There are condominium and homeowner associations that should apply for a name change. Maybe, Ostrich Heights, Head in the Sand Court, Ostrich Sands HOA or Deny and Ignore Square.

Plausible deniability is not the standard by which your associations should operate. Unfortunately, that's exactly what too many associations are doing.

Too many Associations don't get a reserve study because they don't want to know the true cost of maintaining, repairing and replacing their property. Too many associations perform band-aid repairs to failing roofs, unit decks, window penetrations and plumbing systems because they know, or are at least fear that a competent expert will recommend significant repairs or replacement. Some associations know they have problems and go to great lengths to avoid the removal of siding because almost every time their building is exposed, they find significant rot and decay.

These are examples of troubled associations. Underfunded reserve accounts create even greater liability as the inevitable repair or replacement time draws nearer. Associations with property damage will continue to rot, and the damage will increase over time. Some Associations attempt to rationalize their failure to act. They assume the roof can't be all bad (even though failures are widespread.) They pretend that all the decks can't leak (even though every deck was constructed similarly.)

And here is another of my favorite rationalizations: "If we uncover a bunch of damage, our insurance company is going to drop us." Here's the problem. If you have reason to believe the property has water intrusion or other damage and fail to take any action, then the insurance carrier is likely going to assert coverage defenses that jeopardize any claim you make. In other words, ignoring problems to avoid red flags with your insurance provider may afford you the right to continue making premium payments for coverage that is going to be denied. That's no bargain. Insurance is expensive. Paying for coverage that doesn't exist because the carrier has a defense to coverage is a terrible business decision. When the facts tell you there's trouble, you should not ignore it. Evaluate the problem. Evaluate options and devise a plan of action.

Once you become aware of damage, the clock to make an insurance claim likely starts ticking.The attorneys at Barker Martin have extensive experience providing legal consultation on all aspects of property damage claims, insurance coverage, large projects and repairs. We can help you formulate the right strategy for your association to keep your head out of the sand.