CAI-NJ Aug.2018 (w)

WRITTEN POLICIES... from page 20.

primary. These issues are important for all community associations but are especially important for two types of community associations: (a) town- home-style homeowners associations where the association is responsible to maintain roofs and siding but the owner is responsible to insure them, and (b) stacked or side by side con- dominiums where casualty losses can affect multiple units as well as the common elements. Since insurance deductibles in high claim buildings can be substantial, a written insur- ance policy can clarify who pays the association’s insurance deductible, the circumstances in which deductible payment is required by unit own- ers, and the proportion of payment between unit owners or between the association and unit owners. Some

associations have even mandated that owners maintain certain insur- ance coverage and provide proof of that insurance to the association each year. By clarifying information about the association’s insurance coverage, a written policy can also help owners determine the insurance coverage they should maintain. “...a collection policy can streamline procedures for board members and allow them to handle delinquent unit owners more quickly.”

to use common facilities, the collection policy can also formalize that proce- dure to ensure consistency in applica- tion. Most importantly, a collection policy can streamline procedures for board members and allow them to handle delinquent unit owners more quickly. 2. INSURANCE. Most association governing docu- ments do a fairly good job of describ- ing the association’s obligations with regard to required insurance cover- age. They may be less than clear about a unit owner’s insurance obli- gations or how a claim is handled when the association’s insurance is

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