Condominiums and Townhouses

Townhouses are typically residential whereas condos may be commercial. Individuals or corporations buy condos or townhomes. Individual unit owners make up condo and townhouse organizations, each owning a unit and a part of common amenities. The bylaws will specify who owns what. Members are responsible for their units’ interiors, including appliances, business or personal belongings, flooring, lighting, and wall coverings. The association is responsible for maintaining any common facilities, including clubhouses, electrical wiring within walls, elevators, escalators, exterior walls, foundations, grounds, hallways not limited to the interior of individual units, HVAC systems, outside fixtures, parking areas, plumbing systems, roofs, swimming pools, and other recreational facilities. Unit owners elect or employ association leadership to handle upkeep. The organization leadership sets and enforces regulations for the membership. The organization determines, collects, and disburses maintenance, upkeep, and insurance assessments from members.

Property Exposure

The amount of property exposure depends on the number of units. The electrical wiring, heating, air conditioning, and culinary systems are ignition sources. The value foundation for which property objects must be covered by the association is specified in the bylaws of the organization. The majority of the land is categorized as buildings. Only office equipment, computers, and the contents of communal buildings are considered personal property. If the structure was converted from a previous use, it must adhere to all current building regulations. It’s possible for each apartment to have its own heating system, or there might be a boiler building that provides heat to every unit. Continuously performing regular maintenance is required for all systems. Smoke/fire alarms have to be hardwired in each apartment and communal spaces.

Crime Exposure

Employee dishonesty in the management of members’ escrowed funds exposes crimes. Only maintenance and repairs are permitted to be made using these monies. All workers should undergo background checks. Receipts and routine monitoring are required to keep track of monetary transactions.

Inland Marine Exposure

The accounts receivable for unpaid association dues and assessments, computers, and priceless documents and records for association and owner information are the sources of inland marine vulnerability. All records should be duplicated and preserved off-site to provide quick replication in the case of a loss. Although much of it is classified as building property, lawn equipment may be regarded as the property of contractors.

Premises Liability Exposure

Premises liability risk arises from all common spaces for which the association is accountable, including community buildings, grounds, parking lots, walkways, roadways and roads, swimming pools, and any other facilities utilized by members and visitors. All buildings should comply with smoke and fire detection, fire extinguishers, and carbon monoxide detector requirements. All establishments must have excellent flooring to avoid slips, trips, and falls. In case of power outage, there must be enough well-marked exits with backup illumination. Handrails, well-lit, signposted, and well-maintained steps are essential. Parking lots and walkways must be in excellent shape, level, and slip- and-fall-free. Maintaining balconies is important. Pools, gyms, and playgrounds should be maintained for members and their visitors. The association should keep a maintenance journal to document owner requests. Invasion of privacy or prejudice may cause personal damage. Clear rental or resale criteria are needed.

Directors and Officers Liability Exposure

The association’s activities to uphold the rules and levy assessments expose the directors and executives to responsibility. Boards acting without authorization might result in lawsuits.

Automobile Exposure

For workers performing errands, automobile exposure is often restricted to rented and non-owned vehicles. Any driver must have a valid driver’s license and an approved MVR if there are privately owned cars present, such as those used to service units. Records must be stored centrally and vehicles must be maintained.