are under the impression that they do not need to maintain their unit as would an individual who owns a single-family home. As managers, it is our responsibility to know and under- stand our governing documents, so we can guide the homeowners appropriately. This is our responsibility. Upon starting the management of the community, the manager should do a thorough review of the governing documents. If any inconsistencies are noted, the attorney for the associ- ation should be consulted. Each homeowner should have a clear understanding of what the association is responsible for and what is the homeowner’s responsibility. As stated above, when we encounter a situation where, for example, a hot water heat- er fails that and causes damage to another unit, homeown- ers in most cases are resistant to making a claim with their HO6 carrier. They believe that the offending homeowner’s policy should make the repairs.

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“Why am I responsible for the repairs?”

Another issue becomes the association’s deductible. Most associations either stipulate the deductible is the homeowner’s responsibility or have passed this cost on to the homeowner through a resolution. Whenever I am asked what the homeowner should insure, I advise their improvements to the unit, their personal belongings and if appropriate, the association’s deductible. Most HO6 carriers but not all, are now insuring for the deductible. In the event of a claim, most associations are responsible for returning the unit to “builder grade”. Therefore, the new kitchen with granite countertops, will not be replaced if their policy does not include “improvements”. Whenever there is evidence of water, the wall needs to be opened to determine what pipe has failed. When a plumbing line located behind the wall fails, homeowners need to understand the difference between a “common” line vs a line that “services their unit only”. The rule of thumb should be anything that services your unit only, even if located behind the wall, is the responsibility of the home- owner. Once again, you need to consult your documents to determine if the unit description includes the sheetrock or just to the studs. Success at maneuvering through insurance claims is to make sure you as the manager have a clear understanding

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