After a disaster, individual homeowners, HOA boards and managers can be overwhelmed by the many decisions they face.
Careful actions can avert increased financial losses and avoid worsening the impact of the sustained tragedy. In other words, don’t be hasty.
Immediate action
—Identify what cannot wait. What is not truly urgent can be handled in coming weeks and months.
—Use caution before entering damaged structures. They may be unsafe.
—Secure the property. Are temporary fencing or other security measures necessary?
—If fire remains a concern, locate and shut off gas lines to each home/building.
—Notify your property insurance company and obtain a claim number. Your claim will be assigned to a claims adjuster.
—Notify the utility companies of disruption of gas, water, or electricity.
—If you sustained vehicle damage, contact your automobile insurer.
Determine if temporary measures are needed to protect against further loss. Tarps or plywood sheeting may be needed to protect damaged roofs or walls.
—Take photographs before anything is moved, changed, demolished, or hauled away.
—Create an inventory of belongings, listing items destroyed.
—Retrieve electronic photographs of interior, documenting personal property in inventory.
—Displaced residents should provide temporary contact information to the board or manager.
—HOA’s issue should frequent updates to homeowners. Set a new interim meeting location or have virtual meetings.
Insurance claims; public adjusters
After receiving a claim, your insurance company will assign a claim number and an adjuster.
—You also may be contacted by other persons not working for your insurer, offering to help with your claim.
—“Public adjusters” must be licensed by the Department of Insurance, per Insurance Code 15027. Check license status at insurance.ca.gov/license-status/index.cfm .
—Public adjusters are not paid by the insurance company but take an agreed percentage of the money the insurer ultimately pays you. The percentage is not set by law and is subject to negotiation.
—You may not need a public adjuster. Most insurance claimants can process their claims without such assistance. Discuss this with your insurance broker or lawyer.
Banks
It can seem impossible to pay for a temporary home and simultaneously make mortgage loan payments on a destroyed residence, but don’t give up. Some lenders may allow a temporary moratorium on payments.
Contractors
You need a contractor. After disasters, contractors seem to be everywhere, soliciting repair contracts. Do your investigation — a firm handshake or friendly smile does not provide a contractor’s competence or honesty — caution is essential.
—Confirm the contractor’s license at http://www.CSLB.ca.gov.
—Confirm the contractor holds current insurance for liability, completed works, and workers compensation. Get a copy.
—Some contractors may try to win you over by promising you will not have to pay the amount of your insurance deductible. This is insurance fraud — don’t do it.
Will the contractor agree in advance to accept what your insurer will pay for repairs, plus your deductible? Rather than arguing with the insurer over the amount of the repair cost, focus instead on the extent of repair, and hire a contractor who will work within the insurer’s cost guidelines.
—Obtain bids from several contractors, preferably with solid track records.
—Contracts should be written. Don’t accept any unwritten promises.
—Contractors cannot legally require deposits over 10% of the contract price or $1,000. Beware anyone asking for more.
Truly, God bless you, and good luck.
Kelly G. Richardson CCAL is a Fellow of the College of Community Association Lawyers and Partner of Richardson Ober LLP, a California law firm known for community association advice. Send column questions to Kelly@roattorneys.com .