Oasis Country Club Homeowners Association - Coachella Valley Community Associations Institute Magazine
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April 2012
Coachella Valley Community Associations Institute Magazine
Inside
Congratulations! You Are on
the Board! Now What?
Mold In The Desert?
HOA Loans. A Sound Option
That Makes Financial Sense
Co mm u n i t y S p ot l i g h t
Oasis Country Club
Homeowners Association
2012 Corporate
Sponsors
an
Platinum_________ HOA Banking Solutions company
AMS Paving Cash Management HOA Innovative Lockbox Online Access Multiple Payment
Asphalt MD’s Solutions Loans Processing Capabilities and Research Options
Epsten Grinnell & Howell
Fiore Racobs & Powers
Nelson Paving & Sealing
O’Connell Landscape Maintenance
MAINTAININg THe BeAuTY AND FuNCTION
Pacific Western Bank OF THe urBAN LANDSCApe
Peters & Freedman
Seacoast Commerce Bank • Irrigation audits performed by an IA
Securitas Security Services USA, Inc. Certified Landscape Irrigation Auditor
Sunshine Landscape • Tree Trimming with supervision by a
Partner with Strength. Partner with Pacific Western Bank. ISA Certified Arborist
Verizon Enhanced Communities
• Computerized Irrigation Management
Western Pacific Roofing ON STAFF
• Digital photo and Landscape enhancements
• Free 24hr emergency response
Gold______________ • Client education programs
ON STAFF
Ben’s Asphalt, Inc.
Over 75 Offices throughout California find us online: www.oclm.com or scan our qr code
Conserve LandCare with your smart phone to find more about us now.
Flood Response Member Paula Tapia, Assistant Vice President | (760) 777-6445 | ptapia@pwbonline.com Contact: Janalee Arthur, Sales/Customer Service
FDIC
LaBarre/Oksnee Insurance 78-080 Calle Estado, Suite 101, La Quinta, California 92253 phone: (800) 339-1106 fax: (949) 589-6083 Cell: (760) 285-3158
email: jarthur@oclm.com | 43549 wheel road, Indio, CA 92201
Powerful Pest Management
www.pacificwesternbank.com
Sign-A-Rama
Silver_____________
Animal Pest Management Services
CTI of the Desert
Diversified Waterscapes Inc. ALLEN & ASSOCIATES
Community Association Bookkeeping
3 WAYS
TO CUT YOUR
SPRING WATER BILL
Mutual of Omaha Bank/CondoCerts
PWLC II, Inc.
Time Warner Cable Check your irrigation
ATTENTION SELF-MANAGED ASSOCIATIONS!
Universal Protection Service Why haven’t you hired us to do your bookkeeping? system for inefficiency and
upgrade as needed
Bronze___________ We specialize in helping small HOA’s navigate
the maze of rules all HOA’s must follow.
Advanced Painting & Wood Repair
Participate in CVWD’s
Artistic Maintenance We provide ALL Community Associations bookkeeping, Large Landscape Smart
AWS Consultants, Inc. collections & financial services, including Controller Rebate Program
MC Painting & Construction Inspector of Election Services.
Prendiville Insurance Serving the Coachella Valley for more than 35 years
Rey Insurance Services 1111 E. Tahquitz Canyon Way, Ste. 103 Convert your grass to
Sky Security Services Palm Springs, CA 92262 Lush & Efficient desert
Union Bank www.allenhoa.com landscaping
Vista Paint
760-323-7475 For more information,
call Coachella Valley Water District
at (760) 398-2651
or visit www.cvwd.org
2 Quorum April, 2012 www.CoachellaValleyCAI.org 3
Contents
Community Spotlight
10 Oasis Country Club, Palm Desert
Happy 25th Anniversary! 10
By Tony Brunner
Features
Board of Directors
Coachella Valley Chapter 2012 21 Congratulations! You Are on the
Rob Winkle, President Board! Now What?
Western Pacific Roofing
Expectations and Duties of an Effective
Nena Rutherford-Milward, CMCA, AMS
President - Elect Board Member
Desert Resort Management By Sue Anderson
Art Coulter, Past President
Palm Valley Homeowners Association, Inc. 22 Mold In The Desert?
Christina Baine DeJardin, Esq. Don’t Be Deceived, There Is Mold All Around Us
Peters & Freedman, LLP
By Greg & Barbara Masters
Cyndi Koester, PCAM
Mutual of Omaha Bank/CondoCerts
Gloria Kirkwood, CCAM
26 Commercial Insurance for
Palm Valley Homeowners Association, Inc. Associations
Grace Paluck
The Management Trust, Monarch Group Division
Insurance Market Update for 2011 and 21 22
a Look Ahead to 2012
Kristin Berryhill-Hood, CCAM
Merit Property Management Inc.
By Sarah Davis
Michael Walker, CMCA, AMS, PCaM
PGA West Residential Association
28 HOA Loans. A Sound Option That
Mike Mastropietro Makes Financial Sense
Orange Coast Building Services By Cyndi Koester, CMCA, AMS, PCAM
Patricia Smith, PCAM
Your HOA can be
Veneto Homeowners Association 35 Paint is Paint. Or is it?
our next Cover April 201
2
CAI Coachella Valley Office
41-905 Boardwalk Suite A-2
What Makes a Quality Exterior Paint
By Gina Roldan
26 28
Palm Desert, CA 92211
Tel: (760) 341-0559 36 Fronds & Flowers
Fax: (760) 431-8443
e Tips to Make Palm Tree Trimming and
unity Assoc
iations Ins
titu te Magazin
Wendy Van Messel, Chapter Executive Director
Coachella
Va lley Comm
E-mail: wvanmessel@cai-cv.org Summer Flower Planting Easy
Website: www.cai-cv.org By Jay Powell
Chapter News
43 Have You Heard? 35 36
ARTICLE SUBMISSIONS OR By Wendy Van Messel
ADVERTISING INFORMATION
CAI-CV Chapter Executive Director, Wendy Van Messel
44 CAI-CV Chapter
No Cost E-mail: wvanmessel@cai-cv.org
New & Renewing Members
to you inside
tions! Yo
Congratula Now What?
!
u Are on
Editors: Dionne Petitpas and Paula Tapia
E-mail: editor@cai-cv.org
45 Advertisers Index
Every cover the Board
Mold In The Desert?
ns. A So
und Optio
n
The materials contained in this publication are designed to
has a story. HOA Loa
That Makes
Financial
Sense
provide our members with accurate, timely and authoritative
Tell us yours!
Co M M u
nIt y Sp
ot l I g h
t
Chapter events
Oa sis Coun try Club
ers Associa
Must
tion be CAI-CV member information with regard to the subject covered. However, the
CAI Coachella Valley Chapter is not engaging in the rendering of 24 38
Homeown
in good standing
legal, accounting or other professional types of services. The CV 24 February Monthly Program
Chapter has not verified and/or endorsed the contents of these What’s in the HOA Insurance Market for 2012?
(760) 341-0559
articles or advertising, nor do we have the facilities or the person-
Contact nel to do so. Readers should not act on the information contained
Wendy herein without seeking more specific professional advice from
48 Schedule of Events
at the CAI-CV Office wvanmessel@cai-cv.org legal, accounting or other experts as required.
38 CAI Casino Night
It’s the Year of the Dragon
4 Quorum April, 2012 www.CoachellaValleyCAI.org 5
Contents
Departments
8 President’s Message 14 16
9 From the Editors
Editorial Board 14 CLAC News
Editors Sacramento Deadline Passes New Legislation
Dionne Petitpas Affecting Community Associations
Three Phase Electric By Skip Daum
Paula Tapia
Pacific Western Bank 16 CAI National
The “REO” Speed Wagon 18 19
Committee Members New Policy Annoucements From Freddie Mac
GINA ROLDAN May Impact Community Associations
Vista Paint
By Staff Writer, CAI
JAY POWELL
PWLC II, Inc.
LAURIE S. POOLE, ESQ.
18 About CAI
Peters & Freedman, LLP Membership Has Its Benefits
LESLEE WILLIAMS The Many Reasons To Be A CAI Member
The Management Trust, Monarch Group Division
LESLEY FINCH, PCAM
By Steven Shuey, PCAM, CCAM
32
Lindsay Management Services
19 Time Honored Member
SHELLY RUEGSEGGER, CMCA
Personalized Property Management Wayne Carlsen
STEPHANIE OTERO By Pat Smith, CCAM, PCAM and 33
Office of Stephanie Otero, CPA Shelly Ruegsegger, CMCA
STEVEN SHUEY, PCAM, CCAM
Personalized Property Management 32 Homeowners Association Law
STEVEN J. TINNELLY, ESQ.
Tinnelly Law Group
The Festivals Are Coming!
SUE ANDERSON
The Festivals Are Coming! 40
Universal Protection Service Preparing Your HOA For Coachella and Stagecoach
TIM BLOOM By Jeffrey A. French, Esq. and Holly L. Amaya, Esq.
Brite & Clean, Inc.
Tony Brunner 33 Coffee Talk
Country Club Remodeler
40 Water Wise
Creative Director & Graphic Designer
Safe Drinking Water is Everyone’s Priority
Rodney Bissell By Steve Bigley
Bissell Design Studios
42
42 Technology Today
The mission of CAI is to provide the
Cyber Liability What Does It Really Cover?
leadership for successful development and
By Carol A. Fulton, CIRMS
operation of community associations through
information, research and education. 43 Welcome Aboard
CORRECTION: In the January issue, the name of Richard Revco Solar Engineering Inc. and
Welsh of Leak Point was incorrectly spelled in the WELCOME Patricia Moeller, CCAM
ABOARD section. We apologize for this misspelling. By Shelly Ruegsegger, CMCA 43 43
Homeowners Associations Subscriber services
• • • Audits • • • The Coachella Valley Quorum Newsmagazine
• • • Reviews • • •
• • • Tax Returns • • • is a publication expressly prepared for our Association
• • • Compilations • • • leaders, managers and other related professionals of the
• • • Special Projects • • • Community Associations Institute. Authors are encouraged
(760)568-5544 to submit articles for publishing consideration. All articles
accepted for publication in the Quorum are subject to
43-585 Monterey Ave., Suite 4, Palm Desert, CA 92260
editing and rewriting by the Publications Committee.
6 Quorum April, 2012 www.CoachellaValleyCAI.org 7
President’s Message from the Editors
President’s Message From the Editors
Rob Winkle, Western Pacific Roofing Corporation Dionne Petitpas, Three Phase Electric
CAI-CV Chapter Board President Paula Tapia, Pacific Western Bank
Here we are in April already, as this year flies by. This Managers and offers a practical overview of association Well, Spring is almost here and we’ve all “sprung our economy you may think these choices are lim-
is a busy month with Good Friday on April 6th and management and is a must for achieving a CMCA des- forward” as well, so we feel right at home with an issue ited. Cyndi Koester’s article on “HOA Loans” answers
Easter is on Sunday April 8th. Spring time is a wonder- ignation. The CAI-CV Board of Directors realizes that on, what else – Spring Cleaning! the frequently asked questions when it comes to HOA
ful time of renewal as the spring flowers are blooming the expense of continuing education can be a deterrent We have dedicated this issue of QUORUM to a lending.
in all their glory. The desert is especially beautiful this to some and therefore offers a very generous scholar- variety of topics that you’ll find helpful in getting some Legislation is also getting a fresh start with new
time of year; make sure to stop and take some time to ship program to those managers that want to grow their spring cleaning done in your community. By cleaning, legislation being introduced. Skip Daum’s very infor-
enjoy it. career. For more information about our scholarship we don’t mean dusting off that hard to reach shelf, or mative article “Sacramento Deadline Passes” details
The Business and Education Expo was a big hit on program, contact the chapter office. tackling that overstuffed closet. We mean… painting, three of the thirty new Bills affecting community
March 20th. It was held at Heritage Palms Country Club At last year’s Strategic Planning session it was deter- mold, landscape, new legislation, new boards, and even associations.
and everyone enjoyed our guest speaker Dr. Esmael mined that CAI-CV needed to work more on promoting improvements facilitated by a HOA loan. These articles Celebrating its 25th anniversary this month is our
Adibi from Chapman University. Following Dr. Adibi’s the good our chapter has to offer. With that in mind, I are all relevant to getting a fresh spring start. featured community spotlight, Oasis Country Club
informative talk, everyone enjoyed mingling with our would like to thank our newest committee, the Mar- Gina Roldan’s article “Paint is Paint. Or is it?” dem- in Palm Desert. This beautiful community is looking
great Business Partners in the Expo Hall. Thank you keting Committee, for their hard work in promoting onstrates that there is more to “What Makes a Quality forward to a wonderful 25 more years and is well on
to Expo Chair, Cyndi Koester with Mutual of Omaha CAI-CV. Chair Lori Albert with Albert Management Exterior Paint” then we might have previously thought. their way with the improvements made and continued
Bank/CondoCerts and her committee of Louise Inc. and Co-Chair Nathalie Ross along with the help Mold is not something we like to hear about but it is commitment to excellence.
Stettler with Epsten Grinnell & Howell and Nathalie of the committee, have jumped out of the gate and a reality. Greg Master’s article “Mold in the Desert” We hope the full array of articles in this month’s
Ross with Adams Kessler, PLC for their time and effort are developing a good strategy for our chapter. The outlines ways to find the source of the mold and how to issue of QUORUM will help make “Spring Cleaning” an
on behalf of the chapter. Membership Committee, lead by Jerod Pannell with fix it. Beautiful landscaping is ever present in our valley. easy task for your association.
CAI-CV values education for all our members and Conserve LandCare and Co-Chair Louise Stettler are For tips on making palm tree trimmings and summer
this month our Homeowners Essentials class will be also working closely with the Marketing Committee on flower planting easy, check out Jay Powell’s article on Best,
held on Thursday, April 12th at Palm Valley Country increasing, as well as maintaining, our membership. If “Fronds & Flowers.”
Club. This class is also known as “Board Boot Camp” you know someone who could benefit from our Asso- Welcoming new officers to a board of directors is a
as it is a time for newer board members to get a bet- ciation please put them in contact with the CAI office. constant process that Associations go through. If you’ve
ter understanding of the new role they have just taken Thank you to all our volunteers for their commit- just been selected to serve on the board of directors of
on and for more seasoned board members to have the ment to the chapter, we couldn’t do it without you! your Association, take a look at Sue Anderson’s article,
opportunity to be reminded of what can become rou- Hope to see you all at Indian Canyons Golf Resort for “Congratulations! You Are on the Board! Now What?” to
tine. Please make sure you encourage as many Board our Annual Golf Tourney on Friday, April 27th, always a get an overview of expectations and duties of an effec-
Members to attend this program as it is a very benefi- great time. tive board member. One of the issues you may face as
cial class. a board member is helping your Association make a
While on the subject of education, on May 17th – decision on funding large projects. In the downturn of
19th we will be holding an M100 Class locally here in
the Valley. The M100 is designed for newer Association
8 Quorum April, 2012 www.CoachellaValleyCAI.org 9
Community Spotlight Community Spotlight
Oasis Country Club, Palm Desert
fashion and food. Raffle money from this event is donated
to the Arnold Palmer Prostate Cancer Center. The event
features the Art Bowman Classic, the proceeds from which
Happy 25th Anniversary! also go to the Arnold Palmer Prostate Cancer Center. Art
Bowman was a long time Oasis homeowner and golfer.
The Annual Oasis Pro Am is in April. This is when golf
By Tony Brunner, Country Club Remodeler professionals from around the Desert and their guests join
Oasis owners for a fun filled day of golf and prizes. Then
there is the Memorial Day Tournament with the Marines,
when single Marines are invited and picked up from the 29
Palms Marine Base for a day of golf and lunch.
Although Oasis is its own world, it is within walking,
driving or golf cart distance of two major grocery stores,
three large pharmacies, several local restaurants, strip
malls, beauty salons, dry cleaners, copy centers, and doc-
tors. It is only 1-1/2 miles from the I-10 freeway.
Here are some of the Oasis homeowners in their own
words:
Jim Schmitz (25 year owner): “The thing that makes it is
the people. The togetherness of the people, Board and staff
working toward making The Oasis a better place to live.”
Virginia Rapp (15 year owner): “We live in Oklahoma in
the summer and after visiting a relative at Oasis in 1996, we
toured some homes with no intention of buying. However,
at the end of the day we had done just that. We have never
had a reason to regret that quick decision and have since
O
purchased a larger home just down the street from our
asis Country Club Homeowners Association is There are slightly more full-time than part-time resi- first home. After living at The Oasis for 15 years, we still
located on 153 acres of fee land off Hovley Lane East dents. There is also a high percentage of renters that come consider this property to be one of the best maintained,
between El Dorado and Oasis Club Drive in Palm Desert, back year after year due to the affordable golf and dining most economical and friendliest locations in the Coachella
California. amenities at Oasis. In fact, they become more like mem- Valley.”
Construction started in 1985 and involved a succes- bers than guests. Most of the new Oasis owners come from Dennis Benoit (recently bought in 2011): “As we drove
sion of 3 developers, Weyerhauser, California Community Canada, Washington and Oregon. through the front gates of Oasis Country Club, it was like
Builders, and Canaan Construction. Final build out was in What homeowners like most about Oasis is its well driving into Paradise. The grounds and the golf course
1999. The Oasis Community is currently celebrating its 25th maintained, satisfying 18 hole executive course; its friendly were beautifully manicured and in pristine condition and
Anniversary. people and staff; the well landscaped grounds; competi- the view of the mountains were second to none. The whole
The community is comprised of 662 condo and PUD tively priced homes, and the very active men’s and women’s complex was so clean and well kept. We were so impressed
units laid out amidst a beautiful 18 hole executive golf golf clubs and smaller golf groups. The Men’s and Ladies with the friendly residents and the friendly, smiling staff
course. Facilities include a 22,369 sq. ft. clubhouse, three Golf Clubs each have two days a week for play. People always ready and willing to help us. We felt ‘at home’ imme-
tennis courts, four pickleball courts, a Ted Robinson who play the Oasis golf course say that it is the best Execu- diately and we were sure that this would be our ‘home away
designed 18 hole putting course, putting green, driving tive Course in the Valley. It is also one of the few courses from home’.”
range, practice bunker, 3 lighted tennis courts and 18 pools that allows walking. The Club does not shut down for the The five member Oasis Board of Directors benefits from
and spas. Oasis is among the few clubs in the Coachella summer and the year-round residents appreciate the fact the efforts of a number of extremely active and devoted
Valley where the homeowners also own the clubhouse and that there continue to be activities for them to enjoy. Oasis committees: Architectural, Events, Finance, Golf, House,
golf course. owners are very active in Club activities and enjoy monthly Landscape, Marketing, Security and Emergency Prepared-
The homes at Oasis range from single bedroom condo parties, brunches and golf events throughout the year. ness Oversight.
units of 775 sq. ft to 3 bedroom single family homes of 1,805 Regular annual events are activity highlights at Oasis. Says Janice Tippin, Board President “While celebrating
sq. ft in a variety of more than 20 floor plans. As of this writ- Each new season opens with a Dinner/Dance to welcome our 25th anniversary, our Board is mindful of the fact that
ing there are 29 active listings on the MLS ranging from the snowbirds back into town. It is followed by a cocktail we have to be looking forward to the next 25 years. In order
$149,000 to $389,900. In 2011 Oasis properties sold in the party the next day. The Annual Oasis Fashion Show is in to be successful we must be willing to change and continue
range $155,000 to $400,000. March, when owners and their guests enjoy a luncheon of on the path of constant improvement. We are committed to
10 Quorum April, 2012 www.CoachellaValleyCAI.org 11
Community Spotlight
®
encouraging excellence in our administration, our staff and Freedman, Brabo & Carlsen, Asphalt MD’s, and Time War-
ourselves in order to enhance our members’ and guests’ ner Cable. Business Partners also include the Oasis onsite
experience at Oasis Country Club.”
The Board has recently completed a three year reno-
real estate office which is operated by Desert Homes with
Tarbell Realtors. Of the six agents in the office, five are also
A knowledge leader in security
vation of the Clubhouse, which included remodeling the Oasis homeowners.
Securitas USA continues to be a dedicated security partner
men’s and ladies’ locker rooms, lending library, updating Oasis directly employs its administrative staff of five in the Valley by providing security professionals who meet
the pro shop, expanding The Grille Room, and upgrading experienced personnel. Association Manager is Eve the specialized needs of Gated Communities. Participation
the dining room and lounge facilities. Weber. Says Eve, “Our homeowners are a delight. They are in associations such as CAI, RCSA, CACM, ASIS, and Crime
The pool areas and larger common areas are being Xeri- friendly, willing to help out and a pleasure to work with. Stoppers, Securitas USA remains active, knowledgeable and
scaped and a re-landscaping project is under way to help This community is a better place because of the members, ready to service your communities. With national resources
with aging shrubs. The Association has assisted some 40 staff and business partners! We are a friendly, unpreten- and a strong local management team in Palm Desert, we are
standing by to enhance your security operations. We invite you
owners with Xeriscaping in front of their units. tious community with people from all around the world
to take advantage of an Operational Analysis, at no cost to you.
We recently launched a new and improved website who enjoy all the amenities The Oasis has to offer. From
(www.theoasiscountryclub.com). Homeowners can make people who love to golf to people who love to putt, from For more information, please contact:
tee times and dining reservations online, along with check- people who play tennis to people that play pickleball. Douglas Robinson | 760.779.0728
ing of their statements. This illustrates one of the benefits Throw in bingo, bridge, mah jongg, bunko, karaoke and a
of the homeowners also owning the golf course and club- multitude of dining activities and you have what it means
house facilities. Centralization of management avoids to be home at The Oasis Country Club - - a community for
confusion. Whether a golf course sprinkler or a common all.”
area sprinkler is hitting one’s unit, the phone call goes to
the same place. Tony Brunner is with Country Club Remodeler, a
Oasis Business Partners include Sunshine Landscape, high quality, affordable remodeling contractor Securitas Security Services USA, Inc. is a knowledge leader in security. As the nation’s leading
security provider, Securitas USA and its affiliates offer security solutions, including uniformed
Boyd & Associates, Valley Pools, Foster & Sons Pest Con- serving Coachella Valley homeowners. You can security officers, mobile patrol and consulting & investigations. Everywhere from small businesses
trol, Diversified Roofing Services, Inc., First Bank, Peters & reach him at (760) 772-4300 or at to large corporations, our 100,000 employees are making a difference. | www.securitasinc.com
tony@countryclubremoder.com.
12 Quorum April, 2012 www.CoachellaValleyCAI.org 13
CLAC News
GURALNICK & GILLILAND, LLP
ATTORNEYS AT LAW
Sacramento Deadline Passes Member of CAI and CACM
New Legislation Affecting Community Associations Legal Services for
Legal Services
Community for
Associations
By Skip Daum, CAI’s Legislative Representative in California
Community Associations
__________________________________________________________________________________________________________________________
F
General Counsel
ebruary 24th was the last day for new legislation to be AB 2273 (Wieckowski) – Timely Recordation after Trustee Assessment Lien and Foreclosure
introduced into their respective houses in Sacramento. Sales. Problems arise after a foreclosed property is sold ● No Cost Collections
On last count 2,791 Bills have been introduced and are being at auction. Mainly the problems come from banks that • General Counsel
● Fees Paid by Delinquent Homeowner
dissected by our dedicated lobbyists, Skip Daum and Ron are not willing to take responsibility for the assessments ● Detailed Monthly Status Reports
Kingston. Out of the approximately thirty (30) Bills that and maintenance of the property, and therefore delay the • Assessment Lien and Foreclosure
● Title Reports at No Charge to Association
seem to affect community associations there are a few that recordation of the property into their name. Technically, • No Cost Collections
Construction Defect/Reconstruction
really stand out. they OWN the property (they bought it at auction) but they ● •Mold
Fees Paid by Delinquent Homeowner
Claims/Litigation
don’t record that transfer officially, so no one knows. The ● •Real
Detailed
EstateMonthly Status Reports
Dispute/Litigation
AB 561 (Corbett) is BACK. This is the second year this • Title Reports at No Charge to Association
HOA continues to bill the previous homeowner (who was
Bill has been floating around Sacramento, and it is worri- Phone: (760) 340-1515 FAX: (760) 568-3053
just foreclosed upon), asking THEM to continue to main-
some. The premise behind the Bill is to get the money that • Construction Defect/Reconstruction
tain the property and fining them for any failure to do so.
is collected in delinquent assessments to the HOA as fast as
Why should the person who just lost their home be required
• Mold Claims/Litigation
possible. That sounds great! The problem comes when an
to pay assessments and maintain • Real Estate Dispute/Litigation
association is not willing or able to
the property? The simple answer is:
spend any more money collecting Phone: (760) 340-1515 FAX: (760) 568-3053
they should not be. The language
on a particularly difficult account.
of this Bill (in effect) is that the Bill
Many Boards feel that turning the
“would provide that an owner of a
account over to a debt collector
separate interest shall, within 30
who knows the best ways to collect
days of transferring title, provide
on delinquent accounts is the most
to the association’s board secre-
productive way to go, but AB 561 will
tary, agent, manager, or designated
severely curtail that practice. These
representative, a copy of the owner’s
“professional” debt collectors are
deed or other document transferring
providing a service, and as such,
title to the purchaser of the separate
they expect to be paid for it. HOAs
interest and a written notice of the
want to “cut their losses” and are
purchaser’s mailing address.” CAI’s
willing to take a percentage of what
California Legislative Action Com-
is brought in on accounts that they
mittee is working alongside Assem-
have practically given up hope on.
bly member Bob Wieckowski and
If AB 561 passes, the only way the
the County Bar Associations (who
debt collector would be paid would
initiated this measure) in promoting
be if they collected MORE than the
this Bill and possibly amending the
assessments due the HOA. Practi-
language to provide additional incentives to comply with
cally speaking, that doesn’t happen, which means the pro-
the law once enacted. Requiring timely recordation is the
fessional collectors would have to work for free, or the HOA
first step in holding banks responsible for obligations they
would have to pay them out of the assessments collected
have as part of the foreclosure process.
by people who ARE paying their assessments. The point of
using the professional collectors was to stop throwing good SB 1244 (Harman) – Notice of Default Notification. The
money after bad while still acknowledging the Board’s fidu- California Civil Code has many requirements regarding
ciary duty to collect assessments. While this Bill may look how someone defaulting on their loan needs to be noti-
good on the surface, it severely inhibits a board’s ability to fied of the filing of a Notice of Default (the first step in the
do their due diligence. We have attempted to bottle this bill foreclosure process). Senator Harman has introduced a
up in the Assembly and have succeeded thus far. Bill that makes the notification of a non-paying unit
14 Quorum April, 2012 www.CoachellaValleyCAI.org 15
CLAC News CAI National
cai MORTGAGEMATTERS program. Under this program investors have been invited
to bid on pools of properties owned by Fannie Mae, Fred-
lenders who foreclose that they are responsible for payment
of community association assessments. CAI survey data
die Mac and FHA. One condition of this program is that the indicates that more than three out of four REO properties
The “REO”
properties be rented for at least a year after purchase. While do not pay required assessments. Thus the federal actions
this program will help clear out the backlog of REO proper- here will help force lenders to live up to their financial
ties clogging the market, it also creates potential problems commitments.
Speed Wagon
for community associations. First, as condominium asso- As part of our ongoing Mortgage Matters program, CAI
ciations know, FHA limits the number of rental units to no is working to protect homeowners in community associa-
more than 49 percent of an association. It also requires that tions and to ensure access to fair and affordable mortgage
no more than ten percent of any condominium association products for all current and potential community associa-
New Policy Announcements be owned by a single entity. Thus, a bulk sale may result tion residents. You can follow our work and share your
in an association being disqualified from some federal thoughts at www.caimortgagematters.org and on Twitter
From Freddie Mac May Impact mortgage programs. Beyond that concern, there is the issue at @CAIGPA. CAI will continue to monitor and participate
owner more reasonable. The text of the Bill states,
Community Associations of the bulk seller obtaining a sizeable ownership share or
even a majority of units within the community. This will
in shaping changing federal housing policies to ensure the
perspective of community associations is heard.
“The board shall provide notice by personal service in create a host of governance issues and impact the rights on
By Staff Writer, Community Associations Institute
accordance with the manner of service of summons in existing owners. CAI articles are researched and written by a team of
Article 3 (commencing with Section 415.10) of Chapter 4 of There is good news as well. The Office of the Comptrol- professionals with the CAI National Headquarters. CAI
F
Title 5 of Part 2 of the Code of Civil Procedure to an owner ler of the Currency (OCC) issued a policy bulletin outlining provides information and education to community
or most of us of a certain age, the question “How associations and the professionals who support them. For
of a separate interest who occupies the separate interest the responsibilities of lenders in foreclosure. That guid-
much REO do you have in your portfolio?” was usually additional information, visit them at www.caionline.org.
or to the owner’s legal representative, if the board votes to ance (embodied in OCC Bulletin 2011-49) provided notice to
answered in terms of the number of eight-track tapes. Of
foreclose upon the separate interest. If after reasonable
course with the advent of the housing crisis, this term, which
diligence the notice is not able to be personally served
references Real Estate Owned or bank-owned property, has
on an owner of the separate interest who occupies the
become the benchmark of distress for communities across the
separate interest, the association may post a copy on the
country. Now important policy announcements by the federal
owner’s separate interest in a manner most likely to give
government will turn loose a veritable “REO” speed wagon on
actual notice to the party to be served and mail a copy
community associations across the country and we need to be
of the notice by certified mail and first-class mail to the
prepared for the potential impact.
owner at the address of the owner’s separate interest.
Bad metaphors aside, mortgage giant Freddie Mac
[The italics are the new part.] At first blush, it looks like it
issued a policy bulletin (2012-2), which allows unem-
simplifies the process for HOAs a bit. And, as usual, the
ployed borrowers to seek forbearance on their mortgages
California Legislative Action Committee will keep an eye
for a period of six to twelve months. The Federal Housing
on its progress and let you know any changes made, and
Administration (FHA) offers a similar program. Freddie
our official position, once taken.
Mac has also extended authority to lenders it works with to
And that is only three of the thirty. We offer up to six months of mortgage forbearance as part of
have a lot of work to do in the coming this program. CAI expects Fannie Mae to follow Freddie’s
months. To keep abreast of the situation, lead on this issue.
check out our blog at caiclac.wordpress.com and sign up Community associations should remind residents that
to be notified automatically when new posts occur. That loan forbearance offered by FHA, Fannie Mae, Freddie Mac
will be the best place to find out what is going on in the or on behalf of any lender does not apply to association
world of HOA legislation in California. assessments. CAI also encourages all associations to work Of course with the advent of the housing
Be sure to join us for our Legislative Day in the Capi- with troubled borrowers to avoid any instance of assess- crisis, this term, which references Real Estate
tol, set for April 15-16. For more information, please visit ment delinquencies and to preserve the ability of owners to Owned or bank-owned property, has become
www.caicalif.org and look under “Upcoming Events.” remain in their units. Boards may want to consider adding
the benchmark of distress for communities
this information to delinquency notices to ensure the board
across the country.
Skip Daum is our veteran Legislative Advocate is aware of any residents who are in a forbearance program.
for CAI’s California Legislative Action Foreclosing on such owners may invite federal regulation of
Committee and may be reached at association enforcement powers.
caiclac@aol.com. More information on the Other plans for REO properties include the Fed-
Legislative Day in the Capitol can be found at eral Housing and Finance Agency’s bulk sales to rental
www.caicalif.org.
16 Quorum April, 2012 www.CoachellaValleyCAI.org 17
About CAI
Time Honored Member WAYNE CARLSEN
Membership Has Its Benefits By Pat Smith, CCAM, PCAM, Veneto HOA and
The Many Reasons To Be A CAI Member Shelly Ruegsegger, CMCA, Personalized Property Management
By Steven Shuey, PCAM, CCAM, Personalized Property Management
Wayne Carlsen has lived interest in modern technology so just about everything
in the Coachella Valley for he reads is digital. His music interests range from
about 26 years. He was born Classical to Rock, and on his IPAD is the book, The Art
and raised in a small farming of the Steal. His favorite saying is “nothing is free.”
community in Southern Wayne has been a member of CAI for approximately
Minnesota. He has been 20 years and served on the Board of Directors as the
married to his wife Jan for 18 Treasurer for several years and was also Chair of the
years and has a 31 year old Finance Committee.
son who lives in Oregon and Wayne has been in business for 37 years. Over
has just returned from a tour of duty in Iraq. the years his business has expanded and he now
Wayne has a B.S. in Accounting from Mankato State provides services to approximately fifty primarily
College in Minnesota. Wayne relates that “his first large associations. His firm, Brabo & Carlsen, LLP
employer in Minnesota taught me that the way to get CPA’s provide accounting, audit and tax services
ahead in the CPA world was from a strong work ethic, to Community Associations, country clubs, other
long hours, and hard work.” nonprofit organizations and construction contractors.
In his leisure time, Wayne enjoys going to the gym Wayne can be reached at (760) 320-0848 or
and riding his Harley in the mountains. He has a great wayne@brabo-carlsen.com.
H ave you given thought about the benefit of your CAI
membership lately? You may not have thought about
it, but a lot of what you find out is likely a result of your being
Both the Government and Public Affairs Committee
(G&PA) at the national level and the California Legislative
Action Committee (CLAC) at the state level, work hard for
a member of CAI. the community associations and our career paths. The
Every month, the local chapter holds a great educational laws are constantly changing and these two groups help
program and networking breakfast or lunch. It is a nice keep us informed of those changes. GP&A developed a
getaway from the normal day-to-day workload, and a way website called Mortgage Matters that educates us as well
to socialize with friends in the industry. You can go back as lenders, real estate agents, and our government. GP&A
to work with a tidbit of knowledge you didn’t have before. also posts a “tweet” on Twitter every day with news of what
About 150 of your colleagues attend these events. is going on. If you don’t subscribe to Twitter, you might
Periodically, the chapter holds business partner expos want to give it a try, if for nothing else but this one CAI
that do just that, they expose the offering of the busi- benefit.
ness partner to the membership. These are few and far There are many more benefits! If you have a favorite
between, but they sure provide manager and board mem- that I haven’t mentioned, send us a message and let us
ber education! know. CAI is here for you – enjoy the benefits.
At the national level, there is an annual conference
where over 500 of your colleagues attend from around the Steven Shuey is a certified professional community
country. This year it is being held in Las Vegas, May 2nd association manager. He serves on the National
through May 5th. This venue is close enough to be an inex- Faculty of CAI and a past board member of the
pensive educational getaway. These are busy days filled APCM. Follow him on Twitter at www.twitter.
with educational classes that will surely be good career com/@IslandMgr or email him at IslandMgr@aol.com.
builders.
18 Quorum April, 2012 www.CoachellaValleyCAI.org 19Feature
DESERT RESORT MANAGEMENT.
Congratulations!
answered as well as keeping the board informed of the
Providing quality professional
management services throughout the
You Are on committee’s actions. Most of these committees meet
at least once a month so it is important to plan time for
the Board!
these meetings as well.
Coachella Valley and surrounding areas. Being on the board can also mean making tough deci-
sions. The primary role of the board is to conduct the
Ou R fOcuS iS ON yOu.
Serving community associations since 1987, Desert Resort Management
Now What? business of the Association and that means being able
to develop and enforce policies and procedures. Many
times, enforcing these policies and procedures may not be
(DRM) provides services that enrich communities and enhance the
associations we serve.
Expectations and Duties of the popular thing to do! Board members are required to
step outside their immediate circle of family, friends and
• National strength. Local attention. • Management, financial and
an Effective Board Member neighbors to make decisions based upon the greater good
of the community. Although this can be difficult at times,
development services.
• Service-driven technology the experience of being on the board can also be one of the
backbone. • Turnkey service to our clients. By Sue Anderson, Universal Protection Service most rewarding volunteer experiences for an individual.
• Innovative programs to save your • Industry’s best trained team. Congratulations, you are now officially a board member What are some key traits of an effective board member?
association time and money. in your community. What can you expect and what does it The following are a few characteristics of successful board
• Commitment to clients.
take to be an effective board member? Most likely the first members:
step will be a meeting with the property manager who will • Diligence in reading the governing documents.
spend an hour or two going over the details of your new role
• Always prepared for board meetings.
Desert Resort Management SM
as well as the nuances of the community. Most communi-
• Professional demeanor.
42-635 Melanie Place, Suite 103 ι Palm Desert, CA 92211 ι Telephone 760-346-1161 ι Fax 760-346-9918 ties will also have an orientation meeting in which there
Web www.drminternet.com ι Email info@drminternet.com will be an update of the committees so new board members • Welcomes and participates in education and training.
can determine which committees they will be assigned • Constantly seeking ways to promote effectiveness on
to. It is customary for each committee to have two board the board.
members in its membership. The board will take a look at
Perhaps one of the most appreciated characteristics found
the abilities and preferences of the new board members to
in successful board members are those people who are
In Community Association Law… determine who should be placed on the appropriate com-
mittees. Also during the orientation meeting, new board
acting in good faith and are not joining in order to promote
the Devil is in the details.
personal agendas. Art Coulter, seasoned board member
members will be given the Bylaws, CC&R’s and Rules &
at Palm Valley Country Club, states, “The board is always
Regulations of the community. It will be the responsibility
looking for someone who wants to serve for the benefit of
of each board member to familiarize himself/herself with
If you are involved in the management of a community association, you the community and not for a personal agenda.” Art also
these documents.
know that State and Federal laws that govern associations complicate encourages people thinking about joining the board to first
Perhaps the greatest time commitment will be attend-
decision-making and make the conduct of association business challenging. get involved on a committee in their community. This is a
ing monthly board meetings. These meetings consist of not
great way to get an idea of the time commitment involved
only the regular sessions open to all homeowners who wish
At Epsten Grinnell & Howell, knowing the details of community association as well as getting to know others already on the board!
to attend, but also the executive sessions where items such
law is our only business. Our attorneys constantly review the fine print of
as contracts and legal issues are discussed. These meetings
the law and client governing documents. This attention to detail ensures Sue Anderson is the Sales & Marketing Manager
are often lengthy so it is important to devote at least one
that clients receive effective, practical solutions to legal problems. for Universal Protection Service in Palm Desert
day a month for attending these meetings. Please remem-
providing security solutions for gated communities
Let our comprehensive understanding of community association law ber there is also the preparation for the meetings. Board
throughout the Coachella Valley. She can be
contribute to the success of your association. member packets will typically be distributed 5-6 days prior
reached at (760) 505-3412 or by email at
to the actual meeting in order for members to have enough
Call us today… We have a lot of common interests. sue.anderson@universalpro.com.
time to prepare.
As mentioned above, board members are required on
each committee. That board member will serve as a liaison If you are currently on a board within your association
and will not have voting power on the committee. The or a homeowner interested in learning more about
board operations, please consider attending the
head of the committee is there to represent the board and
800.300.1704 l www.epsten.com upcoming CAI Essentials Class (“Board Boot Camp”)
ASSOCIATION COUNSEL • ASSESSMENT RECOVERY to act as a conduit for the free flow of information between
San Diego Coachella Valley Inland Empire being held on April 12th. For more information,
858.527.0111 760.836.1036
the board and the committees for whom you are a liaison. contact the CAI Office at (760) 341-0559.
CONSTRUCTION DEFECT • CIVIL LITIGATION 951.461.1181
It is important to make sure the committee’s questions are
20 Quorum April, 2012 www.CoachellaValleyCAI.org 21Feature Feature
from a glorious three-week vacation, quickly and efficiently before it
open the door and are greeted with becomes a huge problem.
soaked carpeting and mold creep- Developing a mold allergy usually
ing up the walls. A rain deluge over- doesn’t happen overnight, and most
whelmed frail roofing, a plastic water situations such as coming home from
pipe in the wall cracked, the water line vacation and seeing water damage
to the refrigerator came loose, a toilet doesn’t automatically mean mold.
tank overflowed, or the dishwasher But a mold allergy does, however,
line burst, are among the possible come from mold exposure. It takes
culprits, and there are more. Plus, this daily exposure to even low levels
can happen in a new home almost as of mold spores in the air to create
easily as an old one. a problem. But once you get it, “it
What’s the first thing to do? First, keeps on giving.”
determine the source of the water. Like many other allergies, it can
If it isn’t obvious, call a plumber. He make your life miserable. If you see
may not be the final solution, but he mold, and do nothing about it (“it’s
can determine where the water is only a little”), you may pay, pay, pay.
coming from. If the source is identifi- The outdoor air always has mold
able, there are a couple of next steps: spores, sometimes many of them.
if the water is still flowing, turn it off, For example, where trees shed their
tracing the water all the way back to leaves in the fall, and fallen leaves
shutting down the main valve to the are raked into piles, mold goes to
home. A broken hose can be replaced. work on them immediately. Disturb-
A broken line will require a plumber. If ing those piles sends choking clouds
the water source is no longer flowing, of mold spores into the air. But in
then it is likely that it didn’t come from any climate the ambient mold spore
a broken pipe or water line. It is likely level will vary with the time of day,
Mold In The Desert? a leak from an outside source. While it
may be necessary to call a contractor
to repair the source of the leak, like a
the temperature, the wind speed, the
humidity, and the season.
When mold is cleaned up and
Don’t Be Deceived, There Is Mold All Around Us roof leak, it is also time to call a mold the damage repaired, make sure
inspector to determine the severity of there is a certificate or report that
the problem. Based on that evaluation, the homeowner or association can
By Greg & Barbara Masters, Masters Environmental it may be determined that the water keep as proof that the mold has been
damage may be an Association issue, professionally taken care of, and that
Southern California and the Palm not even know it is there. It may be and the Association manager should no mold remains. As a property sale
Springs area in particular, has that only when respiratory problems be contacted. Insurance may cover inches along through escrow, this
relatively low humidity, rivaling the are starting in children or in people water damage, but may (explicitly) not question can pop up. If no record
Sahara Desert (average yearly humid- whose immune systems are compro- cover mold. Pull out your homeown- exists, it can trigger an extra expense
ity is 25%). But when a desert down- mised that the owner starts searching er’s insurance policy and search for for a mold investigation.
pour finds a damaged roof or a roof for answers. Homes that are most at water damage and mold coverage. So, do desert dwellers need to be
where the flashing has been ineptly risk for roof leaks and mold are those A caution: select a mold inspector concerned about mold? The answer
installed, the stage is set for mold with a flat roof. A drive through desert separate from a company specializing from The Prairie Home Companion:
growth in the house. If the water is communities will reveal many, many in repairing mold damage to avoid “You betcha.”
not dried out immediately, mold will homes with flat roofs. Talk to the being told that the damage is greater
be seen growing in a week. Add high owners of these homes, and you will than it actually is. While a mold Greg and Barbara Masters are the
temperatures and high humidity, you find they are very aware of the neces- problem truly can be a “supersized” owners and operators of Masters
will be raising a full mold crop in less sity of keeping their roofing in good and costly project should black mold Environmental. They can be reached
than a week. condition. be detected behind drywall, there at (760) 200-2900 or by email at
The mold may not be easily Let’s, for a moment, consider a real- are many instances where a poten- gmasters@sonic.net.
detected, and the homeowner may istic scenario: Homeowners return tially severe problem can be handled
22 Quorum April, 2012 www.CoachellaValleyCAI.org 23February Monthly Program Chapter Events
• Possible rate increases in 2012
What’s in the HOA • Updates on earthquake coverage
Insurance Market • Coverage changes that could affect you
• The right type of Workers Comp Insurance for you
for 2012? • Have enough D&O Coverage?
A B
Guest Speakers
A. Carol Fulton, CIRMS
LaBarre/Oksnee Insurance Agency
B. Sarah Davis
Regional Underwriting Manager,
Philadelphia Insurance Co.
Thanks To Our
February Program
Sponsors:
AMS Paving
AWS Consultants, Inc.
Ben’s Asphalt
Gerard Roofing Technologies
MC Painting & Construction
Pacific Western Bank
Peters & Freedman, LLP
Prendiville Insurance Agency
PWLC II, Inc.
Verizon Enhanced Communities
Thanks To Our
February Scholarship
Sponsor:
Professional Community Management
24 Quorum April, 2012 www.CoachellaValleyCAI.org 25Feature Feature
wind and storm surge For example - Our insured has a building with an insur- until they do. These three losses occurred on accounts
hazard models farther able value of $500,000. He has purchased an insurance with a 0% loss ratio with PHLY and all were discovered
inland (in some cases policy for $350,000, with an 80% coinsurance clause. Six within three months of this presentation. Anytime that the
more than 100 miles months into the policy, a fire erupts and causes $60,000 economy dips as dramatically as it has over the past few
inland) which had a in damage. By applying the coinsurance formula, we see years, insureds are at a higher risk for crime and GL claims
major impact on insur- that the insured was required to have $400,000 of coverage to occur to supplement individuals who feel they have no
ers whose nationwide ($500,000 X .80), so: other options to turn too.
book included Texas One last issue that I wanted to address with all of you
and mid-Atlantic 350,000 is the recent changes to the Davis-Stirling Act. The Davis-
regions. Since most X 60,000 = 52,800 Stirling Act is a comprehensive body of law governing
Commercial
US reinsurance treaties renewed on January 1st with an 400,000 common interest developments that became known as the
expected 7-30% increase depending on the company’s book Davis-Stirling Common Interest Development Act.
of business, many companies took higher attachment punts Because the insured did not meet his coinsurance Priority Changes in 2011 include:
Insurance in order to manage rate increases for their clients. Over-
all US reinsurance rates rose the highest percentage with
requirement, he has become a partner in the loss to the
tune of $7,200 + deductible.
Carbon Monoxide detectors are required in every
dwelling unit where the home has a gas burning furnace,
for Associations
Europe remaining relatively flat and the Asia market being Insurance to value can be determined by professional
cook stove, water heater, wood burning stove, and fireplace
the most volatile. The Asia reinsurance market has over a appraisals, by the Marshall Swift Boeck Commercial Build-
or attached garage. Condos and townhomes must install
1000% loss ratio due to CAT events, but since reinsurance ing Valuation System (MSBVS), Professional appraisals or
them by no later than January 1, 2013.
Insurance Market Update for treaties renew much later in the year, it is too early to pre- a contractor’s estimate. Valuations are based on type of
Electric Charging Stations – HOA’s are prohibited from
dict how much their increases will affect the overall market. materials used in construction, CC&R replacement require-
2011 and a Look Ahead to 2012 In all, for property & casualty insurers, the average com- ments, square footage, etc.
unreasonably restricting the installation of electric vehicle
charging stations. Members who place charging stations
bined ratio (profitability – losses and expenses/premium) Three things can occur if properties are in common areas are responsible for costs associated with
By Sarah Davis, which is the highest since 2006 according to BusinessInsur- underinsured: maintaining and repairing the station as well as costs for
Philadelphia Insurance Companies ance.com.
damage to common areas and adjacent units resulting
In order to consider what’s coming in 2012, you must • The insurer is left without sufficient premium col-
from installation and maintenance of the station. This new
The most unusual year on record for insurance claims in look to the reinsurance market first since increases in lected to pay for the more severe losses or the fre-
statute does allow individual owners to use or occupy com-
the last decade was 2011. As of June 30, 2011, claims had reinsurance pricing leads to increased primary rates, most quency of small ones that will occur
mon areas contrary to existing statutes and case law. The
reached the highest level per year on record globally due to dramatically for CAT prone accounts. Insurers that previ-
• If every insured purchased less than enough, then association must approve the installation of the charging
an extraordinary accumulation of severe natural casualties ously took low attachment points to manage expenses will
rates would have to be significantly higher station if the owner agrees to (1) comply with architectural
such as earthquakes, tsunamis, floods and tornados. By likely be underwriting more conservatively since it is now
standards for the installation, (2) engage a licensed con-
June 30th, globally the world had accumulated more than their own companies’ money on the line instead of the • The major risk to the insured is that they would not
tractor to install the station, (3) within 14 days of approval
$265B in economic losses and $60B in insured losses which reinsurer’s money. Overall, the insurance industry has have insurance protection for a catastrophe, and that
provide a certificate of insurance that names the associa-
was 4 times the national 10-yr average. In the US that realized that rates have fallen below what is adequate in could severely impact their existence and ability to pay
tion as an additional insured under the owners liability
attributed to $27B in economic losses and $14.7B in insured the market and that risks being assumed need more rate to claims.
policy, (4) pay for the electricity usage.
losses just through June 30, 2011. This was a 162% increase produce adequate returns and therefore are more accept-
Overall in the industry, claims are on the rise. We have In all, 2011 was a volatile year for insurers due to signifi-
over YTD 2010 losses. Experts have predicted that 2011 will ing of the need to change. The overall property market is
seen a significant uptick in property claims due to CAT cant CAT and loss events in addition to property rates being
become the 5th or 6th most expensive year in history for beginning to adjust but we are only at the beginning, more
events that I have already described, but we have also at the lowest peak in the market. This resulted in insurers
insured catastrophic losses in the US. rates will be needed to reach rate levels that are adequate
seen heavy claims activity in other lines as well , such as ending the year with combined ratios over 100% on aver-
If you look at the last 21 years of insured losses, 3 of for exposures.
crime. Some recent examples have included maintenance age and the reinsurance market levying heavy increases
the most catastrophic events have taken place in the last One way that insurers are evaluating their property book
supervisors skimming $17K from money generated by coin against US property/casualty carriers depending on the
18 months; including the Japan quake/tsunami, the 2011 of business is by looking at ITV (Insurance to Value). 98%
operated laundry machines; during a large scale renova- placement of their book and the insurer’s accumulation of
Spring Tornado storms; and the New Zealand quakes. of fire losses are partial losses which provides insureds
tion project a property manager altered checks intended CAT prone insureds based on new modeling software. This
While it may seem that these losses are far away from your with strong incentive to cover their property only up to
for an approved contractor to the name of a construction volatility has lead to increased reinsurance and primary
association, there is a major impact on individual accounts the values of their expected losses. However, since rates
firm owned by her husband for a total of $156K in losses; in rates in the market and will continue until the market
because of these events. In addition to these losses, there are promulgated on full value insurance, this tendency is
another instance, an accountant for a country club used the evens out with losses and rates so that insurers can once
were also a few changes in the modeling of how insurers a major problem for property insurers. ITV is the basis for
clubs online banking to pay his personal debts out of the again show profitability.
would look at potential losses that has an effect on indi- rate development and is how insurers ensure rate adequacy.
clubs account then manipulated the financial documents
vidual account pricing and insured capacity. RMS 11.0 One incentive for insurers to insure to value is the coinsur-
to cover his tracks for 8 months with the loss ending up at Sarah Davis is the Regional Underwriting Man-
came out early in 2011 which significantly increase PML’s ance clause attached to your policy. This insures proper
$75K before the club discovered the issue. Can your asso- ager for Philadelphia Insurance Companies,
(Probable Maximum Losses) for insurers relative to US ITV and also results in a lower rate/unit for your property. responsible for 18 underwriters and raters. She
ciation afford NOT to carry the right amount of coverage?
wind events. This revised modeling software pushed both Coinsurance is calculated based on Did/Should x Loss. can be reached at (949) 330-2389 or by email at
No one thinks these types of losses will happen to them,
sarahd@phyins.com
26 Quorum April, 2012 www.CoachellaValleyCAI.org 27You can also read
