MAGAZINE
Connect
2 0 2 3 : I S S U E F O U R • T H E P U B L I C AT I O N O F C A I - G R E AT E R I N L A N D E M P I R E
DI BUIL
’ WHAT S
INSIDE
DON’ T FO R G E T T HE BAS I CS AS SE M B LY B I L L 1 5 7 2 I R R I G AT I O N R E S T R I C T I O N S FOR NONFUNCTIONAL TURF H OW TO S U RV I VE A K I TC H E N F I R E
R
OW
G N
R E T F OMO A S A R
continuing continuing education education Managers are required Managers are required toto recertify recertifyevery every pay 22 years and paythe the yearsand maintenance fee maintenance feeeach each year. year.
16 16hours hours
continuing education must of of continuing education must completed within this twobebe completed within this twoyear recertification cycle. year recertification cycle. Credit hours must either: Credit hours must either: Pertain Pertain toto community community association association operations operations oror management management Contribute Contribute toto professional thethe professional developmentofof development the CMCA the CMCA 2 |
CONNECT MAGAZINE • ISSUE FOUR 2023
There Thereare aremore morethan than
1,000 1,000
pre-approved pre-approvedcontinuing continuing education educationcourses. courses. No Noclasses classesininyour yourarea? area?
Online OnlineCourses Courses
canhelp helpyou you can completeyour your complete requirement. requirement. Onlinecourses courses Online mustprovide provide must proofof ofparticipation. participation. proof
Coursesrelated relatedto to Courses buyingand andselling selling buying realestate estateare arenot not real acceptable. acceptable. Visit CAMICB.org for a full list of Visit CAMICB.org for a full list of preapproved continuing education. preapproved continuing education.
TABLE of CONTENTS 5 President’s Message
14
Ty Jaglowski
6 CLAC Annual Planning Meeting (APM) 2023
CAI-CLAC Legislative Update Direct from Sacramento: New Legislation Impacting Your Communities A.J. Jahanian, Esq. and Daniel C. Heaton, Esq.
Betty Roth, CMCA, AMS, LSM, PCAM
7 Editor’s Link A.J. Jahanian, Esq.
10 Don’t Forget the Basics Eric Zarr, CMCA, AMS
12
17
How to Survive a Kitchen Fire Kimberly Lilley, CIRMS, EBP
20 Investigating Insurance Solutions 22
Advertiser Index
Assembly Bill 1572: Irrigation Restrictions for Nonfunctional Turf Max Moreno
CAI Board Leader Certificate
Training and Recognition for Your Board Complete the CAI Board Leader Certificate Course to receive your certificate and be recognized in your community and on the CAI website. Learn more www.caionline.org/BoardLeaderCertificate ISSUE FOUR 2023 • CONNECT MAGAZINE
| 3
MAGAZINE
Connect
A P U B L I C AT I O N O F T H E G R E AT E R I N L A N D E M P I R E O F C A I
W W W. C A I - G R I E . O R G EXECUTIVE COMMITTEE President Ty Jaglowski, Environmental Concepts Landscape Management, Inc. President-Elect Brian Henry, Park West Inc. Vice President Greg Borzilleri, Accurate Termite & Pest Control Secretary Betty Roth, CMCA, AMS, LSM, PCAM, Heritage Lake Master Association Treasurer Patrick Gabriele, Estates at Canyon Crest Riverside, Inc. Past-President Gina Roldan, Bemus Landscape, Inc.
BOARD DIRECTORS Pat King, Solera Oak Valley Greens Darren Mandel CMCA, AMS, PCAM, Keystone Pacific Property Management Nick Mokhlessin, Everthrive Landscape Tim Peckham, CMCA, AMS, PCAM, Powerstone Property Management Robert Riddick, CMCA, Sunnymead Ranch PCA
COMMUNICATIONS COMMITTEE Committee Co-Chair and Editor in Chief A.J. Jahanian, Esq., Beaumont Tashjian Committee Co-Chair Daniel C. Heaton, Esq., Nordberg | DeNichilo, LLP Committee Members Gina Fanizzi, FirstService Residential, AAMC Darlene Glasser, Diamond Bar Tennis Club Community Association Kimberly Lilley, CMCA, CIRMS, Berg Insurance Agency Eric Zarr, CMCA, AMS, FirstService Residential, AAMC
CHAPTER STAFF Executive Director Adam Ybarra, CAI-Greater Inland Empire Administrative Assistant Elda Pfitzinger, CAI-Greater Inland Empire All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of either Connect or the Community Associations Institute–Greater Inland Empire Chapter. Information contained within should not be construed as a recommendation for any course of action regarding financial, legal, accounting or other professional services and should not be relied upon without the consultation of your accountant or attorney. Connect is an official quarterly publication of Greater Inland Empire Chapter of the Community Associations Institute (CAI– GRIE). The CAI–GRIE Chapter encourages submission of news and articles subject to space limitation and editing. Signed letters to the editor are welcome. All articles submitted for publication become the property of the CAI–GRIE Chapter. Reproduction of articles or columns published permitted with the following acknowledgment: “Reprinted with permission from Connect Magazine, a publication of the Greater Inland Empire Chapter of the Community Associations Institute.” Copyright © 1998–2023 CAI-Greater Inland Empire Chapter.
CONTACT Advertising, Articles or Correspondence CAI-GRIE Chapter Headquarters 5029 La Mart Dr, Ste A • Riverside, CA 92507-5978 (951) 784-8613 • info@cai-grie.org CAI-GRIE Chapter CAI-GRIE.org
4 |
CONNECT MAGAZINE • ISSUE FOUR 2023
PRESIDENT’S MESSAGE TY JAGLOWSKI, CHAPTER PRESIDENT
VI C E PR ES I D E NT, E NV I R ONM ENTA L CONCEPTS L ANDSCAPE MANAGEMENT, INC.
I
cannot believe that 2023 is coming to an end. We are coming off an amazing PROM night put on by our outstanding Monte Carlo Committee, which had a great live band, gaming, and outstanding donated prizes. Thank you to all who made that evening one to remember. Our chapter also had our annual holiday cooking classes in Claremont, which a full participation and interaction with some of our board members. We recently gathered to share a holiday breakfast at our end of the year TOPS awards, where we were able to acknowledge and celebrate all the hard work and achievements that were made during the 2023 year. I just want to say thank you to everyone who has been a part of the chapter, whether in person at events or behind the scenes planning and discussing during committee meetings, this chapter has really felt like a FAMILY this year in many ways and has created great memories for
not only or chapter and industry, but for myself. It has been an honor to serve as your 2023, chapter president this year. We are extremely excited to start 2024 with Brian Henry at the helm to lead our TEAM. Sincerely, Ty Jaglowski
“This chapter has really felt like a FAMILY this year in many ways and has created great memories for not only our chapter and industry but for myself.”
CAI–GREATER INLAND EMPIRE The CAI–Greater Inland Empire (GRIE) Chapter hosts educational, business and social events that provide the Chapter’s Business Partners various opportunities to promote their companies’ products and services to Community Association owners and managers serving the Community Association Industry. It is expected that all participants in Chapter events – whether they be educational, business or social – will conduct themselves in a professional manner representative of their business or service organization so as not to detract from the experience of others seeking to benefit from their membership in the Chapter. For more information, visit cai-grie.org
ISSUE FOUR 2023 • CONNECT MAGAZINE
| 5
CLAC ANNUAL PLANNING MEETING (APM) 2023 Back In Person and a Great Experience BY: BETTY ROTH, CMCA, AMS, LSM, PCAM CLAC EXECUTIVE COMMITTEE TREASURER
I
n years past, the CLAC Annual Planning Meeting (APM) was held during the Southern California Legal Forum. It was an in person meeting of the California Legislative Action Committee (CLAC) which included delegates, liaisons and recently, Legislative Support Committee members from the eight chapters of the Community Association Institute (CAI). After 2020, the Annual Planning Meeting was held virtually for the safety of the members. This year we were able to hold the meeting in person. It was held on Friday, October 20, 2023, and was a very successful meeting. Approximately fifty (50) attendees come together at the Laguna Woods 1 clubhouse in Laguna Woods CA. It was a great setting. The Executive Committee of CLAC along with Louie Brown, the CLAC advocate began the meeting with an agenda which held issues that were brought to the attention of the committee from many community leaders all over the entire state. These items were discussed one by one. It was a very lively and respectful discussion. All attendees had an opportunity to weigh in on each item and an agenda was
6 |
CONNECT MAGAZINE • ISSUE FOUR 2023
created for 2024 to take to the legislator for their support and authorship of bills. Everyone agreed that there were many issues worthy of a closer look in 2025. Typically, four or five concerns are taken to the legislators each year. These will be discussed by CLAC Task Forces as well as the CLAC delegate body with input from Louie Brown before the Advocacy Week in April 2024, where CLAC members will have an opportunity to take the final proposed bills to Sacramento and discuss them with their legislators in person. Overall, it was a very successful meeting and opportunity to get together with friends and new acquaintances that we have seen on virtual calls and now were able to enjoy in person. We look forward to next year’s in person meeting and hope that so many more will join us. Betty Roth, CMCA, AMS, LSM, PCAM of Heritage Lake HOA serves as CLAC Executive Committee Treasurer.
EDITOR’S LINK A.J. JAHANIAN, ESQ. B EAUM ONT TAS HJ I A N
Dear Esteemed Readers,
A
s we draw the curtain on another remarkable year, it is with great pride that we present the final issue of Connect. This issue serves as a beacon of insight, delving into the forthcoming legislative landscape with discussions on pivotal new laws set to debut in 2024, notably AB 572, AB 1033, and AB 648. Our aim, as always, is to equip community association managers and board members with the knowledge needed to navigate these changes effectively, ensuring informed decision-making and proactive governance. Throughout the year, our magazine has been dedicated to serving as a vital resource, providing actionable tips, and fostering dialogue within our community. In this final issue, alongside legislative insights, you’ll find a treasure trove of practical advice tailored to empower our readers. From strategic planning to enhancing community engagement, we’ve endeavored to equip you with the tools necessary for success. Serving as your editor has been an absolute honor, allowing me to witness the dedication and passion of our community firsthand. Looking ahead to the new year, I am excited about the opportunities that await us. As we bid farewell to 2023, let us carry forward the lessons learned, the connections made, and the progress achieved. I eagerly anticipate the future endeavors and shared growth of our vibrant community. Wishing you all a joyous conclusion to 2023 and an exhilarating start to the promising new year ahead. A.J. Jahanian, Esq. is a partner with Beaumont Tashjian who devotes his career to serving common interest developments. He can be reached at ajahanian@HOAattorneys.com
Community Legal Advisors Inc. COMMUNITY ASSOCIATION ATTORNEYS
General Counsel
Serving San Diego County, Orange County, Inland Empire and Coachella Valley
Toll Free 833.938.1877 AttorneyforHOA.com
• • • • • • •
ADA & DFEH Compliance CC&R & Bylaw Amendments Architectural Matters Contracts & Insurance Elections & Recalls Employment Law Legal Opinions
Assessment Collection • • • •
Timely Status Reports Responsive Paralegals Collectibility Analysis Judicial or Non-Judicial Foreclosures • Money Judgment Lawsuits • Small Claims Assistance • Post Judgment Recovery
ISSUE FOUR 2023 • CONNECT MAGAZINE
| 7
8 |
CONNECT MAGAZINE • ISSUE FOUR 2023
Honesty, Quality, Integrity. These guiding values have allowed AMS Paving to become the #1 choice for community associations.
Paving the way since 1981!
Our Services: • Asphalt Repair, Patching & Crack Seal • Asphalt Removal & Replacement • All types of Slurry Seals • ADA Compliance • Striping
Let’s Get Social! Follow us @amspaving
909.357.0711 ● Lic: #415436
ISSUE FOUR 2023 • CONNECT MAGAZINE
| 9
DON’T FORGET THE BASICS BY: ERIC ZARR, CMCA, AMS FIRSTSERVICE RESIDENTIAL
W
hen it comes to safety and security items, oftentimes the basics are what is most needed, but also overlooked. Instead of feeling overwhelmed, making a few simple changes to your daily routine can easily help to protect you and your family.
Don’t let your guard down as you get closer to home. According to the National Highway Traffic Safety Administration, about 52 percent of accidents occur within five miles of home. Whether you are driving home from a long day at work during the week, or coming back from a family event on the weekend, be vigilant as you get closer to home. Those same streets you pass by multiple times a day can still have something different.
Having your garage lights and porch light on throughout the night are simple things to do as well. Make sure your fire detectors and CO2 detectors are working correctly by testing them monthly and replacing their batteries every six months. Know what your police department’s non-emergency number is. If you see something suspicious, call them via that non-emergency number, and only after you are through with that call should you call your Association Management to let them know as well.
Speaking of cars, parking your vehicles in a garage helps keep them safer from theft and vandalism. Parking in a garage can also help extend the life of your vehicle as it keeps the engine better lubricated. If you are unable to park your vehicle in a garage at home, and especially when you are out in public parking areas, make sure to always keep valuables out of sight and your vehicle locked at all times.
Being safer does not have to be a complicated or expensive endeavor. Being aware of your surroundings, keeping valuables out of sight with doors locked at all times, and having a well-lit home are things one can do every day. Checking smoke and CO2 detectors on a regular basis are not complicated either. Don’t forget about the basics and be a little safer every day.
Other doors to keep locked at all times are all the doors to your home. You might be like the McCallisters from Home Alone and live on the most boring street in the United States of America, where nothing even remotely dangerous will ever happen. However, it only takes a second to get into a garage if the side door is unlocked, allowing an intruder to break into your home. There are too many videos online of thieves coming into a home through an unlocked front door. 10 |
CONNECT MAGAZINE • ISSUE FOUR 2023
Eric Zarr, CMCA, AMS, is a General Manager with FirstService Residential and holds both the CMCA and AMS designations. Eric has worked onsite at the K. Hovnanian’s Four Seasons at Beaumont Community Association, Inc a 55+ community with 1,853 homes. for 9 years, first as the Assistant General Manager and now as the General Manager for the past 5 years. Prior to being onsite he managed a portfolio of accounts for over 3 years including single-family homes, condominiums and townhomes. He served for three years on the Board of Directors for the CAI-GRIE where he was Secretary for 2 years and currently volunteers on the CAI-GRIE Communications Committee.
The Recognized Authority in Community Association Law FIORELAW.COM | 877-31-FIORE Inland Empire > Orange County Coachella Valley > San Diego County
ISSUE FOUR 2023 • CONNECT MAGAZINE
| 11
ASSEMBLY BILL 1572 IRRIGATION RESTRICTIONS FOR NONFUNCTIONAL TURF
BY: MAX MORENO, VP OF WATER CONSERVATION HARVEST LANDSCAPE ENTERPRISES INC.
I
n an effort to conserve California’s water resources, Governor Newsom signed Assembly Bill 1572 into law on Saturday, October 14, 2023. The law is designed to significantly reduce the use of potable water for irrigating nonfunctional turf, with the goal of enhancing water sustainability across the state.
The law focuses on specific property types, both residential and commercial, where potable water is currently used for nonfunctional turf irrigation. It emphasizes that using potable water for nonfunctional turf irrigation is both wasteful and inconsistent with the State’s policies regarding climate change, water conservation, and reduced reliance on the Sacramento-San Joaquin Delta ecosystem. Under the provisions of AB 1572, the use of potable water for irrigating turf that doesn’t serve recreational or community purposes would be prohibited. With respect to homeowners associations and common
12 |
CONNECT MAGAZINE • ISSUE FOUR 2023
interest developments, the effective prohibition date is January 1, 2029. Nonfunctional turf is defined within the law as any turf that does not serve a functional purpose. This definition encompasses turf situated in street rights-of-way and parking lots. Functional turf is further defined as “a ground cover surface of turf located in a recreational use area or community space.” The Bill further defines the terms “community space” and “recreational use area.” Although the precise meaning of these terms has yet to be determined, the law indicates that it does not apply to residential lawns, playgrounds, picnic grounds, pet exercise areas, sports fields, or cemeteries.
“The law emphasizes that using potable water for nonfunctional turf irrigation is both wasteful and incompatible with the State’s policies...” AB 1572 carries significant implications for different property owners, with specific timelines for compliance. The provisions applicable to community properties are the following: •
Homeowners associations must transition to reclaimed water for nonrecreational or non-community space areas by 2029.
•
Owners of properties with over 5,000 square feet of irrigated common area in homeowners associations and common interest developments must certify compliance starting on June 30, 2031, and every three years until 2040.
•
The use of potable water is not prohibited to the extent necessary to ensure the health of trees and other perennial nonturf plantings, or to the extent necessary to address an immediate health and safety need.
If you have any questions regarding the effects this will have on your community or to get tips on how you can comply with the new law, reach out to your preferred landscape service provider. Max Moreno is the VP of Water Conservation at Harvest Landscape Enterprises Inc. He has been professionally managing high-level projects in Southern California for over 15 years. He is a certified Water Manager Expert through the California Landscape Contractors Association (CLCA) and holds additional certifications as a Certified Landscape Irrigation Auditor and Qualified Water Efficient Landscaper and trainer.
ISSUE FOUR 2023 • CONNECT MAGAZINE
| 13
CAI-CLAC
LEGISLATIVE Update
Direct From Sacramento:
New Legislation Impacting Your Communities BY: A.J. JAHANIAN, ESQ. OF BEAUMONT TASHJIAN AND DANIEL C. HEATON, ESQ., NORDBERG | DENICHILO, LLP
AB 572
AB 648
AB 572 creates a new Civil Code § 5605 that applies to new associations where the original CC&Rs were recorded on or after January 1, 2025. The law prohibits boards from imposing a regular assessment against owners of deed-restricted affordable housing units that is more than five percent (5%) plus the percentage change in the cost of living, and not to exceed ten percent (10%). In other words, any new associations formed after the above date may be limited in terms of how much they may increase regular assessments and may end up facing a potential disparity in the amount of assessments imposed against certain sections of their membership that own deed-restricted affordable housing units versus those that do not. Boards will need to keep this in mind when budgeting for the common expenses each year and should consult with legal counsel in advance to evaluate whether the community is comprised of any affordable housing units and, if so, what procedures should be implemented to ensure that assessment levels are properly tracked and kept within the above statutory limitations.
One of the benefits coming out of the pandemic was the development of new tools such as Zoom and Teams that allowed boards and members to more easily communicate with each other. Prior law allowed for virtual board meetings but required a physical location to exist where members were able to attend the meeting and participate, along with designating a representative to be present at the physical location to assist with access. Now, AB 648 will allow board meetings to occur entirely virtually, and no physical location will be required, so long as the board provides owners with: 1) clear technical instructions on how to participate by teleconference; 2) the phone number and email address of a person who can assist with access and participation in the virtual meeting before and during the meeting; and 3) a reminder that they can request individual delivery of notices of the virtual meetings. Additionally, any vote by the directors must be done by roll call vote with the results recorded in the minutes. Note, any meetings involving ballotcounting still require a physical location and present board member.
(Assessment Limitations for Affordable Housing)
14 |
CONNECT MAGAZINE • ISSUE FOUR 2023
(Virtual Meetings) – CAI-CLAC Sponsored
Boards and managers should work with legal counsel to update their governing documents and adopt guidelines for virtual meetings, including notice requirements, conduct and decorum.
AB 1033
(Separate Sale or Conveyance of ADUs) AB 1033 appears to be the next step in an ongoing legislative push to try to increase affordable housing throughout the State. It permits homeowners to sell their accessory dwelling units (ADUs) separate from their primary residences, effectively resulting in de facto lot splitting and the creation of a mini-condo development. Luckily, AB 1033 does not inhibit an association’s ability to amend its governing documents to require approval of the membership before such a sale will be permitted. Boards and communities should keep in mind that permitting ADUs to be sold separately from the primary residence will likely result in a host of separate legal issues, including questions as to what extent the new owners are part of the association and whether they are subject to assessments, and if so, how will they be re-calculated throughout the community? Additional practical concerns may occur from the creation of new members without developer approval, including excessive parking, increased density and utility usage, and others changes in the character of the community. For these reasons, it is best that common interest developments work quickly to adopt rules and/or amendments to their governing documents geared towards prohibiting ADUs from being separately conveyed from any primary residence.
AB 1458
(Lower Quorum for Adjourned Director Elections) – CAI-CLAC Sponsored AB 1458 aims to help address a long-standing problem of associations being unable to reach unnecessarily high quorum requirements for director elections by lowering the quorum requirements for adjourned meetings to 20% unless a lower quorum is authorized by the governing documents. The Association must first provide an additional notice to the membership that indicates that the board may call a subsequent meeting at least 20 days after a scheduled election if the required quorum is not reached, at which time the quorum to elect directors will be 20% of the members voting in person, by proxy, or by secret ballot. The association must provide a similar second general notice no less than 15 days prior to the adjourned election date. Any association that has a quorum requirement higher than 20% for an election of directors should work with their legal counsel to update their election forms and timelines so that they include the requirements for providing the above additional notices to the members that permit the meeting to be adjourned and the reduced quorum percentage to be utilized as a result.
AB 1764
(Director Qualifications) Following a change in the law in 2020, associations were limited in the grounds that could be used to disqualify candidates for election to the board of directors. That change also created some confusion as to whether the grounds for disqualification also applied to sitting directors. AB 1764 cleans up several of those questions by making clear that any grounds that disqualify a candidate for election must also apply to sitting directors. The bill also makes clear that a director who ceases to be a member of the association automatically becomes disqualified to serve on the board. Finally, the bill reinstates term limits as a ground for disqualification if term limits are included in the association’s bylaws.
SB 428
(Workplace Restraining Orders) SB 428 provides associations with a more expansive tool to protect those that serve community associations, including board members and community managers. Code of Civil Procedure § 527.8 currently allows an employer, including an association, to seek a restraining order on behalf of employees if they have suffered unlawful violence or a credible threat of violence in the workplace. While the term “employee” is broadly defined to include board members, volunteers, and independent contractors who perform services for the employer, the type of misconduct that triggers the right has required an extreme threshold of violence or threats of violence. SB 428 will amend CCP 527.8 beginning January 1, 2025, to authorize an employer to seek a restraining order on behalf of an employee that has suffered “harassment,” meaning “a knowing and willful course of conduct directed at a specific person that seriously alarms, annoys, or harasses the person, and that serves no legitimate purpose.” This addition gives boards a significantly broader tool to be able to protect themselves and their managers, volunteers, and some vendors from a larger range of abusive conduct. A.J. Jahanian, Esq. is an associate attorney with Beaumont Tashjian who devotes his career to serving common interest developments. He can be reached at ajahanian@ HOAattorneys.com. Daniel C. Heaton, Esq., is a Senior Associate at Nordberg | DeNichilo, LLP, and exclusively represents community associations throughout California as corporate and litigation counsel. He is a member of CAI-GRIE’s Legislative Support Committee. Daniel can be reached at daniel@ ndhoalaw.com.
AB 648, a product of the pandemic, now permits virtual board meetings without designating a separate physical location.
ISSUE FOUR 2023 • CONNECT MAGAZINE
| 15
CAI-CLAC’s Advocacy Week in Sacramento – April 2-3, 2024
Follow Us! HAVE YOUR COMMUNITY ASSOCIATION BOARD MEMBERS CHANGED SINCE LAST YEAR?
BE SURE TO UPDATE
your board’s member names, titles (President, Vice President, Treasurer, Secretary, and Board Member), and contact information to ensure your board members receive all the latest CAI member benefits!
UPDATE TODAY:
ONLINE at www.caionline.org EMAIL addresschanges@caionline.org MAIL to CAI, P.O. Box 34793, Alexandria, VA 22334-0793
CAIRenewalBuckslips3.5x8.5_2021.indd 2
16 |
CONNECT MAGAZINE • ISSUE FOUR 2023
1/26/21 12:21 PM
KITCHEN FIRE HOW TO SURVIVE A
BY KIMBERLY LILLEY, CIRMS, CMCA, EBP
W
orking in the insurance industry, I’ve had plenty of opportunities to warn folks about possible hazards that exist for them day-to-day, and how to be prepared to either (1) avoid the peril or (2) handle the peril once it occurs. And still, it was a shock when one day the almonds I was toasting under the broiler burst into flames. I stood there for at least 5 seconds thinking, “Oh, look, there’s a fire in my oven,” before I realized that I needed to actually DO something about it. But what to do? If I OPEN the oven, that adds air which fuels the fire. But is the fire going out? Or getting bigger? Sadly, in this case, it was getting bigger. I realized I needed to pull out the fire extinguisher that was under my sink. Thank GOODNESS I had a fire extinguisher under my sink. Given my profession, I have MANY fire extinguishers throughout my home. If that were not the case, there is a very real chance that my home would have sustained much more damage, and possibly burned to the ground.
I grabbed the fire extinguisher and was frustrated to discover that, while the fire was raging in my stove, I was unable to read the instructions on how to use this fire extinguisher and had to go get my glasses. While I was familiar with a traditional fire extinguisher, this one was a small canister fire suppressant that was new to me. I was going to get around to familiarizing myself with it. I really was. Luckily, I have as many glasses lying about the house as fire extinguishers, so I was able to read the instructions and activate the fire extinguisher, spraying along the base of the fire with a sweeping motion. And like that, the fire was out. I won’t bore you with how much work it was to clean up my stove after that, but I will leave you with some additional tips: �
Keep an eye on your cooking: unattended cooking is the number one cause of cooking fires.
�
Don’t wear loose or drapey clothing when cooking, and keep towels and potholders away from hot surfaces.
�
Keep an eye on kids and pets.
�
Keep cooking surfaces clean – food and grease can catch on fire.
�
Keep solvents and flammable cleaners away from heat sources (don’t store them above your stove).
� �
Keep the handles of pans out of the kitchen traffic pattern (to avoid food spills).
�
On the top of the stove, you can often smother a fire with a pan lid.
�
You can extinguish food fires with baking soda (NOT water or flour).
�
Don’t be afraid to call the fire department!
Kimberly Lilley, CRIMS, CMCA, EBP is the Director of Business Development for Berg Insurance Agency and can be reached at kimberly@berginsurance.com
ISSUE FOUR 2023 • CONNECT MAGAZINE
| 17
18 |
CONNECT MAGAZINE • ISSUE FOUR 2023
ISSUE FOUR 2023 • CONNECT MAGAZINE
| 19
Investigating
INSURANCE SOLUTIONS T
he Insurance Task Force of CAI’s California Legislative Action Committee (CLAC Home - California Legislative Action Committee - CAI-CLAC (caiclac.com)) has been actively advocating to address the insurance crisis that many California community associations are currently experiencing. As you have heard from us in previous articles, the California Department of Insurance (CDI) has acknowledged the distinction between the insurance needs of a single-family home vs. a community association’s commercial insurance needs and has begun to include community associations when they are considering changes to current insurance code and regulations. They formed a working group in July to explore more deeply what solutions might be to the insurance crisis that we are in, and CAI-CLAC was invited to the table for that discussion. This is something that, even only two years ago, would have been unheard of. We have also been attending meetings requested by legislators as a result of our Advocacy Week and have had some excellent opportunities for education and engagement. The Insurance Staffer for Senator Rubio’s office (Senator Rubio is the Chair of the Standing Senate Committee on Insurance) had some really positive things to say about our definition of the problem and proposed short- and
20 |
CONNECT MAGAZINE • ISSUE FOUR 2023
long-term solutions. She invited us to a Senate hearing (yet to be scheduled) to dig into some of those solutions more deeply. As you may have heard, the California FAIR Plan (CFP), created to be a “market of last resort” for homes and businesses unable to obtain insurance elsewhere, announced an increase in limits available as of November 1, 2023, and have clarified that condominiums are also included as risks that can be insured by the CFP. These changes may help some associations that are desperate for coverage to get SOME insurance coverage for their members. While this is certainly a “win,” it is in no way a final solution. The coverage offered by the CFP does not provide all of the coverage that a community association needs, and a companion policy will be necessary to fill in those gaps. This is also not a sustainable solution for the insurance industry. Those higher limits do not create enough money coming IN to pay OUT on all of the potential claims. That means prolonged use of this model for the CFP will eventually lead to financial harm for all of the members of the CFP, which are the admitted carriers in California. Speaking of admitted carriers in California, we have all heard about State Farm pulling out of the state of California entirely. While this made national news, many smaller insurance carriers had been pulling out of the state already. Increased
costs were created, in large part, because carriers were unable to write business in many parts of the state. Remember, insurance companies are subject to strict solvency regulations, and if they are (a) unable to obtain adequate premium for the loss potential associated with wildfire, and (b) legally prevented from reducing their risk by limiting coverage for wildfire, then the insurance carriers CANNOT underwrite that risk. Insurance carriers balance the possible losses they might incur against the premium they can bring in. If it is IMPOSSIBLE for them to bring in more than they will most likely be spending on claims, it would be bad business practices to continue. If we do not find a way to make it financially possible for carriers to participate in California’s insurance market, this crisis will only get worse. Thank you for your support of CLAC and for your interest in the progress of our Insurance Task Force. We recognize the overwhelming burden it has created for so many California communities, and we’re grateful for your partnership in these efforts. If you haven’t already done so, we urge you to take a moment to sign up for CLAC updates here: CAI-CLAC : Sign Up to Stay in Touch (constantcontact.com). Also, if you, or a community you manage, are directly impacted by the insurance crisis in California, we have created a three-step list of who to contact to make sure your voice is heard. The more we speak up, the more people start to listen.
SERVING OVER 13 MILLION HOMEOWNERS IN 5 5 , 0 0 0 + C O M M U N I T Y A S S O C I AT I O N S T H R O U G H O U T C A L I F O R N I A
THREE ACTION STEPS FOR
Communities and Homeowners Impacted by California’s Insurance Crisis
1
Tell Us Your Story SCAN TO FILL OUT FORM
By sharing your story, CAI-CLAC can help to advocate on your behalf. Please fill out this brief form.
OR CLICK HERE TO FILL OUT FORM
2
3
Contact Your Legislator The districts have been redrawn recently, so to be sure you are contacting the correct legislator. Check out our “Contact Your Legislator” page and scroll down to “Find Your Legislator.”
Contact the California Department of Insurance Let the California Department of Insurance know how this insurance increase impacts your life by providing comments in their contact form.
SCAN TO CONTACT YOUR LEGISLATOR
OR CLICK HERE TO CONTACT YOUR LEGISLATOR
SCAN TO CONTACT CA DEPT. OF INSURANCE
OR CLICK HERE TO CONTACT CA DEPT. OF INSURANCE
| 888.909.7403 | office@caiclac.com | caiclac.com
ISSUE FOUR 2023 • CONNECT MAGAZINE
| 21
ADVERTISE In COnnect Magazine
get your brand seen! visit cai-grie.org
Advertisers Listed Alphabetically by Company
Company
Page
AMS Paving Inc................................................... 9 Berding | Weil..................................................... 4 Community Legal Advisors.................................. 7 EmpireWorks...................................................... 4 Fiore, Racobs & Powers, A PLC......................... 11 22 |
CONNECT MAGAZINE • ISSUE FOUR 2023
For 25 years the leading advocate for professionalism, integrity, and achievement in the field of community association management. Saluting the leaders, managers, and homeowners who have made the Certified Manager of Community Associations (CMCA®) credential
The Essential Credential for professional community
association managers worldwide.
www.camicb.org
ISSUE FOUR 2023 • CONNECT MAGAZINE
| 23
5029 La Mart Dr, Ste A Riverside, CA 92507-5978 info@CAI-GRIE.org www.CAI-GRIE.org
