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JeffK17 (Texas)
Posts: 7
Posted:
I am on an HOA board for 300 Townhomes in Texas. Seven years ago we had to have our roofs replaced due to hail, which is pretty common in Texas. The The contract with then reads that they get "up to 10%" for anything insurance related.
Our community Manager called a company to review our roofs, without board knowledge or authorization. She that let us know the roofs were damaged from hail and need to be replaced. Again, it's Texas. Hail storms happen several times a year. She informed us that since she has now made us aware, that we have to act on the information. Thoughts?
SheliaH (Indiana)
Posts: 6,964
Posted:
What does the rest of the property management contract say regarding responses to possible or actual damage from weather? And what comes before the company getting "up to 10% for anything insurance related?" What does that even mean? Context matters and while you have a right to ask about anything you don't understand, it can be easy to misunderstand contracts and insurance policies - and you should read both of them. If you still have questions, ask the insurance company ir association attorney (yes, you should get authorization from the board before talking to the attorney because he or she will charge for the time needed to address this).

It may be several homeowners called the property manager to report damage to their units and if there were several, perhaps involving the same area, I can see the property manager calling a contractor to inspect it. That doesn't mean you had to pay for the inspection - perhaps she called the board president, for direction and he or she gave authorization - did you speak to anyone else about this? If not, why not? Get more information on what happened and then you can make any changes to the procedures if necessary

And you do know it may not matter that the roofs were replaced 7 years ago for hsil damage, don't you? Storms of all kinds have worsened in severity in recent years and unless you're a roofing expert and looked at the areas yourself, you don't know if the contractor saw something major or minor. Even the "minor" damage may not warrant a brand new roof. That's why you get a second and maybe a third opinion- doesn't the board already know to take that step? If not, think of what you do with your own home or car and someone said you needed an expensive repair- do you say okie-doke and pull out your checkbook or credit card?

A final thought- is the roof still under warranty? If so, and there is damage, this may not cost the association anything. Pull out the contract and warranty and read it with everything else.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
TimB4 (Tennessee)
Posts: 21,059
Posted:
After a hail storm, it would be prudent to inspect the roofs.
If damage is found, an estimate should be gotten.
If the estimate is less then the deductible, I wouldn't bother the insurance company.
If the estimate is more then the deductible, I would go through insurance.

With regards to what to do once the Board is aware of damage - failure to act could open the Association up to legal action based on negligence.

With regards to the PM:

Were they doing their job and being prudent by having an inspection? Perhaps
Were they trying to increase their profits by looking for damage? Perhaps.
Perhaps a bit of both.

This is something the board should consider when the contract comes up for renewal.
MarkM19 (Texas)
Posts: 1,459
Posted:
Jeff,
If I had to take a guess on who your PMC is It would be one of the biggest and it begins with a F. I believe I have read this in our contract with them when we had them. It talks about Project Management and that is why they get the Extra 10% for the Extra work involved. I am not saying it is right just saying someone probably the Developer signed the contract and now the owners will pay that fee.

First thing I would do is try and negotiate that Fee down. The next thing I would do is work to terminate the contract and replace them with a new PMC. Not sure what part of Texas you are in but there are many options out there and All are better than the largest company.
CathyA3 (Ohio)
Posts: 6,299
Posted:
I wouldn't be concerned about the evaluation - I view that as part of the manager's job. An evaluation isn't a contract or even a bid. It's just potentially useful information. And if your community is experiencing more repair calls lately, then it would make sense to look at all the roofs for potential damage rather than fixing each problem individually.

This is especially true if any of the roofs are approaching the end of their useful lives according to your last reserve study, since the recent increase in severe weather events is shortening the useful lives of many components. Many communities' reserve studies are out of date - because of weather and the uptick in inflation - so being proactive is smart.
MarkM19 (Texas)
Posts: 1,459
Posted:
Jeff,
The other thing you may want to do is get multiple inspections. As someone who lives in Texas and has had Hailstorms pass through. Lots of companies will tell you that Roofs need to be replaced because they get paid to replace. Not all Roofs need to be replaced every Storm. I would want video proof of the damage if you were unable to get on the Roof to inspect the roof yourself.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By JeffK17 on 09/16/2023 7:42 PM
I am on an HOA board for 300 Townhomes in Texas. Seven years ago we had to have our roofs replaced due to hail, which is pretty common in Texas. The The contract with then reads that they get "up to 10%" for anything insurance related.
Our community Manager called a company to review our roofs, without board knowledge or authorization. She that let us know the roofs were damaged from hail and need to be replaced. Again, it's Texas. Hail storms happen several times a year. She informed us that since she has now made us aware, that we have to act on the information. Thoughts?
I think what she is saying is that the HOA has to notify the insurer anytime it is possible a claim will be made. If the HOA does not notify the insurer as soon as there are signs of a possible claim, then the insurance policy might very well say that, down the road, such-and-such claim is denied.

In Texas, Florida and California, IMO HOAs cannot be too careful on this point. Insurers in these states are looking to not only double or even triple premiums, but also drop clients. Keep reading here and you will see discussion of this.

As for the manager arranging for a company to inspect the roofs, the manager should not have done this without board approval. I think she or her company should have a chat with the board about how arranging an inspection (if needed) should have been done.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By JeffK17 on 09/16/2023 7:42 PM
She informed us that since she has now made us aware, that we have to act on the information. Thoughts?

Ask where in state law or your governing documents where that is mandated.

Escaped former treasurer and director of a self managed association.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By DouglasK1 on 09/17/2023 5:17 PM
Posted By JeffK17 on 09/16/2023 7:42 PM
She informed us that since she has now made us aware, that we have to act on the information. Thoughts?

Ask where in state law or your governing documents where that is mandated.

The issue, for anyone, once aware of an issue - failure to act to correct it may result in a negligence law suit if something else happens.

Example:

MC identifies hail damage and provides said documentation to board.
Board chooses not to act upon the damage.
Another rain storm occurs and the roof leaks damaging your personal property.
If you find out that the board knew of damage and failed to act, you could bring legal action against the Association to cover your loss and, perhaps, pain/suffering.

See:

Texas Negligence Laws from find law

Negligence from an attorney web site

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