Fall/Winter 2022

FAL L / WINT E R 2 02 2 I S S U E

THE

BEACON A CHAPTER OF THE COMMUNITY ASSOCIATIONS INSTITUTE (CAI)

Fall Maintenance Programs In order to determine what to include in the fall maintenance ‘extravaganza,’ as it was discussed in the previous article, it is important to look at the building as a series of systems, subsystems (which are major portions of the system), and components (which are typically individual parts of the system). This is simply a good practice to get into when thinking of buildings. For Fall and Winter; add freezing to the concerns.

In Washington, DC., at least historically, the worst weather has been during the fall and winter. A snowfall in DC in late February has the potential to be and has been a disaster.

Fall property maintenance activities are varied and may cover items not otherwise touched all year long, including, without regard to a particular property design or HVAC type, the following;

2022 DIAMOND SPONSORS Atlantic Maintenance Group, LLC Becht Engineering BT E&F Contracting, Inc. Hann & Hann Construction Services Kris Konstruction Roofing Professionals Mid-Atlantic Asphalt Minkoff Company, Inc. Pacific Premier Bank Palmer Brothers Painting & General Contracting Quest Insurance Risk Strategies Company RoofPro, LLC SageWater

2022 Annual Symposium and Expo Achieving Your Balance, Working Smarter, Not Harder

Winter Weather Preparation: • Roof maintenance: ■ Does the roof require a warranty maintenance inspection prior to each winter?

Some roofs within the warranty period require a roofing manufacturer representative to inspect the roof in order to maintain warranty.

■ Roof drains and overflow scuppers are in good condition.

• Site Parking lot and walkway maintenance, including: ■ Parking lot drains; working properly and located correctly. Are there areas of the parking that consistently freeze over?

■ Low spots and landscaping drainage onto walkways where it may present a freezing hazard.

Sahouri Insurance SI Restoration Simmerer Insurance The Falcon Group Tidewater Property Management, AAMC TRC Engineering Unlimited Restoration

2022 PLATINUM SPONSORS CIT Davis, Agnor, Rapaport & Skalny, LLC Nagle & Zaller, P.C. Quiza Management, LLC S&K Roofing, Siding & Windows, Inc. WPM Real Estate Management

Look inside for a list of Exhibitors, Photos, Sponsors and more from our 2022 Annual Symposium & Expo!

— See Page 10 — • Exterior lighting inspections and plans for parking lot lighting maintenance—it is much more expensive to repair/replace parking lot lighting when there is ice/ snow on the ground.

■ Residents will be in the parking areas much more frequently when lighting systems are on, and will notice lighting issues. continued on page 4

2022 GOLD SPONSORS Building Envelope Consultants and Scientists—BECS Condominium Venture, Inc., AAMC Connie Phillips Insurance FirstService Residential North Arundel Contracting Pro Painting & Contracting Truist Association Services USI Insurance Services Whiteford, Taylor & Preston LLP

CORRECTION FROM THE SUMMER/FALL ISSUE We apologize, Sahouri Insurance was not listed as a Diamond sponsor in our Summer/Fall issue as an error. We appreciate your support of the Chapter!

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In This Issue Fall Maintenance Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover President’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Diamond Sponsor Showcase—Quest Insurance . . . . . . . . . . . . . . . . . . 5 A Look Into the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Diamond Sponsor Showcase—Mid Atlantic Asphalt . . . . . . . . . . . . . . . 7

EXECUTIVE BOARD

President . . . . . . . . . . . . . . . . S usan Rapaport, Esq. Davis, Agnor, Rapaport & Skalny, LLC President-Elect . . . . . . . . . . . Rebecca Clemson-Petrik, CMCA, AMS, PCAM FirstService Residential Vice-President . . . . . . . . . . . . James Anderson, PE Becht Engineering BT, Inc Treasurer . . . . . . . . . . . . . . . . Vicki Eaton, CMCA, AMS, LSM, PCAM Community Association Services, Inc., AAMC Secretary . . . . . . . . . . . . . . . . Gail Windisch, CMCA, AMS, PCAM Tidewater Property Management, Inc. AAMC

DIRECTORS

Diamond Sponsor Showcase—Kris Konstruction . . . . . . . . . . . . . . . . . 8

Cynthia McKoin, Potomac Ridge Condominium, Inc. Kelly Rae, RoofPro, LLC Steve Randol, Piney Orchard Community Association Gary Saylor, Atlantic Maintenance Group

Diversity, Equity, and Inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2022 Annual Symposium and Expo . . . . . . . . . . . . . . . . . . . . . . . . . 10 Platinum Sponsor Showcase—Risk Strategies Company . . . . . . . . . . 14

Social

COMMITTEE CHAIRS

The Importance of Finding and Vetting the Ideal Candidate . . . . . . . 15 Many Thanks to our 2022 Breakfast Webinar/Seminar Sponsors! . . 18 Confessions of a Control Freak . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

DelMarva

Chad Toms, Chair Whiteford, Taylor & Preston, LLP Lisa Meck, CMCA, AMS, Vice-Chair Carl M. Freeman Companies

Education

Noni Roan, CMCA, Chair Pinnacle Financial Partners Christa Brady, AMS, PCAM USI Insurance Services

EXPO

Ellen Throop, Chair Davis, Agnor, Rapaport & Skalny, LLC Joanne Frallicciardi, CMCA, AMS, Vice-Chair Community Association Management, LLC, AAMC

Golf

Scott Karam, Chair Kris Konstruction Roofing Professionals Kara Permisohn, Vice-Chair Minkoff Company, Inc.

Legislative

Cynthia Hitt Kent, Chair Law Office of Cynthia Hitt Kent, LLC Karen Fooks, CMCA, AMS, Vice-Chair Community Management Corporation

Membership

Ron Bridge, Chair Risk Strategies Company Jennifer Melson, CMCA, AMS, Vice-Chair Premier Property Management

Newsletter

Michelle Baldry, Chair Reserve Advisors Sami Satouri, Vice-Chair Quest Insurance

Communication

Alicia Menefee, CMCA, Chair HPS Management Jennifer Melson, CMCA, AMS, Vice-Chair Premier Property Management

Business Partner Advisory

Austin Haspert, Chair E&F Contracting, Inc. Jason Kingan Atlantic Maintenance Group

Diamond Sponsor Showcase—TRC Engineering . . . . . . . . . . . . . . . . . 22 2022 Delmarva Expo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Welcome New Members! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Platinum Sponsor Showcase—WPM Real Estate Management . . . . . 28 Effects of Inflation on Contracted Services— What Can You Expect? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Get Social With Us! Be sure to like and share our chapter posts on Facebook and LinkedIn and follow along by using the chapter’s hashtag: #CAICRC

CAI CHESAPEAKE REGION CHAPTER Richard Coppage, Executive Director Angela Marsh, Marketing and Events Manager Christina Killian, Office Administrator PO Box 6838, Columbia, MD 21045 Office Line: 410-348-1534 Membership Line: 410-505-8746 Office Email: contact@caimdches.org Membership Email: membership@caimdches.org Website: www.caimdches.org This publication attempts to provide CAI’s membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all presented facts in articles.

CAI does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. This publication is issued with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Permission to reprint articles in Beacon may be granted only after receiving prior written approval from the CED of CRC/CAI.

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Dani Bressler, Chair Toepfer Construction Co., Inc. Carrie Ehart, Vice-Chair Raine & Son, LLC

President’s Message Dear Members, With the end of the year upon us, my term as President is nearing completion. At the beginning of the year, I challenged all of us to “take this Chapter to the next level.” As I reflect back on our accomplishments over this past year, I believe that we have achieved this goal.

As a Chapter, we raised the breadth and depth of our programming and expanded the number of events, including those held on the Eastern Shore. The Chapter hosted many top-notch educational programs, including our manager breakfasts, the Delmarva breakfast, the homeowner webinars, the new manager lunch and learn series, the Chapter Expo and the Delmarva Expo. We also produced a couple of podcasts to disseminate information on hot topics impacting our industry in a timely manner. We held several sold-out social events, including 2 golf tournaments, a crab feast and the Guinness outings at which we had the opportunity to network in an informal setting.

Finally, through the work of the Chapter’s Legislative Committee and the Maryland Legislative Action Committee, we have advocated at the State and local levels on legislative matters impacting common ownership communities and the various interest groups that comprise our industry.

all of you who have done so much this year for the Chapter. I would also like to recognize the work of all the prior boards and committees whose contributions grew this Chapter to the 1,264 members that we are today.

In my first President’s message at the beginning of the year, I noted that a business cannot rest on its laurels, but must be strategic and forward thinking. In order to do so, it must have new ideas and set new goals. This can only be achieved by getting more members involved in the Chapter. If you have not joined a committee, I encourage you to do so. Not only will it enrich your experience, but it will provide the Chapter with its next group of leaders who will take this Chapter to yet the next level.

Our first event in 2023 is Charting Your Course, which is an opportunity to hear from all of the Chapter’s Committee Chairs and Vice Chairs and learn how you can get involved or more involved with the Chapter. Mark your calendars for January 18, 2023 from 9:00 AM to 10:00 AM for this Zoom event.

Here’s to a happy and healthy holiday season.

None of this would have been possible without the tireless efforts of the Chapter staff, the Board, the Committee Chairs and Vice Chairs and our committee members. My sincerest thanks and gratitude to

All the best, Susan Rapaport, Esq., Partner Davis, Agnor, Rapaport & Skalny, LLC Chesapeake Region Chapter President

Check out our website for our 2023 Sponsorship Opportunities!

2023

2023

2023

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continued from cover page

The Site’s overall Annual Schedule can and should include ‘pre-event’ (I.E., impending major storm) inspection processes:

• Emergency generator load bank testing, typically annually, but conducted in the fall.

• Site Major Storm/Weather Event preparation: Fall is a good time to review what is expected from all team members for heavy rain and/or snow. Heavy rain/snow don’t always happen between 8–5 Monday to Friday. Don’t forget setting priority for snow/ice storm sidewalk/parking clearing/treatment; for those periods when staffing is low for any reason.

• If the site has no emergency generator, then emergency battery lighting systems (battery pack lights) need inspections. Is the Site’s inventory of battery lighting systems up to date? Are there areas that need battery lights installed? Are there spare unit(s) on site.

• Site Snow Removal: If on-site staff has a role, as most do, even if it is only to the extent of de-icing agent spreading, then is everyone clear on their requirements? If contracted out, are call lists and contract provisions clear to all team members?

■ In-house equipment in good condition. Appropriate stocks of de-icer on site.

■ Snow removal contract should include specific language on where to pile snow. If the lot slopes and snow is plowed/piled ‘uphill’, you will have an ice mess each and every morning. If you need to have the snow transported off-site, this is a good time to decide— February is not the time.

■ Handicapped parking needs to be cleared and the associated ramp/access paths cleaned and de-iced—this is a famous one for ‘that’s not in my contract!’

Fire/Life Safety Systems and associated subsystems and components; to prevent freezing in the winter months.

• Primarily directed to wet and dry pipe sprinkler systems

Central Plant Systems have specific requirements; these should be addressed with the Contractor/Maintenance Staff, however major items include: • Cooling System winter shutdown/maintenance activities: ■ Cooling Tower maintenance and cleaning (most properties put this off until the spring; however, leaving the dirt and debris in the tower all winter long causes the cooling tower (basin in particular) surfaces to deteriorate, as they stay wet under the dirt.)

• Chiller tube punching (same statement and concern as noted above about cooling towers) • Heating System and associated subsystems and components ■ Remember insurance and local code authority required inspections ■ If your maintenance contract does not specifically include boiler system efficiency testing, then it should and the results should be reported in writing to you, the property manager.

In properties where individual unit HVAC is the norm; there are typically common area systems that need to be inspected/ maintained prior to winter operations. These include:

■ Dry pipe inspections should include identifying and testing each and every standpipe drain, and setting a schedule for weekly inspections. This should be typically coordinated with the Fire Alarm/Fire Sprinkler system maintenance contractor and should include refresher training on dry pipe fire sprinkler system operations.

• Common area HVAC systems heating systems, such as:

■ Do not forget stairwell and storage unit heaters, in areas serviced by wet and dry pipe fire sprinklers.

• In properties with exterior pools; proper freeze protection of pool house plumbing systems as well as pool fittings and equipment is required.

■ This is a good time for fire extinguisher inventory and annual testing.

■ Electric heating elements in individual common area HVAC systems such as lobby and hallway systems ■ Natural gas heating systems in roof top units for community rooms/centers.

Written by Robert Kroohs, TRC Engineering 301-869-6446 ekirk@trc-engineering.com

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QUEST INSURANCE

DIAMOND SPONSOR SHOWCASE 2022

WHO ARE WE? It has been a great year for Quest Insurance, reaching a significant milestone by celebra�ng its 30th Anniversary on September 21, 2022. Addi�onally, Quest Insurance is pleased to announce it has joined the AssuredPartners, Inc. family of agencies, providing addi�onal assets and resources which will only strengthen our commitment to our clients and business partners.

Quest Insurance has been providing personalized insurance solu�ons to homeowners’ associa�ons, condominiums and other planned communi�es, their staff and their vendors in the Washington, DC metro area for 30 years. The staff members at Quest Insurance with a combined 150 years of exper�se - keep up with the current threats impac�ng the industry and share best prac�ces, methods and product that will mi�gate those risks, and ensuring the clients have the safeguards in place.

Equally important for this industry is the hiring and reten�on of qualified employees. This is another area where Quest Insurance can assist you by working with you to design a comprehensive and affordable benefits package that will keep your organiza�on compe��ve and will assist you in retaining your qualified employees for the long haul.

www.questinsurance.us

4433 BROOKFIELD CORPORATE DRIVE | SUITE A | CHANTILLY, VIRGINIA 20151 | 703.961.8886 AssuredPartners, Inc. is headquartered in Florida and is a full-service insurance broker providing commercial insurance, risk management, employee benefits through consul�ng and services. It has offices throughout North America, London, Belgium and Scotland with over 7,500 employees.

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A Look Into the Future Thank you to everyone for the warm welcomes and for your patience during my transition into the role of Executive Director for the Chesapeake Region Chapter of Community Associations Institute. In my brief time here, I have come to understand why this chapter stands head and shoulders above the rest. It is truly the example of what good membership can look like in organizations like ours. This example of good membership can only be made possible under the leadership of a dynamic Board of Directors. A Board of Directors who is spearheading the evolution of the chapter into the future. An exciting reason to continue your membership with the chapter as we journey together into 2023.

Come next year, you as members will have elected three directors to fill the open seats on the board, thus making a choice in those that you want to represent you as a member and what you value in this organization. The current President, Susan Rapaport, Esq., has worked effortlessly to inspire the idea

of taking things to the next level, which has served as guidance to the next President.

Rebecca Clemson-Petrik, CMCA, AMS, PCAM, as President-Elect has found the idea to be the perfect way to go bigger in her term as President. So, get ready to be a part of something great to come.

The chapter will continue to bring educational opportunities to its members to further their knowledge of the homeowner world.

Next year the mission will be to bring more advanced educational courses to assist in achieving and retaining PCAM level credentials. The Education Committee is focused on crafting an outline for the success of this mission and the best content that will excite your curiosity. In developing a successful offering of courses, the committee depended on the survey preferences you had towards certain subject matters. They are thrilled to bring you well-rounded and resourceful materials to deliver a diverse knowledge base in your development as a professional.

As a chapter committed to building better communities, we will continue to strive to adopt a perspective to enhance diversity, equity, inclusion, and belonging. This effort is to go beyond just the workplace and explore practices that can better homeowner communities. In addition, this will be reflected in the makeup of our membership as we continue to grow to new achievements as a Very Large Chapter in CAI. The growth of the chapter this year has surpassed 1,250 members and will continue to grow as we head into next year. The hope is that all members continue to invite prospective members to join the CAI family.

Furthering member engagement will be complemented by events and activities to keep members motivated throughout the year. We all understand that as we work hard, we must have fun along the way. Next year we will have an amazing time as we take on new themes and try new experiences as we network together. Your feedback has given chapter leadership the tools they need to design a calendar of events that offers the best path for your membership. By providing us with your participation, you help the ideas of our committees become a reality. No matter if it is the Crab Feast, Gala, or the Annual Symposium and Expo, our committees want you to enjoy the benefits of your membership. They hope to do this by improving your familiar experiences and attempting to bring innovative ideas. Do not miss the excitement that 2023 will bring and the achievements we can make together as the Chesapeake Region Chapter of Community Associations Institute.

Written by Richard Coppage Chapter Executive Director

2022 PROFESSIONAL MANAGEMENT DEVELOPMENT PROGRAM (PMDP) For more information and to view the list of courses offered in 2022, visit Education for Managers (caionline.org) 6

MID ATLANTIC ASPHALT DIAMOND SPONSOR SHOWCASE 2022

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KRIS KONSTRUCTION DIAMOND SPONSOR SHOWCASE 2022

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Diversity, Equity, and Inclusion You may have heard the phrase, Diversity, Equity, and Inclusion (DEI), in the news, on social media, or in conversations with friends or colleagues. Have you ever wondered what that term meant? Do you wonder why it is a larger conversation now than it’s ever been before?

According to MIT, Diversity, Equity, and Inclusion are defined as follows: • Diversity—the sum of social, cultural, and identity-based human attributes represented within a group.

• Equity—access to opportunity and advancement for all members of a group. These environments are free from discrimination, harassment, and bias.

• Inclusion—the act of creating environments in which all members of a group are welcomed, respected, supported, and valued.

ADOPTED BY CAI BOARD OF TRUSTEES ON AUGUST 18, 2021 Community Associations Institute is committed to making diversity, equity, and inclusion a core aspect in our membership, on our staffs, and within the community association housing model at large. We firmly believe in the unique strengths of every individual and that diversity makes organizations more successful and communities more fulfilling. By actively cultivating diversity, we benefit from a vastly richer mix of ideas, perspectives, and life experiences that expand our thinking and our possibilities. We strive to foster a culture of discovery, innovation, and service as we continue to focus on our mission to build better communities.

Racial injustice and inequality have become a much wider story over the last several years, shedding a renewed light on the need for DEI in our workplaces and communities. For these programs to succeed, it is important everyone understands the benefits that come from differing views and perspectives, as well as the advantages that come when everyone feels included, heard, understood, and valued.

The Foundation for Community Association Research set out in late 2020 to investigate the extent of discrimination claims in community associations, test a hypothesis that communities with robust communications and active social events calendars would have fewer problems, and create a baseline from which diversity, discrimination, and communications in our communities could be measured.

Nearly 700 community association managers and more than 300 community association residents were surveyed separately and asked about attitudes, practices, and experiences with regard to diversity and discrimination issues, how any issues have been resolved, and recommended practices for reducing issues in community associations.* They created this report: Creating Harmony in Diverse Communities In 2021, Community Associations Institute made a pledge to include DEI in all aspects of their business, as stated on their website: https://www.caionline.org/AboutCAI/Pages/DEI-Statement.aspx

Beginning in our next issue of The Beacon, we will be dedicating a page to DEI, including but not limited to facts, links, and articles of value, which should help in understanding diverse cultures, ethnicities, and religions.

Written by Dani Bressler, CAS, EBP, Toepfer Construction Co., Inc dbressler@toepferco.com & Elisabeth Kirk, TRC Engineering, EBP ekirk@trc-engineering.com

*Resources: https://hr.mit.edu/sites/default/files/dei-definitions.pdf

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2022 Annual Symposium and Expo Achieving Your Balance, Working Smarter, Not Harder

Many Thanks to Our Expo Sponsors!

GROCERY TOTE

Atlantic Maintenance Group BEVERAGE CUP Residential Realty Group, Inc. SERVER APRONS Davis, Agnor, Rapaport & Skalny ONSITE HANDOUT CAMP—Community Association Management Professionals Quiza Management The Southern Company CASH PRIZE DRAWINGS National Cooperative Bank Vote HOA Now

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PASSPORT Atlantic Maintenance Group Architectural Support Group Associa®—CMC, SCS, and Legum & Norman SBC Outdoor Services Minkoff Company Residential Realty Group, Inc. SecureCore Pinnacle Financial Partners WRAP PARTY Community Association Underwriters of America

Many Thanks to our Exhibitors!

Access Granted Systems All Recreation Alliance Association Bank Allsafe Elevator Inspections Appfolio, Inc. Aquasafe Pool Management Architectureal Support Group Associa®—CMC, SCS, and Legum & Norman Atlantic Maintenance Group Becht Engineering BT BYLT Restoration CIT, a Division of First Citizens Bank City Clean, Inc. Columbia Roofing Community Association Underwriters of America Connie Phillips Insurance Construction Systems Group Contracting Specialists, Inc. CoreCom Commercial Painting DRD Pool Management E&F Contracting, Inc. Ecotek Soft Wash ePIPE® Pipe Restoration Fireline Corporation FirstService Residential, AAMC Four Twelve Roofing GAF Roofing Material Manufacturer GMC Contractors, Inc. Gordian Staffing Hann & Hann Construction Services, Inc. Knott Mechanical Kris Konstruction Roofing Professionals Level Green Landscaping Mid-Atlantic Asphalt Minkoff Company, Inc. Mr. Clean Power Washing Multicorp, Inc.

Nagle & Zaller, PC Nania Energy Advisors National Cooperative Bank North Arundel Contracting Pacific Western Bank Palmer Brothers Painting & General Contracting, Inc. Paul Davis Restoration of Greater Baltimore Pinnacle Financial Partners Plannned Companies Playground Patrol, LLC PoolEntry, Inc. Precision Concrete Cutting of DE & MD Pro Painting & Contracting PTG Enterprises Quest Insurance Rees Broome, PC Reserve Advisors Residential Realty Group Realty, Inc. AAMC Risk Strategies Company RoofPro, LLC Ruppert Landscape S&K Roofing Siding & Windows, Inc. SageWater Sahouri Insurance SBC Outdoor Services SecureCore SI Restoration Structural Rehabilitation Group The Falcon Group The Witmer Group Tidewater Property Management, Inc., AAMC Toepfer Construction Co., Inc. TRC Engineering Trestle Management Group Tri State Restorations, LLC Triple R Roofing Truist Association Services

Unlimited Restoration, Inc. USI Insurance Services Vantaca Vote HOA now VPS Recreation Walker Consultants Walter Electric WINTRUST Community Advantage, Your Association Banking Partner

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Many Thanks to our 2022 Expo Committee!

Ellen Throop, Davis, Agnor, Rapaport & Skalny, Chair Joanne Frallicciardi, CMCA, AMS, Community Association Management, LLC, AAMC, Vice-Chair Vicki Eaton, CMCA, AMS, LSM, PCAM, Community Association Services, Inc., Board Liaison Beth Bencivenni, SecureCore Ursula Koenig Burgess, CCAL, Rees Broome, PC Michael Romano, Community Association Underwriters of America, Inc. Matt Mericle, CMCA, AMS, Condominium Venture, Inc., AAMC Kelly Rae, RoofPro Gary Saylor, Atlantic Maintenance Group Christy Stevens, CMCA, AMS, PCAM, Wallace H. Campbell & Co., Inc. B.K. Swartwood, CMCA, AMS, PCAM, Forestar Group, Inc.

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Many Thanks to our Expo Speakers!

KEYNOTE PRESENTATION “Achieving Your Balance, Working Smarter, Not Harder” Speaker: Sonsy Gaba, Mother of Mo Gaba Interviewed by: Kirk McEwen, Popular host of 98 Rock’s show “Kirk & Marianne” & Baltimore Ravens sideline reporter.

Moderated by: Gary Saylor, Atlantic Maintenance Group BREAKOUT CONCURRENT SESSIONS: 1. “2022 Maryland Legislative Update” Presented by the MD Legislative Action Committee: •

Tommy Tompsett, Jr., Associate/Attorney at Law, Harris, Jones & Malone

•

Kathleen Elmore, Esq. Managing Partner, Elmore Law Group, P.C.

•

Scott Silverman, Partner, Thomas Schild Law Group

•

Cynthia Hitt Kent, Esq., Law Office of Cynthia Hitt Kent

2. “Thomas Jefferson’s 10 Rules of Life for Community Association Managers and Volunteer Leaders” Presented by: Thomas L. Willis, PCAM, Community association industry leader, consultant, speaker & President of Association Bridge, LLC 3. “24 Hours of Well-Being” Presented by: Jerry Frentsos, Author of Live Intentionally Well, educator, clinician, coach & athlete

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olio,

RISK STRATEGIES COMPANY PLATINUM SPONSOR SHOWCASE 2022

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Ronald Bridge | Vice President, Producer M: 301-466-6454 | E: rbridge@risk-strategies.com Jeff Duce | Vice President, Producer M: 301-452-5339 | E: jduce@risk-strategies.com

The Importance of Finding and Vetting the Ideal Candidate When we look back over the past couple years, we will be reminded of the voluntary walkout of the American workforce. It was unbelievable that so many people could and would simply walk away from their jobs. This “great resignation” was truly a unique occurrence, but employment has historically been affected by various factors including: demand in the service sector, exodus of qualified workforce, early retirement and recently, Covid-19. Although the walkout was alarming at the time, employment is cyclical by nature and it is estimated that people will again return to the workforce.

• Employees are also looking for flexibility in the form of both strong, paid-time-off incentives as well as options for remote work or flexible scheduling.

The Importance of Employee Benefits to Attracting and Retaining Employees

Finding and Vetting the Ideal Candidate

It was reported by the U.S. Bureau of Labor Statistics that over 47 million Americans voluntarily quit their jobs in 2021. This unprecedented activity is often referred to as the Great Resignation. Although Covid-19 is often identified as the root cause for this unique happening, there are many other factors that contributed to this mass departure from the workforce. Covid-19 simply provided more “focused” time for the workforce to consider what is important to them. One of the key factors weighed by individuals as they consider re-entering the workforce is employee benefits and how such packages will positively improve their work-life balance. It is more important than ever that employers invest their time and resources in making their employees aware of available employee benefits and pilot awareness to increase participation! Why is this important and what are prospective employees searching for in their next employment experience?

• It’s an employees’ market, and to engage top talent, employers need to differentiate themselves more than ever. It’s no longer enough for an employer to have an available position for which the employee is qualified and interested. Prospective employees are looking for the total package, with benefits playing a critical part. Employees want to feel valued, and offers are based on more than just the job offer itself.

• First and foremost, employees want to feel secure that they will be covered when an issue arises. A comprehensive and affordable health benefit plan, with the ability to save and plan through an HSA/FSA is critical. Wellness incentives are also a great addition.

• 401(k) and other assisted retirement savings vehicles are also important, particularly with a matching element if the company is able.

• If you’re not sure where to start, engage a benefit broker who can negotiate a strong package on the employer’s behalf and alleviate the burden of finding the best plans!

According to different research and publications, it takes an average of $4,000 and 24 days to hire a new employee. However, that will vary depending on ad placement costs, job level and whether or not you have to pay to train new employees. Selecting, developing, and retaining the right people for your organization are of the utmost importance for continued and sustainable growth. The widely recognized industry formula for understanding the cost of employee turnover is one-and-a-half times the annual compensation of the position. Even for a small company this expense can result in a loss of tens of thousands of dollars to the bottom line. Hence, the importance of having solid hiring processes that steer selecting, developing, and retaining just the right people who will enjoy a long-term and productive career in a growing and highly successful organization.

Effective hiring processes include several important elements: ✔ Provide effective marketing and post positions on a variety of avenues: ✔ Indeed, Craigslist, Monster, ZipRecruiter, etc. ✔ Research and reach out to organizations/associations that may provide leads for potential candidates. ✔ Post on Facebook, LinkedIn, and other social media platforms. ✔ Initial vetting of candidates utilizing the following criteria: ✔ Resume and/or application ✔ Initial telephone questionnaire ✔ LinkedIn/Social Media profile

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✔ Continue vetting qualified candidates through in-person or Zoom interviews (behavioral and experiential). ✔ Provide final candidates with assessments, such as the Caliper Assessment, Everything DiSC Workplace® and/or Wiley PXT Select. ✔ Check references for validation and/or discrepancies. ✔ Provide an on-boarding letter to selected candidate. ✔ Create an on-boarding schedule and checklist. ✔ Perform a 30-day check-in interview with new employee.

Fully vetting a prospective employee is essential for an organization to be successful in on-boarding the right applicant. Vetting will allow the employer to delve deeper into a potential employee’s background and even their personality, much more than simply reviewing a resume or conducting an interview. Through proper vetting an employer can identify the skills, traits and aspirations that will make a candidate a perfect fit for their organization.

It is critical that you look at the hiring process from both sides, as the employing organization and as the prospective employee. You, as the employer, want to find the ideal employee who brings to the table all the attributes you seek for a successful placement. The candidate wants to land the perfect job—one that responds to their professional and in some respects, personal needs. You both want to “check all the boxes.” Take the time needed to seek and identify the perfect candidate and review your benefits package regularly to ensure you are offering the desired products so that your organization can be competitive in today’s job market.

On the other hand, employers must be careful not to provide too rich of a benefit package to a point where the cost of those perks outweigh the benefits. It’s more difficult to take away benefits than to add them; once staff is used to a certain benefit package, it could be detrimental to take it away or charge the employee for it. A balancing act is in play.

SOURCES: Historical Employment Data (unemploymentdata.com) Employee Vetting Process: The Official Guide (huntclub.com) The Great Resignation Didn’t Start with the Pandemic (hbr.org)

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Some Facts to Consider • Employees are leaving their jobs in record numbers • 70% of Americans rank healthcare coverage as the most important benefit—above salary—when thinking of switching jobs

Competitive salary is a close second • More job opportunities than new hires by almost 2x • 44% of employees who voluntarily left their jobs said they will not return to traditional employment for at least the next 6 months

Competitive salary is a close second SOURCE: “Benefits that Drive Retention” by Kelli Hemstock, Regional Sales Director, East Lively

Written by Sami Satouri, RHU®, ChHC®, Quest Insurance Kay D. Congdon, Marked by Excellence, LLC Jessica Wilson, Partner, JKW Advisory Services

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Many Thanks to our 2022 Breakfast Webinar/ Seminar Sponsors!

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Precision Concrete Cutting of MD & DE Pro Painting & Contracting Quest Insurance Rees Broome, PC RoofPro SageWater SI Restoration The Falcon Group TRC Engineering Tri State Restorations, LLC Walker Consultants WINTRUST Community Advantage, Your Association Banking Partner

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The Beacon Newsletter is moving to a Magazine in 2023!

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BETTER COVERAGE. BETTER OPTIONS. America’s community association insurance partner is upping its game Community Association Underwriters of America (CAU) has joined forces with Munich Reinsurance America, Inc. (Munich Re, US) to deliver an even higher level of strength and sophistication to America’s community associations.

Our solutions are custom-built by industry specialists to address the unique risks facing community associations, and now feature some powerful new options.

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GET TO KNOW CAU Community Association Underwriters of America (CAU) is a managing general agency and national leader in community association insurance and risk management. Founded in 1989, CAU services community associations, residential and office condominiums, cooperative apartments, and homeowners associations. CAU is based in Newtown, PA and offers property, casualty, fidelity, D&O, general liability, and ancillary products to a nationwide client base.

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Coverage you can count on Policies will be issued using A+ A.M. Best-rated primary insurance companies affiliated with Munich Re, US.

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Michael Romano, CIRMS, CPIA Marketing Specialist D 267 757 7169 MRomano@cauinsure.com

Confessions of a Control Freak

I am a self-proclaimed control freak. I have taken over projects because I couldn’t bear watching someone else struggle through it. I have detailed spreadsheets with our vacation plans and won’t let my husband modify them. I routinely volunteer to ensure that things are done the way I would like them done. I like the control.

When I was an angsty teenager, my dad told me not to stress about things I couldn’t control. It was great advice. I mean, do you find yourself telling your friends, “I can’t believe the beltway speed limit is only 55 miles per hour, I mean, that’s ridiculous. Do you know how much time I spent today being stressed about getting back on the beltway tonight to go home knowing I can’t exceed 55 miles per hour?” No. Why? Because we can’t change or control the speed limit—you might stress about being late for something because you left your house later than expected and can’t drive 100 miles per hour—but that’s not the same. The speed limit is what it is and there’s nothing you can do about that. And you are likely smiling and nodding your head, but I am willing to bet that you are actually spending time stressing on items that you cannot control and I want you to stop doing that.

It’s a fairly simple process. Find some time for yourself with no distractions and grab some paper. Write down everything that is stressing you out. Everything. When I do this, it always turns into a stream of consciousness for me, punctuated by a few a-ha moments when I pinpoint a stressor perfectly.

After the brain dump, get another piece of paper and on one side, list all of the stressors that you can control/change (the “Control List”).

On the other side, list the ones you can’t control (the “No Control List”). Be very honest with yourself—many times we perceive that

there is something in our life that we can’t control, when in reality we can. This exercise alone may open your eyes to the fact that there are stressors in your life that you can control and that should alleviate some of your stress immediately.

So, what’s on the No Control List? There may be some items on there like the health or safety of a loved one—items that you can’t control but which deserve your attention and concern. This is where the practical advice can be helpful, like getting enough sleep, exercising, etc, because you do need to protect your mental health under those circumstances.

However, you should immediately stop stressing about everything else on the list. Are you stressed that a gift you ordered is back-ordered and won’t be here in time for the recipient’s birthday? Stop it. The recipient will appreciate the gift, regardless of the date they receive it. Are you worried about how a vote will come out at an election? Quit it. You can’t control what everyone is going to do and how they are going to vote, so stop using up your mental resources on it.

You have a second list that deserves and needs your attention—the Control List. This list is a proverbial slap in the face telling you that there are things in your life that you can change for the better and that’s not going to be easy. You need all of your mental faculties to assist you in reviewing that list and changing stressors in your life— don’t give them to the No Control List.

If a control freak can let go, so can you.

Written by Ursula Burgess, Shareholder, Rees Broome, PC Uburgess@reesbroome.com

Law Office of Cynthia Hitt Kent, LLC A Baltimore area law firm engaging in the practice of general and real estate related representation for Community Associations, Developers, Small Businesses and Individuals.

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TRC ENGINEERING

DIAMOND SPONSOR SHOWCASE 2022

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Many Thanks to our Delmarva Exhibitors, Sponsors, Committee Members and Speakers for putting on a great Expo on Friday, November 11th on Rentals: The Great Debate!

Many Thanks to our Delmarva Sponsors!

Architectural Support Group Atlantic Maintenance Group BrightView Landscapes CIT Bank, a Division of First Citizens Bank Davis, Agnor, Rapaport & Skalny Hann & Hann Construction Services Kris Konstruction Roofing Professionals Truist Association Services

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Many Thanks to our Delmarva Exhibitors!

Alliance Association Bank Allsafe Elevator Inspections Architectural Support Group, LLC Ark Systems Atlantic Maintenance Group CIT, a Division of First Citizens Bank Constructions Systems Group Criterium-Harbor Engineers Deeley Insurance Group DMA Reserves, Inc. FirstService Residential G Fedale Roofing & Siding Hann & Hann Construction Services Kris Konstruction Roofing Professionals Legum & Norman/Associa OnCall NFP Property & Casualty PoolEntry, Inc. Precision Concrete Cutting of MD & DE Reserve Advisors Residential Realty Group Risk Strategies Company RoofPro Standard Pipe Services The Witmer Group Tidewater Property Management, Inc. Trestle Management Group Truist Association Services USI Insurance Services Whiteford, Taylor & Preston

Many Thanks to our Delmarva Committee!

Chad Toms, Chair, Whiteford, Taylor & Preston, LLP, Chair Lisa Meck, Co-Chair, Carl M. Freeman Companies, Vice Chair Gary Saylor, Atlantic Maintenance Group, Board Liaison Igor Conev, OC Mann Properties Melissa Esham, Deeley Insurance Karen Fooks, Community Management Corporation Tina Hayman, FirstService Residential Tara Laing, Community Manager 24

Tim Larsen, Oliveri & Larsen Jennifer Melson, Premier Property Management Stefanie Minemier, Community Association Services Michele Nadeau, The Gateway Grand Condominium Noni Roan, Pinnacle Financial Partners Gary Saylor, Atlantic Maintenance Group B.K. Swartwood, Forestar Ellen Throop, Davis, Agnor, Rapaport & Skalny Trish Walsh, NFP Property & Casualty Services Gail Windisch, Tidewater Property Management

Many Thanks to our Delmarva Expo Speakers & Moderators Chad Toms, Partner at Whiteford, Taylor & Preston Tara Laing, Community Manager Ellen Throop, Partner at Davis, Agnor, Rapaport & Skalny Stephen Kaganzev, CMCA®, AMS®, PCAM®, Regional Manager at FirstService Residential Graham Thomas, Senior General Manager at Rentals at Vacasa Michele Nadeau, CMCA®, AMS®, General Manager at The Gateway Grand Condominium B.K. Swartwood, , CMCA®, AMS®, PCAM, HOA Manager at Forestar Mid-Atlantic Division— MD, VA, WV, DE, NJ, PA

Igor Conev, CMCA, AMS, PCAM, CIRMS, CEO at Mann Properties, Inc. Jennifer Melson, CMCA, AMS, Regional Portfolio Community Manager at Premier Property Management Melissa Esham, PCAM, CMCA, AMS, Community Association Advisor at Deeley Insurance Noni Roan, CMCA, Financial Advisor, Pinnacle Financial Partners Paul Soule, Mortgage Advisor, Guaranteed Rate Affinity

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Welcome New Members!

New Chapter Members: July–September, 2022

Ms. Nakeshia Adams Tidewater Property Management

Mr. Bill Coran Montego Bay Civic Association

Ms. Melanie Hammond Professional Community Management

Ms. Cathy Adelman The Cove Creek Club

Ms. Coriatha Crawley Community Association Management, LLC

Ms. Sandra Hartzell

Ms. Ajee Alexander Quality 1 Property Management

Mr. Tom Cullop Thomasville Restoration

Ms. Paula Amaker Swan Point at Lake Elkhorn

Mr. Richard Dean The Council of Unit Owners of Kingsgate Condominium, Inc.

Mr. Rober Arensmeyer Penthouse Condominium Ms. Betty Belarin Montego Bay Civic Association

Ms. Brittany Doster

Mr. Robert Kaplan The Greens II at Leisure World

Mr. John Blackwell South River Colony Conservancy

Ms. Sheila Elliott Community Association Management, LLC

Mr. Kenneth Boehl

Mr. Walter Elmore

Ms. Hayley Bortz The Towers Condominium, Inc.

Mr. Joseph Eppich Windsor Knolls Homeowners Association, Inc.

Mr. Jay Bosanko The Cove Creek Club

Ms. Lisa Fields Community Management Corporation

Ms. Stacey Bradshaw Villages of Savannah HOA

Mr. Sam Frank Four Twelve Roofing

Ms. Taia Burns Potomac Valley Management Company, LLC

Ms. Anna Galia Villages of Savannah HOA

Ms. Lynette Cameron Villages of Savannah HOA

Mrs. Emily Gerrits Windsor Knolls Homeowners Association, Inc.

Ms. Nancy Carlin White Flint Station Condominium

Mrs. Diane Haislip Fallston Commons Homeowners Association, Inc.

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Mr. Joshua Humbert Villages of Savannah HOA Mr. Dennis Jackson Village at Collington

Mr. Larry Birch Shearwater Condominium Association

Mr. Frank Comito The Gatherings at Jefferson Place Condominium Association

Ms. Miriam Hirsch The Towers Condominium, Inc.

Kelly Derthick South River Colony Conservancy Teonna Douglas Residential Realty Group, Inc.

Mr. Louise Cobbs Bay Crossing Homeowners Association Inc.

Mr. Howard Henry Pinnacle Financial Partners

Ms. Diane Hall Professional Community Management Ms. Cheri Hall Shearwater Condominium Association

Mr. Brett Kazandjian Windsor Knolls Homeowners Association, Inc. Ms. Denise King Mr. Harry Kozlovsky The Towers Condominium, Inc. Mrs. Anina LaCour Shearwater Condominium Association Mr. Mike LaFortune Shearwater Condominium Association Mr. Jordan MacWha Hawkins Electric Service, Inc. Mr. Steve Maxwell Shearwater Condominium Association Mr. Allan May Windsor Knolls Homeowners Association, Inc. Ms. Robyn McCullough Chestnut Hill Condominium, Inc. Mr. James Mitchell The Cove Creek Club Mrs. Sandy Mulcahy Windsor Knolls Homeowners Association, Inc.

Ms. Susan Musman The Towers Condominium, Inc.

Mr. Sid Schwarzenberger The Towers Condominium, Inc.

Mr. Anthony Trintis Chesapeake Property Services

Mr. Adam Nagy Access Granted Systems

Mr. Terry Simonette Silo Point Condominium

Mr. Jim Twigg Shearwater Condominium Association

Mr. Dennis Odie Penthouse Condominium

Ms. Cathi Sleight Vote HOA Now

Mr. Nick Oliver Professional Community Management

Mr. Tom Spiegel Shearwater Condominium Association

Ms. Ruth Upright The Gatherings at Jefferson Place Condominium Association

Mr. Barry Oslick Fallston Commons Homeowners Association, Inc.

Bla Stanicic Stanicic Tidewater II Garden Condominium Association

Ms. Sharon Perry Quality 1 Property Management

Mr. Daniel Steele City Clean Incorporated

Ms. Kiersten Ritter

Ms. Rachel Stuck Quality 1 Property Management

Mr. Francis Ruggiero Longacre Village HOA, Inc. Aichatte Samassi Comsource Management, Inc. Ms. Candy Schimming The Greens II at Leisure World

Mrs. Amy Switzer Pelican Property Management Mr. Kevin Tracy The Cove Creek Club

Ms. Margaret Victor Mr. Bob Waltersdorff Mallard Landing Council of Unit Owners Ms. Mary Weaver South River Colony Conservancy Mr. Wilson White Mallard Landing Council of Unit Owners Ms. Amy Witcover-Sanford Middlesex Beach Association Mr. Christopher Ziesat Tidewater Property Management AvidXchange

Connie Phillips Insurance CONDOMINIUM & HOMEOWNERS ASSOCIATION INSURANCE CONSULTANT As an Independent Insurance Agency, CPI has unlimited access to the major carriers for Condo coverages.

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WPM REAL ESTATE MANAGEMENT PLATINUM SPONSOR SHOWCASE 2022

Is your association compliant with the new law?

Effective October 1, 2022, Maryland legislation requires ALL community associations to obtain a reserve study and to budget for reserves in the amount recommended. If your community hasn’t completed a reserve study since 2018 or hasn’t fully funded your reserves to the level recommended in the most recent reserve study, you may be at risk!

Call us. We can help. 443-796-7405 Experience counts. WPM Real Estate Management has a 50-year track record of working with homeowner and condominium associations across the MidAtlantic region to ensure communities are compliant and prepared for necessary repairs or replacement projects.

Our managers are industry certified (PCAM®, AMS®, and CMCA®), knowledgeable about current requirements, and backed by a team of in-house experts in accounting, technology, and construction.

WPM Real Estate Management 11433 Cronridge Drive, Owings Mills, MD 21117 wpmllc.com/association WPM is an Accredited Association Management Company (AAMC®) and an Accredited Management Organization (AMO®).

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REAL ESTATE MANAGEMENT

By now, like every Association and Member across the nation, you are seeing and feeling the effects of inflation. Rising costs for contracted services and materials almost always equate to increases in assessments, and in some cases, quite substantial ones. While it may seem logical that assessments would increase along with everything else, understanding how inflation directly affects association services is sometimes challenging to piece together. We asked our business partners to share with us how inflation is affecting them to help explain what you may see and why. Here’s what they said.

AquaSafe Pool’s Rob Struhar on rising pool costs “As we approach budgeting for the 2023 pool season, there is some industry feedback we would like to share that has impacted and will continue to impact pool operations in 2023.

1. Supply Chain Challenges cause long wait times and increased costs.

Atlantic Maintenance Group, Gary Saylor, on general maintenance and snow removal “The beginning of this year has proven to be a challenge for all of us with the rising cost of diesel fuel, gasoline, materials, labor, etc.

Atlantic Maintenance Group, LLC has resisted raising prices for as long as possible. Due to the undiscriminating nature of this monetary situation, we can no longer withstand these increased costs.

Effects of Inflation on Contracted Services—What Can You Expect?

• The common ones we saw causing delays and downtime this year were pump and motor parts. From entire unit replacements to small parts on the most common brands, we saw multiweek delays to receive the parts needed. Distributors’ stock grows around September until March and begins to dwindle down extremely quickly as all pool companies start ordering parts at a high rate in March.

• New notice of chlorine increases. Chlorine costs will have a 25%-35% increase for 2023. Driver shortages caused delivery delays and have put a premium on chlorine delivery for 2023.

We have adjusted our estimates and our contracts with the implementation of the fuel surcharge due to the rising costs mentioned previously. This means you will see an increase (25%–40%) in the annual price for any renewal contract and/ or new contract of general maintenance and a price increase on snow removal costs for your community.”

Rees Broome, PC, Leslie Brown on legal costs

“Law firms are facing the same challenges with inflation and staffing as other industries servicing community associations. Inflation affects labor costs and the internal services and supplies that law firms utilize to keep their practices running smoothly. While law firms strive to provide value for their clients, there should not be a surprise if clients see an increase in legal fees due to inflation. Community associations should have a dialogue with their legal counsel to see if there are ways to hedge against inflationary increases through the use of retainers or fixed fee arrangements. Of course, there is no “one shoe size fits all” approach, as each association has different needs that must be independently reviewed with legal counsel.”

2. Post Pandemic staffing • Nothing new here locally in the U.S. but the added struggle is the ability to navigate international employees. You can have everything set up and approved and a last-minute foreign policy, Visa change, or Covid breakout can cut scheduled workforce arrivals and cause massive shortages. We spend time recruiting internationally year-round and if you get a last-minute cut, the shortages become very difficult to navigate 3. What can you do to ensure the best possible season • Sign early, by end of October if possible • Have off-season checkups to identify repairs needed and have them done over the off-season if possible • If you want to renovate, do it in the off-season. Pre-season season (March-May) renovations involve a lot of material and labor and can cause delays over weeks and even months into the season.”

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Toepfer Construction, Co., Dani Bressler on restoration services “Our costs have increased both in our overhead and our supplies.

However, many of these costs cannot be passed on to customers.

Our insurance costs (health, general liability, workers comp, and auto) have skyrocketed in the last 2 years. We are competitively bidding our insurances, and the lowest costs are still coming in at a 12 to 15% increase from previous years. This is a massive overhead expense, that is difficult to pass on to the customer. Our fuel bills have doubled this past year, with 25 to 30 vehicles on the road each day, going from $2 per gallon to $4 per gallon is a significant increase in our overhead expense. Electricity to operate our building has drastically increased, as have all utilities. Costs for computer hardware, paper, office supplies, etc. have not remained the same as 2020, with notable increases in that arena as well.

So, cost increases in a broad span have drastically affected our profit margins, in a negative manner, with little ability to increase our costs to our customers, due to the unwillingness of insurance companies to increase their settlements.”

National Cooperative Bank, Don Plank on borrowing costs Borrowing costs have increased as the Federal Reserve has raised rates to try and combat inflation. Thus, not only do associations face higher costs due to inflation, but they also face higher costs when borrowing to finance a project. On the bright side, borrowing can still be a cost-effective way to address higher repair costs as doing a project all at once can often save more money than what is spent on interest costs. In other words, consider the cost of delaying or phasing a project and compare it to the cost of a loan which will allow you to do all the work at once.

Quest Insurance, Sami Satouri, RHU, ChHC on insurance

Reserve Advisors, Michelle Baldry on reserve studies “A reserve study conducted today reflects inflated costs for nearterm projects. However, we know that over the course of the reserve study, typically 30 years, inflation averages out. This is why studies conducted today should reflect a lower than the current inflation rate.

We are using a 3% inflation rate for non-immediate projects.”

In Florida, disasters such as the collapse of the Surfside Condominium last year and the recent impact of Hurricane Ian resulted in an estimated loss of between $42–$57 billion leaving multiple carriers insolvent. They simply do not have the reserves to meet the demand.

Sixth Florida property insurer declared insolvent—CBS Miami (cbsnews.com). An insurer’s insolvency is greatly impacted by inflation due to the reduced value of investments being held by insurance companies resulting in fewer reserves available with which to pay claims. An insurance carrier’s rating and financial standing should never be overlooked.

Natural disasters, which are occurring more frequently and with more severity, are leading causes of premium increases. Consequently, fewer carriers are willing to provide coverage in the property management marketplace.

“Premium increases run the gamut as far as coverage, risk characteristics, loss history, and geography. In 2021 the insurance industry reported $111 billion in insured natural catastrophes losses which resulted in large increases in reinsurance rates and treaties. In 2022, all carriers are being impacted by an increased cost of construction and claims compounded by inflation and re-insurance costs resulting in premium increases of 5%–8% over last year without taking loss history into account.”

— Joe McNeill, Assistant Vice President at Philadelphia Insurance Companies

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During high inflation periods, insurance companies are hit with rising costs for claims, payouts, and increased operating costs. To offset expenses, particularly during this hardening marketplace (e.g. there is high demand for insurance coverage and low appetite to insure), carriers become more stringent in their underwriting efforts, limiting coverage (e.g. higher deductible or premium) or denying coverage altogether. Carriers are more mindful of this when they weigh the premium charged against the burden of risk they are willing to carry. Managers and service providers alike should budget for higher premiums and work hard to prevent the frequency of claims.

Healthcare carriers have been affected by the effects of Covid-19, treatment costs, and subsequent claims, as well as the current surge in elective surgeries and treatments that were delayed during the pandemic. As a result, healthcare is in higher demand, and costs have risen proportionally, causing insurers to have to pay more for claims. Ultimately, those increased costs are reflected in the renewal of medical premiums.

In closing, community managers should prepare their boards for higher costs, supply chain challenges that result in delays, and slower customer service due to post-pandemic staffing shortages that are affecting all industries.

Article Administered by Michelle Doster, CMCA®, AMS®, PCAM® General Manager, Lake Linganore Association, Inc.

“In closing, community managers should prepare their boards for higher costs, supply chain challenges that result in delays, and slower customer service due to post-pandemic staffing shortages that are affecting all industries.”

Expertise. Focus.

Solutions.

Put the leading bank for community association management companies to work for you with individualized service, awardwinning technology and smart financial solutions.

cit.com/cab Let’s get started.

Nicole Skaro, CMCA VP, Regional Account Executive 908.524.8741 | Nicole.Skaro@cit.com

© 2022 First-Citizens Bank & Trust Company. All rights reserved. CIT and the CIT logo are registered trademarks of First-Citizens Bank & Trust Company. MM#12297

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