Maintenance and insurance obligations for associations and owners are typically set forth in the declaration for the community, which is also referred to as the “CC&R’s”, “Covenants”, the “Declaration of Covenants, Conditions, and Restrictions”, and the “Declaration”. Regardless of what you may call it, have you ever tried reading a declaration to determine who has to fix what? If so, you will probably agree that in most instances simply reading the maintenance and insurance provisions of a declaration fails to provide clear answers.
In order to determine the maintenance or insurance obligation of a particular component in the community, oftentimes one must cross-reference provisions in the declaration and read them in conjunction with one another. Additionally, statutes must be consulted and frequently, maps for the community must be reviewed before one can determine the maintenance or insurance obligation of a particular component in the community. This often results in calls and emails to legal counsel for assistance with determining such obligations.
Instead of expending funds to consult with legal counsel every time a maintenance or insurance question arises, some associations direct their attorneys to prepare maintenance and insurance charts to allow the board and manager the ability to more efficiently and cost effectively determine maintenance and insurance obligations for various components in the community.
What, then, is a maintenance and insurance chart? It is exactly what it sounds like: a chart (table) that details who (owner or association) is responsible for the maintenance and insurance of various components within the community. By way of example, the chart will set forth who is responsible for maintaining and insuring the drywalls, light fixtures, and patios or balconies. Additionally, the chart will advise as to who is responsible for maintaining and insuring components of both residential units and common elements.
Prior to preparing a maintenance and insurance chart, the association’s legal counsel will review several documents, including the association’s governing documents and plat maps. The attorney will also discuss whether problem areas exist in the community with the board and/or manager to determine if they require special attention. Finally, the attorney will either visit the community or look at the community using Google Maps (or similar platform) and become familiar with the community’s layout, recreational facilities, and any unique or out of the ordinary features. This will allow your attorney to tailor the chart specifically for your community.
Once complete, these charts assist boards and community managers by more easily answering questions concerning who has the maintenance and insurance obligation for various components. This, in turn, reduces phone calls and emails to the association’s legal counsel and thereby reduces legal fees incurred by the association.
Maintenance and insurance charts may also be distributed to owners for reference when they are trying to figure out who is responsible for various maintenance obligations or whether to file an insurance claim. As a result, owners will be able to obtain answers to their maintenance and insurance questions without having to call the board or community manager every time, which reduces the amount of time spent by the board and the community manager on such issues, in addition to avoiding conflicts concerning such obligations.
Should you have any additional questions about maintenance and insurance charts, please contact an Altitude attorney at (303) 432-9999 or at [email protected].