Monday, June 29, 2015

The Top 10 Association Insurance Questions - Part 9

We are nearing the end of "The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance." Today, we discuss the ninth installment.

By: Brian J. Finnerty (CIC), Area Sr. Vice President, Arthur J. Gallagher Risk Management Services

Question 9:
What is Ordinance or Law coverage? 

Answer:
This is coverage provided under a property insurance policy that if elected can provide protection to the insured for increased repair cost that can be triggered by building codes and ordinances.  In many municipalities when substantial building damage occurs, those buildings must be rebuilt and rebuilt to current code.  These building code updates are often not covered by the standard property policy because they are looked at as putting the insured in a better position than they were before a claim which is not the intent of insurance.  The insured must rely on “Ordinance or Law” coverage to help pay to reconstruct back to current code.

The three components of this coverage are:
  • Coverage A: Loss of Value to the Undamaged Portion of the Building-Can cover the cost to rebuild the undamaged portion of the insured building.
  • Coverage B: Demolition coverage-covers the cost of demolition of the undamaged portions of the building in an effort to bring the building back to code.
  • Coverage C: Increased Cost of Construction-This provides for the increased cost to build back to code. 
So who needs this coverage?  The obvious answer is any association where the buildings are older would have more exposure to these types of claims.  However, as a general rule of thumb this is not an expensive line item on the property insurance policy and I suggest that all associations at least entertain this coverage. 

Make sure to check back next Monday for the final installment of this insurance series!

Wednesday, June 24, 2015

ACM Summer Office Hours

ACM's Summer Office Hours begin this week! From Friday, June 26, 2015 through Friday, September 4, 2015, our offices will be closing at 1:00 PM on Friday's. 

If you have an emergency during that time, please call (410) 997-7767 and follow the prompts for emergency services. You can also visit us online at www.acmhome.com, to view association and account information.

New Employee Spotlight


ACM is excited to welcome Melissa Ramsey, joining our Accounting Department as a Regional Accounting Analyst. Melissa comes to ACM with over 15 years experience in Accounting; 10 of those years were spent working with Jenark - the Accounting system utilized by ACM! Welcome, Melissa! 

Monday, June 22, 2015

The Top 10 Association Insurance Questions - Part 8

Today we discuss the eighth installment of "The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance." 

By: Brian J. Finnerty (CIC), Area Sr. Vice President, Arthur J. Gallagher Risk Management Services

Question 8:
Does my association need work comp?

Answer:
Work Comp is a statutory coverage and whether or not you have to carry work comp is typically outlined by your state. It provides protection to “Covered” employees for on the job injuries. In any association where there are paid W2 employees we always recommend this coverage. We also recommend as general risk management that any subcontract labor working directly for the association be mandated to have workers comp and general liability.  

Next week we discuss question nine! Be sure to check back on Monday.

Thursday, June 18, 2015

New Employee Spotlight - Community Management Department

ACM is excited to welcome two new additions to our Community Management Department!


Dawn Beeker

Dawn is the newest Community Association Manager assigned to the Howard County region of ACM's Community Management Department. Dawn comes to ACM with experience in apartment management, on-site management and community association management. She has earned her CMCA designation through CAI. Welcome, Dawn!



Esther Robinson

Esther is the newest Community Association Manager assigned to the Anne Arundel/Prince George's/Montgomery County region of ACM's Community Management Department. Esther comes to us with property management experience and an ARM designation from IREM. Welcome, Esther!

Wednesday, June 17, 2015

ACM Names New Chief Operating Officer



ACM is proud to announce the naming of our new Chief Operating Officer, Ms. Theresa Edwards! Ms. Edwards joined ACM as Vice President of Accounting in 2009 to support ACM’s growth, implementing new and innovative concepts to streamline the accounting systems and procedures.

 As a Certified Public Accountant (CPA) with over 15 years of experience, Edwards' background includes having served as an Assistant Controller with an international hotel chain, Senior Finance Officer with two multi-million dollar Washington DC non-profit organizations, and Senior Development Accountant – lending real estate development support to the CFO – with an Arlington based real estate developer/management company. She earned a full academic scholarship to the esteemed George Washington University, where she received her degree in Business Administration. She was honored as a National Scholar of the Horatio Alger Association for Distinguished Americans. In her spare time, she has served as a mentor for underprivileged youths. 

Excited for the challenge of her new position, Ms. Edwards states, “I am honored to follow a rich legacy of seasoned professionals, taking every opportunity to catapult ACM to a place of optimal success, by focusing on education, financial integrity and customer service.”


ACM President Mel Herzberger with Theresa Edwards, ACM's new Chief Operating Officer



Monday, June 15, 2015

New Employee Spotlight - Community Manager Trainees

From left to right - Marnita Davis, Sandra Vann and Christian Klarner


ACM is excited to welcome three new Community Manager Trainees! Our Regional Community Association Managers have developed a Community Association Management training program for our Trainees to participate in to learn the industry and progress to the role of Community Association Manager. We are thrilled to introduce:

Marnita Davis
Ms. Davis joins ACM with 28 years of banking experience, 19 of which were involed with Commercial and Real Estate banking. Welcome, Marnita!

Sandra Vann
Ms. Vann joins ACM with rental and leasing management experience along with a Bachelor's Degree from the University of Baltimore in Business. Welcome, Sandra!

Christian Klarner
Mr. Klarner joins ACM with editing, writing and disputer experience along with being an English major at Loyola University, Maryland. Welcome, Christian!

Welcome to ACM!

The Top 10 Association Insurance Questions - Part 7

Today we discuss the seventh installment of "The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance." 

By: Brian J. Finnerty (CIC), Area Sr. Vice President, Arthur J. Gallagher Risk Management Services

Question 7:
What are non-monetary claims?

Answer:
In the context of an association’s insurance policy these are claims that are typically made under a Directors and Officers Liability Policy (D&O).  These are the claims that make up a majority of the claims filed against homeowner association D&O policies.  They are not demanding monetary compensation but rather are looking for a change in a decision that the board has made. 

For, example a lot owner is upset at a recent architectural review committee decision to not allow certain types of fencing and the lot owner sues the board.  If your D&O policy does not have coverage for non-monetary claims the association is left footing the bill for the defense.

Not all D&O policies are the same.  Some limit coverage for non-monetary claims or don’t cover them at all.  Make sure your policy has this coverage.  

Stay tuned for next week for Question 8! 

Monday, June 8, 2015

The Top 10 Association Insurance Questions - Part 6

Today we discuss the sixth installment of "The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance." 

By: Brian J. Finnerty (CIC), Area Sr. Vice President, Arthur J. Gallagher Risk Management Services

Question 6:
What is an Umbrella Policy?  

Answer:
An umbrella policy is a policy that provides excess liability limits above and beyond what they have on their general liability policy, auto liability, directors and officer’s liability, employers’ liability, or any other liability policy the carrier has approved to have the umbrella extend over. 

I like to call this “sleep at night” coverage.  Everyone has a different opinion of what the right limit is to carry.  In some cases your governing documents will suggest what limits you must carry and in other cases the discretion of the board is the driver of what is the right limit to carry.  My suggestion is always to at least get a quote.  These policies are more affordable than you might think.  If you have a pool or other amenities that make your association more prone to a large claim then you may want to look at getting higher limits of liability.  When there is the potential of a large claim this is the policy that can protect you.


Be sure to check back next week for Question 7! 

Tuesday, June 2, 2015

New Employee Spotlight


ACM extends a warm welcome to Emily Lutz, joining our Accounting and Administrative Department as the Administrative Portfolio Specialist. Emily comes to us with administrative and receptionist experience and will be providing administrative support to our growing Accounting and Administrative portfolio of clients. Welcome, Emily!

Monday, June 1, 2015

The Top 10 Association Insurance Questions - Part 5

Today marks the half way point of "The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance." 

By: Brian J. Finnerty (CIC), Area Sr. Vice President, Arthur J. Gallagher Risk Management Services

Question 5:
What is Hired Non-Owned Auto and why do I need it?   

Answer:
“Our association does not have any autos so why do we need this coverage?” is the question I get asked at least once a week. The question is not a bad one since the associations usually don’t have any owned autos. The term “vicarious liability” is why you need and want this coverage.

For example, if you have a board member that has an offsite meeting with a vendor, contractor, etc. and on the way to the meeting has a major accident that was deemed to be their fault they will get asked the details of their trip. When they mention doing work for the association we often see the association get named in the lawsuit as well. Without some form of auto liability coverage the association could be left bare and have to defend and pay this claim on their own. Insurance companies recognize this is a limited exposure for associations and the premium represents that.   


Be sure to check in next week for the next question and answer!