Risk Management

As summer begins and temperatures rise, members and their guests may be tempted to go up on the roof and sunbathe, barbecue, or just cool off from their hot units. Unfortunately, allowing people on the roof of your condominium building can create problems for you and the association. For example, if a member or guest gets seriously injured or causes costly property damage, a court may rule that you’re liable for the injuries or damage because you let members and guests use the roof. How can you avoid this risk? Consider banning members from using the building in this way.

Major storms like Hurricane Sandy--the largest Atlantic hurricane on record, as well as the second-costliest Atlantic hurricane in history--reveal one of the biggest public-perception gaps with energy: You don’t notice it until it’s gone. As a result of Hurricane Sandy, many residents of New York and New Jersey still didn’t have power a week after the storm hit.

Whether it’s for fun, exercise, environmental concerns, or in an effort to save on gas prices and car expenses, an increasing number of children and adults have been riding bicycles. Many of your association members or their children may ride their bikes within the community. While bicycling should be encouraged, it can also create liability for the association if you don’t set rules to improve safety for not only these cyclists, but also members who walk or drive there.

As the seasons shift at your community, you'll be presented with safety, equipment, and maintenance challenges. Summer is quickly approaching. Are you ready? Follow the Insider's step-by-step summer preparedness guide to minimize risks associated with the season and ensure that community members get the most out of this pleasant time of the year.

Natural disasters are frightening for any homeowner, but they're an even greater threat to clustered, attached, and stacked homes in a community association. When one home is damaged, others connected to it are more likely to experience damage either resulting from that home's damage or because of greater exposure to weather conditions.

When you hire independent contractors to perform work at your community, you risk being sued if any of the contractors' workers are injured on the job. Any good community association manager will want to ensure that work is being done correctly, on time, and without risks to the community or its members. So, it's good to keep a keen eye on contractors' employees as they work on projects for which you've hired them.

Few parts of the country have escaped the wrath of Mother Nature this year—we've suffered tornadoes, floods, a hurricane, and even a blizzard. Last winter, New York City experienced record-breaking snowfall that challenged the city's budget and snow removal strategies. And in advance of a February ice storm, the National Weather Service urged building owners in the Northeast to clear rooftops, awnings, and overhangs of snow to avoid potential collapses.

Ally Financial, one of the nation's largest lenders, recently announced that it's withdrawing all of its foreclosures in Maryland that were approved by employee Jeffrey Stephan, the “robo-signer” who admitted he signed off on thousands of files every month with little or no review.

Summer is approaching and your association may be planning some sort of community-building events, such as pool parties or cookouts with plenty of food and drink. Often at these events, an association will serve alcohol. The association knows that more members will attend an event that provides alcoholic beverages than they would for a “dry” event.

Speeding drivers in your community can ruin your neighborhood's tranquility and, more importantly, threaten the safety of anyone on foot, especially playing children. According to the American Journal of Public Health, two-thirds of children who are hurt or killed in traffic accidents are struck and injured within several blocks of their homes.