What You Need to Know About Condominium Association Insurance Policies

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Written by Alexa Jackson

Category: What We're Thinking About Lately...

Published: 18 October 2018

Condo owners are often unaware of how insurance coverage works in the case of damage to a unit. Your association's insurance policy covers the building's Common Elements. It does not cover all of the contents of your unit. Every condo owner should carry their own insurance policy that covers their own personal property and other parts of their unit that are not covered by the association's policy. 

Unit Owner's Property Insurance Should Include:

• Floor covering, wall, and ceiling coverings
• Additions, Alterations, Improvements, and Betterments

Important Points to Consider:

• Although the association policy includes coverage for water damage to the building, it does not cover water damage to your personal property.
• "Mandatory Unit Owner Coverage" as defined by the Illinois Property Condominium Act: The board of directors may require condominium unit owners to obtain insurance covering their personal liability and compensatory damages to another unit caused by the negligence of the owner or his/her guests, residents, or invitees, or regardless of any negligence origination from the unit. 

Other Considerations for your Condo Policy Include:

• Coverage for back up of sewer and drains
• A "Special Coverage Form" for Improvements and Betterments and Personal Property
• Extended Replacement Coverage for Improvements and Betterments 

To learn more, click here.

A Chicago Recycling Guide

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Written by Alexa Jackson

Category: What We're Thinking About Lately...

Published: 10 October 2018

Recycling can get confusing. What is recyclable? What isn't recyclable? Will the City charge me to pick-up my unwanted furniture? We have your answers. 

Recycle These:

1. Cartons

2. Glass Bottles and Jars

3. Metal Cans and Foil

4. Paper and Cardboard 

5. Plastic Containers

Keep These Out:

1. Garbage

2. Plastic bags or Wrap

3. Food and Liquids

4. Scrap Metal

5. Tanglers (cords, cables) 

Items Picked up by the City, Free of Charge:

1. Leaves and Yard Clippings

2. Yard Waste

3. Furniture

4. Major Non-Working Appliances

5. Old Mattresses

To learn more about recycling in Chicago, click here.

Check your Pipes - You May Have Kittens

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Written by Alexa Jackson

Category: What We're Thinking About Lately...

Published: 02 October 2018

Recently, a team of plumbers rescued a kitten that got stuck in the pipes of a Chicago condo building. The cat had slipped into an uncovered gutter and found its way into the sewer system.

The plumbers found the kitten in a six-inch diameter pipe which, coincidentally, had a break. The break made for limited options when it came to rescuing the kitten.

The plumbers were approved by the condo association to fix the pipe and the little fur ball was pulled out safely.

All condo buildings need routine plumbing maintenance to keep lines clear and avoid backup of water and sewage into the building. And while kittens aren't a common problem, you never know what may be in the pipes!

Read all about the kitten rescue here.

Applying Reasonable Late Fees to Unpaid Condo Owner Balances

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Written by Lauren Peddinghaus

Category: What We're Thinking About Lately...

Published: 25 September 2018

Your condominium association's monthly income in the form of assessments (or HOA dues) is vital to the financial health of your association. If your association does not have a policy in place to enforce timely payment and address late payers, your ability to pay the association's bills may be compromised.

The goal of a Late Fee policy is to encourage timely payment and to collect all of the money due to the association so that it can function properly. It should not be so excessive as to make payment burdensome for owners who fall a bit behind. And it should not be used to repeatedly penalize owners for balances that remain unpaid. Unresolved balances should be addressed with prompt collection action rather than simply piling on repeated fees.

Here are a few tips for an effective Late Fee Policy:

• Set a monthly due date for assessments. Ideally, this is by the 5th of the month but could be the 7th, 10th or 15th. Do not allow owners an entire month to pay.
• Apply a Late Fee if the monthly payment is not made in full by the due date. Late Fees should not exceed more than $25 or $30/month. Excessive Late Fees can create more financial problems for owners who are already strapped.
• Take action early when an account remains unpaid. Communicate directly with the owner about their plan to get caught up. If an owner is not cooperative, enlist the help of a debt collector or attorney to address the problem. Old or accumulating balances will be ignored unless the board takes action. The squeaky wheel gets the grease!
• Be educated about the cost of collection, and be sure to let the delinquent owner know they will be charged collection fees if the board has to enlist help, and how much it could cost them if they don't get caught up. Many owners aren't aware that they will bear the cost of collecting their unpaid assessments.

Creating a reasonable Late Fee Policy and applying it consistently to all owners can help to keep your association's finances on track.