We are proud to announce some exciting new things are happening at KPA Management, starting with the launch of this blog! We have created this blog to provide homeowners with helpful industry tips, because an informed homeowner is a confident homeowner.  Your condominium unit is your home, and we are looking forward to providing you with information to help you manage the care of your home and protect your investment.  Our blog will be published on a monthly basis with new topics each month. Be sure to check us out at the beginning of every month.

We have also launched a new, re-branded and modernized website at www.kpamgmt.com!  In addition to the blog, our new website will provide more information about KPA and its services, updated pictures and staff bios, with easier site navigation and access from mobile devices.   You can easily communicate with our office staff through the website, if you are looking for general information or wish to submit a Request for Proposal for management services.  We are just a click away at www.kpamgmt.com!

KPA also offers to its clients KPAlink, an online Association management and information site. KPAlink provides homeowners with the ability to access their Association assessment account history in a secure environment, as well as view relevant Association information such as governing documents, policy resolutions, forms, meeting minutes and newsletters.   Homeowners registered on KPAlink will also receive broadcast email messages regarding community activities, projects and other important information and have the ability to submit work orders for maintenance items electronically.   This is a very useful tool for our clients and we encourage all to register.  If you are homeowner of an Association currently managed by KPA and you are interested in registering for the site, please contact our office for assistance.

This weekend on Saturday, March 7^th KPA will have a booth at the Washington Metro Chapter CAI Conference and Expo in Washington, D.C. at the Walter E. Washington Convention Center. This year’s booth theme is “Hit a Homerun with KPA Management.” We will be giving away baseball themed treats and KPA gear, but that’s not all, as one lucky attendee will win free Washington Nationals baseball club level tickets! Come stop by booth #630 and collect your giveaways, enter to win some baseball tickets, challenge yourself to game of cornhole, or simply stop by for a chat about what KPA can do for you!

While staying on trend in the social media world, we have also launched a new KPA Management Facebook Business Page. This page offers up to date information about our company as well as industry tips and information on trending topics. We post something new every Monday thru Friday, so make sure to follow us and “Like” our page at www.facebook.com/KPAmanagement.

We invite you to explore all the new happenings going on at KPA Management!

 

Author:  Tara Alrutz, Community Manager and Marketing Specialist, KPA Management

Understanding Insurance For Condominium Owners

Many condominium owners are under the impression that additional insurance is not necessary due to the Master Policy held by the Association.  This is most certainly not the case.  It is very important for condominium owners to have their own coverage, called an HO-6 policy, to cover items not covered by the Master Policy.

First, let’s explore what the Master Policy generally covers.  The Association is required to carry a Master Policy that covers the following items:

General Liability – covers the Association against liability claims for occurrences on common areas, such as a “slip and fall” or other injury.

Property – covers the common areas of the building, such as hallways, elevators, sidewalks, floors, balconies, roof and building equipment and the unit with all components that were originally provided when sold the first time by the developer such as appliances, cabinets, floor coverings etc.

Directors & Officers – covers the Board members against personal lawsuits for issues relating to their actions as a Board member.  Legal defense and judgments can be paid on behalf of the Board member(s).

Crime & Fidelity – covers the Association in the event of theft of funds or other financial misconduct and should include coverage for the Managing Agent.

Workers Compensation – covers the Association employees in the event of injury while working on the property and is required by law.

There are several other optional policies that an Association may consider, such as flood coverage, employer liability or earthquake coverage.  Each Association reviews their insurance needs with their agent and selects the appropriate coverage as necessary.

 

Now let’s talk about the HO-6 policy.  The Master Policy generally will not cover your personal property, nor liability for an incident that may occur in your unit, nor upgrades to the interior of your unit.  Generally, the Association is only obligated, in the event of a loss, to return the unit to its original condition at the time it was conveyed from the developer.  That means if you put in hardwood floors, or stainless steel appliances, the Association would not cover those items in the Master Policy.  You need your own insurance to cover those upgraded items.  The HO-6 policy is similar to renter’s insurance, but incorporates some elements of a traditional homeowner’s insurance policy as well.

There are several things to consider when purchasing an HO-6 policy:

The Master Policy coverage – each Association is different, therefore you should send your governing documents and master insurance certificate to your agent to make sure you are getting the appropriate coverage.   You also need to know the Master Policy deductible.  In the event there is a loss caused by a pipe or appliance originating in your unit, you may be responsible for the deductible on the Master Policy.  You need to make sure your HO-6 policy covers the deductible, which can be $5,000 – $20,000.

Value of your personal property – estimate the value of all of your personal property, including TVs, furniture, jewelry, clothing, collectibles, etc.

Liability coverage – you will need liability coverage to protect yourself in case of injury to another person in your unit, damages to another person’s property caused by a loss originating in your unit, or damages caused by negligence on your part.  Your insurance agent can recommend the level of coverage for liability.

Loss of use – in the event you are displaced during repairs following a major loss, your HO-6 policy can cover expenses incurred for living outside of the unit for a period of time.

Loss Assessment – covers individual owners in case the Master Policy does not cover the entire amount of a liability claim or lawsuit and the Association assesses the difference to the unit owners, or may cover a special assessment that is levied to cover large unbudgeted and unanticipated repairs. If you rent your unit you can obtain loss of rent coverage.

Due to the HO-6 policy being secondary to the Master Policy of the Association, it is imperative that your insurance agent review your governing documents and Master Policy requirements to determine the correct coverage for you.

If your lender did not require you to obtain an HO-6 policy prior to approving your loan, and you have not otherwise purchased a policy, contact your insurance agent for more information for obtaining HO-6 coverage.  If you already have an HO-6 policy, consider reviewing your policy on an annual basis to ensure your coverage is up to date.  The most common change will be to the Master Policy deductible, which occurs at the renewal of the policy.  When there is a change, the Association is required to notify all unit owners in writing of the new deductible amount.  If you are unsure of the amount, contact your Board of Directors or Managing Agent for the most current policy information.

Understanding your insurance options is important to protect yourself and your assets, and most importantly, your largest investment – your home.

 

Author:  Andrea Galler, Assistant Controller and IT Administrator, KPA Management 

Summer is a great time of year because it means warm weather, pretty flowers, and pool openings, but summer is not all ice cream and sunshine. Summer also brings severe thunderstorms and it is important to prepare your family and your home so you can continue to enjoy the dog days of summer.

It is important to practice safety during a thunderstorm. Some ways to stay safe include avoiding electrical wires and water. If lightening should strike your home the electrical charge can rush through pipes and utility wires and could result in an injury if you are touching an electrical device or water at that time. So during a thunderstorm stay away from all electrical devices including toasters, microwaves, and laundry machines as well as any water from the faucets. Another simple way to stay safe is to stay away from puddles of water, flooded areas and downed power lines. Even though a power line is down it does not mean it does not have electricity surging through its wires. Finally, never operate electrical equipment if it is wet, especially outdoors after a summer storm.

In the unfortunate event that you do lose power you want to report the power outage immediately to your electrical provider. You are able to do this online on your cell phone. Most power companies will have a hotline or online service that will update you on the outages and hopefully provide an estimate for when power will return to your home. Below is the information for local power company Virginia Dominion Power.

VA Dominion Power- https://www.dom.com/residential/dominion-virginia-power/outage-center/report-and-check-outages

If you pay for your power individually at your home it is important to have your 10-digit phone number associated with your account or your 10-digit account number, and the last 4 digits of your SSN/PIN/Federal Tax ID. You will need this information to be able to access the online service for reporting outages and getting updates. If your Homeowner’s Association pays the electrical bill for your home then you will need to contact the managing agent for your community and let them know there is an outage.

The best part of thunderstorms is after the skies clear and it’s nothing but blues skies. So enjoy your summer and remember these safety tips in the event of a thunderstorm.

Source: Rappahannock Electric Cooperative REC News

Blog Author: Tara Alrutz

Since the mortgage crisis in 2007, the industry has been working to change the process of mortgages between lenders and consumers.  Even though much of the cause of the crisis was from the secondary market, in which normal consumers do not participate, the regulatory bodies focused on the consumer side of the transaction to force change in the industry.  These changes are drafted and implemented by the Consumer Financial Protection Bureau (CFPB), which was established as part of the Dodd-Frank Act in 2010.  The CFPB, is as it name suggests, works to give consumers the information they need to understand agreements with financial companies.  Their tagline is “Know Before You Owe”.

 

Over the past several years, qualification requirements and supporting documentation requirements have become stricter, the appraisal process has been revised and consumer disclosures have been rewritten.   On October 3, 2015 one of the most significant changes will come into effect, the new TILA-RESPA Integrated Disclosure rule (TRID).  The TRID was created to streamline the process for consumers and make the loan information easier to understand.   It also improves the accuracy of information and improves the consumer’s ability to shop around for the best deal by comparing offers from different lenders in a standard format.

 

The TRID takes four current disclosures that have been used for 40 years and merges them into two redesigned forms:

 

The Loan Estimate – this combines and replaces the Good Faith Estimate and the Truth-in-Lending (TIL) statement.  The new form highlights the most important parts of the transaction and provides easy comparison of figures, such as estimated total monthly payment, estimated real estate taxes and estimated cash to close.

 

The Closing Disclosure – this combines and replaces the HUD-1 Settlement Statement and the final Truth-in-Lending statement (TIL).  This form mirrors the information in The Loan Estimate and must be provided to the consumer three business days prior to closing.  This gives the consumer plenty of time to review the information.  Previously, this information would often be provided on the day of closing or when the consumer was at the closing table, leaving no time for proper review.

 

These new forms are required for all consumer mortgages except Home Equity Lines of Credit (HELOC), reverse mortgages and mortgages for mobile homes not permanently attached to real property.  So if you are looking to purchase a home or refinance an existing home on or after October 3, 2015, you will want to familiarize yourself with the new disclosures and procedures to make sure your lender is applying the new process requirements to your transaction.  For more information you can visit the CFPB website at www.consumerfinance.gov.