1165 BETHEL STREET

HONOLULU, HAWAII 96813

INSURANCE DEDUCTIBLE is the amount of money the associa-

tion is obligated to pay out of pocket toward damages or a loss

before the insurance company pays for a claim. For example, if

the association’s property policy deductible is $5,000 and it

files a claim for losses totaling $20,000, the insurance company

will be obligated to pay only $15,000 ($20,000 total loss -

$5,000 policy deductible).

Who’s responsible? The responsibility of paying the deductible

varies from association to association, depending on the stipu-

lations of their governing documents or any polices that may

have been previously adopted by the association as to the pro-

cess in assigning the responsibility of the policy deductible.

That being said, this is how it’s commonly done:

1. Homeowner responsibility – if the source of a loss is

from a component that services a single unit exclusively;

or if the loss resulted from an act committed by the

homeowner, the payment responsibility of the deductible

is assigned to the responsible homeowner.

2. Association responsibility – if the source of the loss is

from a common element, whereas the cause was not con-

tributed by an act of any homeowner; typically, the

Board would treat the payment of the deductible as a

common expense to be paid from the association’s funds.

HO6 POLICY – is an individual condominium owner’s policy.

It is typically nominal in cost, but provides condominium own-

ers with protection coverage that the Association is not normal-

ly responsible for regardless of the cause of loss, to include:

the deductible on the master policy, loss of unit contents (such

as furnishings, clothing and computer equipment), loss or rent

due to unit damage, temporary living accommodations, remov-

al and temporary storage of contents and loss of wages. For

any homeowner of a community association that does not have

this policy in place, we highly encourage you to contact any

reputable local insurance agent/brokerage and secure it at your

soonest opportunity.

THE ASSOCIATION’S INSURANCE PRIMARY – perhaps one of

the most common misunderstanding is who is entitled to cover-

age under the association’s master property policy. Many

believe that if the loss was caused by a homeowner, it is that

homeowner’s responsibility or the homeowner’s HO6 carrier to

pay for all costs related to the loss and that they are not entitled

to seek relief through the association’s master insurance policy.

This is false! In Hawaii, as in other states, the association’s

insurance policy is always primary, regardless of the cause

of loss. Cer tainly, the Board may assign the cost of the

uninsured deductible to the responsible homeowner, if the

cause of loss warrants it; but it cannot prohibit any owner from

filing a claim against the association’s master policy, even if

the loss was caused by the homeowner’s negligence.

Again, this article is in no way intended to satisfy any questions

for your insurance professional and by all means is not to

replace or supersede any advice provided by them; but with the

terms and definitions provided herein, we hope that your next

conversation with your agent/broker will be more comfortable

and meaningful.

Continued from page 3

www.hawaiianprop.com

H

Building Relationships That Last AWAIIAN PROPERTIES, LTD.

Phone (808) 539-9777 Fax (808) 521-2714 Call (808) 539-9502 to request a proposal

Honolulu Office: 1165 Bethel Street, Honolulu, Hawaii 96813

Kailua-Kona Office: 75-240 Nani Kailua Drive, Suite 9, Kailua-Kona, Hawaii 96740

“Information was very helpful! Very well organized!”

-Kevin Kuykendall, Village On The Green

“The orientation gave me all the necessary information

needed as a new board member.”

-Larry Blumer, Ridgeway D

“The information made me feel more relaxed about my

new role.”

-Susan Trombley, Ke Noho Kai Townhomes

NEW BOARD MEMBER ORIENTATION

Hawaiian Properties hosted a new board member orientation on April 20, 2019. We discussed the roles and

responsibilities of new board members and the basics of serving on the board. Attendees had an opportunity to ask

questions, meet more of the Hawaiian Properties team, and were provided with valuable resources to help them be

successful in their new board member role.

SUMMER 2019 ISSUE

BY CHRISTY HINDS RS-80955, CMCA, AMS, PCAM

There are several things board

members can consider to

make sure their association is meeting

the needs of its elderly population throughout the community.

Outdoor Lighting. Add lighting or redirect existing lighting

to better illuminate sidewalks, parking areas, landscaping and

trash areas. Make sure all building numbers are lit and visible

from the roadway or parking area. Lighting should be placed on

building signage, entrances, exits, doorways and stairwells.

Adding solar lights to dark areas is a quick fix.

Sidewalks, stairs and walkways. If the sidewalks are cracked

and lifting, repair them. A height difference of 1/4” is enough to

be a trip hazard. Consider adding root barrier along sidewalks to

prevent roots from lifting the concrete. Non-slip treads on stairs

are easy and inexpensive to install and can prevent slips and

falls. Add contrast strips on the top and bottom stairs and

consider painting the tread and riser different colors to help de-

lineate each stair. Make sure handrails in stair-

wells and on slopes meet code requirements and

are securely fastened. Consider adding a handrail

on both sides of stairwells and slopes.

Common area doors and locks. Does a home-

owner have to ‘jimmy’ the key or have superhuman strength to

open the pool gate or restroom doors at the recreation center? As

we age, we can start to lose the strength and dexterity to perform

ordinary tasks. Think about this on your next inspection and see

if there are features that can be repaired or replaced that could

improve the quality of life for residents. Consider switching to an

electronic or keyless entry system that allows residents to swipe

a card or fob. Install grab bars in restrooms and install non-slip

flooring in areas that are especially prone to being wet.

Landscaping. Tr im trees, shrubs and bushes that block or

encroach on parking stalls, sidewalks and entryways. Building

and road signs should not be obstructed by overgrown landscape

either. Association staff, the board or a landscape committee

should check landscaping monthly. Irrigation should be moni-

tored regularly to make sure that water is not ponding on

sidewalks. In our tropical climate, ponding water can turn into a

breeding ground for algae and moss causing a slick walking area.

Written communications. Wr itten and email communica-

tions can be difficult to read as people age. Consider increasing

font size and writing in black only and avoid colors that do not

stand out against the background color. Post

notices in well-lit areas and have copies availa-

ble for residents to take home.

Verbal communications. When speaking to

owners who may have hearing loss, turn your

head, face them and avoid doing other tasks.

Follow up with a written letter to help reinforce the communica-

tion and ensure that nothing was missed during the conversation.

Activities. Consider establishing a social committee, creating

an events calendar and organizing regular potlucks, card games,

bingo, puzzles, trivia and fitness sessions. Keeping fit mentally

and physically improves everyone’s quality of life.

Fire and Disaster Planning. As residents age, their reaction

times slow and the ability to move quickly during a fire or disas-

ter lessens. Develop an emergency plan that includes evacuation

procedures for aging residents who

might need extra assistance. Be sure to

share the plan with emergency person-

nel. Test and replace smoke alarm

batteries every six months and conduct

regular fire and emergency drills to help

prepare residents for the worst.

COMMUNITY CONSIDERATIONS

PLEASE WELCOME OUR NEWEST ADDITIONS TO THE HAWAIIAN

PROPERTIES ‘OHANA

Jamieson

Kanemoto

Property Manager

Jocel Taguiran

Property

Manager

Charmaine

Camilo

Property

Manager

Theodore Slocum

Property

Manager

2

Joseph Lee

Property

Manager

Joseph Garrity

Property

Manager

One of the most difficult challenges for

Board members is understanding

the association’s insurance coverages. Ne-

glecting to have the required insurance policies and adequate

coverage limits in place could result in significant problems;

but fortunately, Associations have a designated insurance

professional, agent and/or broker, to guide Boards in ensuring

that all of their insurance obligations are met. The purpose here

is just to provide a general understanding of insurance to enable

you to have meaningful conversations with your agent/broker,

while discussing your association’s insurance obligations.

Let’s start with summarizing the most common insurance poli-

cies:

1. Property (commonly referred to as the Master Policy)

– pays for repairs up to rebuilding the condominium

at current replacement cost when damaged by a covered

peril. Covered perils include fire, smoke damage, light-

ning, wind, hurricane, fallen objects and sudden and acci-

dental water leaks. The latter, (accidental water leaks)

being the most common cause for claims filed against

this policy

2. Commercial General Liability (CGL) – protects the

assets of the Association in circumstances where it gets

sued for bodily injury or property damage to 3rd parties.

Examples of liability losses include - injury caused by a

slip and fall in the common elements, mechanical garage

gate closing on top of a vehicle, etc.

3. Directors & Officers Liability (D&O) – defends Board

members from charges of actual or alleged wrongful acts.

Typical complaints arise out of claims of discrimination,

breach of contract, conflict of interest,

wrongful termination, selective enforcement, etc.

4. Commercial Umbrella Liability– provides additional

liability protection in case of a loss exceeding the lim-

its available under the CGL and D&O policies.

5. Fidelity Insurance/Crime – insures the Association

for losses resulting from criminal acts or theft of Asso-

ciation funds.

6. Worker’s Compensation and Employer Liability–

pays the cost for medical care and loss of income to an

employee that suffered a work related injury.

7. TDI – pays for loss of income up to 6 months to em-

ployees unable to work, due to injury or illness, not job

related.

INSURANCE LIMITS is the maximum amount of money your

insurance company will pay for a covered loss under the

policy. The best way to identify what the limits are on your

association’s policies is to refer to the “insurance summary”

that is prepared and provided by your association’s insurance

professional annually, normally following the renewal of the

insurance policies. For liability policies, the insurance limits

are normally classified into two separate categories:

1. Per occurrence – the maximum amount an insurance

company will pay for a claim resulting from a single

occurrence.

2. Aggregate – the maximum amount an insurance com-

pany will pay for all claims during a single policy peri-

od (typically one year).

BY MICHAEL “MIKE” GORDON, PCAM VICE PRESIDENT/SENIOR PROPERTY MANAGER

UNDERSTANDING ASSOCIATION INSURANCE

4. Commercial Umbrella Liability– provides additional liability

protection in case of a loss exceeding the limits available under the

CGL and D & O policies.

5. Fidelity Insurance / Crime – insures the Association for losses

resulting from criminal acts, theft of Association funds.

6. Worker’s Compensation and Employer Liability– pays the

cost for medical care and loss of income to an employee that suf-

fered a work related injury.

7. TDI – Pays for loss of income up to 6 months to employees

unable to work, due to injury or illness, not job related.

2019

MORE DETAILS AND REGISTRATION INFORMATION COMING SOON.

A NNUAL SEMINAR

FOR BOARD

MEMBERS

SAVE THE DATE

Hawaiian Properties is holding its

annual FREE seminar for board

members on August 9th.

Please save the date.

Date: Friday, August 9, 2019

Time: 11:00 a.m. to 2:00 p.m.

Location: Ala Moana Hotel - Hibiscus

The seminar will be informative and

fun, and attendees will be treated to a

buffet lunch and giveaways.

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