Blog
By Steve Walz, CMCA®, AMS®, Westward360-Denver
In the world of Colorado common interest communities, being a board member is often a thankless job. You’re balancing tight budgets, aging infrastructure, and the occasional neighborly dispute. However, beneath the day-to-day operations lies a legal and ethical bedrock that every director must stand upon: the Duty of Loyalty.
As a manager, I’ve seen boards thrive when they embrace this duty and crumble when they ignore it. In Colorado, this isn't just "good advice"—it is a requirement codified under the Colorado Common Interest Ownership Act (CCIOA) and the Colorado Revised Nonprofit Corporation Act.
At its core, the duty of loyalty requires a board member to act in the best interests of the association, rather than for their own personal gain or the benefit of a specific group of friends or neighbors.
While the Duty of Care is about being informed and making diligent decisions, the Duty of Loyalty is about motive and allegiance.
There are three pillars to loyalty. This first is Confidentiality which addresses keeping executive session discussions and sensitive owner information private. The second is conflict of interest disclosure, which requires transparency when a personal interest intersects with an association decision. The third is corporate opportunity, which is not taking advantage of information gained as a director for personal profit.
In Colorado, board members are generally held to the "Good Faith" standard. This means that if you act in good faith, with the care an ordinarily prudent person would exercise, and in a manner you reasonably believe to be in the best interests of the association, you are protected by the Business Judgment Rule.
However, the moment a personal agenda replaces the community's welfare, that protection evaporates.
From the manager’s desk, these are the most frequent ways the duty of loyalty is tested:
When a board is perceived to be acting out of self-interest, trust—the currency of any HOA—devalues rapidly. When owners suspect that board members are "getting a deal" or "playing favorites," engagement drops, assessments become harder to collect, and litigation becomes more frequent. Conversely, a board that demonstrates a fierce loyalty to the community's long-term health fosters a culture of transparency and stability.
Professional Tips for Board Members
The Duty of Loyalty is your shield. When you prioritize the association above yourself, you aren't just following the law—you're building a better place to call home.
Steve Walz, CMCA®, AMS® is the General Manager for Westward360-Denver. Steve is a 12-year veteran of the industry and values personal relationships, open, clear communication and a slice of humor to navigate management of associations and his team. Steve is also a member of the CAI-RMC Editorial Committee.
By Andrew Bateman, Alera Group
One of the most important questions a Board of Directors or Community Manager can ask is simple:
Where did this property value come from?
The answer directly impacts whether your community is properly protected or financially exposed when a loss occurs. Yet many associations just renew the policy or rely on outdated estimates, assumptions, or incomplete data when determining their property coverage.
Why Accurate Property Valuation Matters
Property valuation is the foundation of your insurance program. If it is inaccurate, everything built on top of it is at risk.
Underinsurance is where the real exposure lies. If a loss occurs and coverage is insufficient, the association may face:
Boards have a fiduciary duty to act in the best financial interest of the association. That includes ensuring property values are accurate, defensible, and regularly reviewed.
How Property Values Are Determined
Not all valuation methods are equal. Understanding how your replacement value was calculated is critical.
1. Insurance Appraisal (Most Reliable)
2. Software-Based Estimations
3. Contractor or Builder Estimates
Why Valuations Must Be Reviewed Annually
Property values are not static. They are influenced by:
A valuation that was accurate even two or three years ago may no longer reflect today’s rebuild cost. Annual reviews ensure your coverage keeps pace with current conditions and avoids costly surprises.
Legal Responsibility and Risk Exposure
Board members are generally protected by governing documents and state statutes, but those protections have limits.
If a claim arises due to inadequate insurance, the Board and management company may be drawn into litigation. This is where Directors & Officers (D&O) insurance becomes essential.
Coverage that includes Failure to Procure Insurance is particularly important. Without it:
Each lawsuits wording is different, so coverage is dependent on the wording. These lawsuits may not be covered at all. Even with insurance, if the property value is incorrect, the policy will not cover the gap. That financial burden remains with the association.
Three Key Actions Every Association Should Take
In addition, Boards should review key property endorsements such as Ordinance or Law coverage and Water/Sewer Backup. These directly impact how losses are paid and whether additional costs fall back on the association.
The Bottom Line
Property valuation is not a one-time exercise. It is an ongoing responsibility that requires validation, documentation, and expert input.
Accurate values create confidence in your coverage, strengthen your Board’s decision-making, and protect your community from avoidable financial risk. The question is not whether you have insurance, but whether the value behind it is correct and defensible.
About Andrew Bateman
Andrew Bateman focuses on working with condominium, townhome managers and Board of Directors for their insurance needs at the Alera Group. Andrew is a Community Insurance and risk management specialist (CIRMS) He works closely with Boards and community managers to structure coverage that aligns with real-world risks and fiduciary responsibilities. His approach combines technical expertise with practical guidance to help associations make informed, defensible insurance decisions.
By Nicole Stone
Early in my career, I worked with a board of directors that insisted on enforcing the rules and regulations strictly as written, without any consideration for whether enforcement was reasonable, necessary, or whether the rule was enforceable. This board would gather every Thursday at 9:00 am and join me on a walk of the community strictly checking for violations. While this may at first seem like a great objective, what ended up happening was the snowball effect of wasted time and resources and a general dissatisfaction amongst residents of the community.
Now you may find yourself asking how this could happen, along with many questions centered around the reasonableness and enforceability of rules and how that was allowed to happen in the first place.
First, I want to clarify two things:
1. We are talking about aesthetic rules related to personal design choices in the community as opposed to nuisances or safety issues. As an example, one of the commonly enforced regulations was that there were no more than three potted plants allowed on a porch or entryway.
2. This was quite some time ago before current legislation or immediate access allowed by technology took over. Cell phones and email were available but not utilized as they are today and direct access to information about legality and reasonableness was somewhat limited. All we could do was advise the board of better practices and handle the outcome as it presents.
Why am I using such an old example?
It has been long enough for us to evaluate the lasting effects that this time of enforcement has had on the community. At the time that I took over management of the community, we would have at least 50% owner attendance at monthly board meetings, which often became hostile. This of course impacted the board’s ability to properly conduct the business of the association and created an “us vs. them” mentality in the community. As management, we tried to counsel them on better choices, revising rules and soliciting community input, but that is not the purpose of this article. Rather, let’s examine the long-term effects this type of enforcement can and has had.
(Note: I no longer manage this community, but it is one that I continue to follow.)
Reputation of the Community
I am not going to share the unflattering nickname given to this community but, suffice to say, it had one. Not only that, but I also heard this community called by its nickname by vendors, other management companies, renters in the community, etc.… The lingering reputation of the strong, unreasonable covenant enforcement is still haunting them to this day, some twenty years later. This influences who buys in the community, who wants to be a resident in the community and creates an environment where there are not strong enough community building strategies that can sway away from this reputation, despite ongoing efforts.
Increased Legal Costs
Now that there is more widely available access to resources for residents, both educational and through DORA and other organizations, the community has experienced higher than normal legal expense costs over the years. Everything from consultations with counsel, the facilitated review and discussion of rules and regulations updates, responses to homeowner complaints, council attendance at meetings, etc….
Misapplied Focus
Psychology calls it the red car phenomenon, which explains that once our attention is brought to something, we notice that something more and subconsciously overlook others as we look for reasons to justify our interest. In this case, being laser focused on violations over such a period led to missed opportunities to celebrate the good things happening in the community and properly addressing some maintenance items before they grew into bigger problems. One is likely to agree with me that these two things are of higher importance than esthetic rule enforcement.
Reasonableness
The flowerpot example illustrates the direct effect of this type of rule on residents. Why does it exist? There is not a fire safety issue that I have been made aware of, nor would a reasonable person be concerned that more than three flowerpots would affect the ingress or egress of the entry or patio areas. Rather, someone along the line decided that more than three flowerpots were “too much” clutter and the rule stuck. Put four flowerpots out for symmetry on either side of the entry door? Violation. Five flowerpots to line your railing with annual color? Violation. The purpose of the rule originally, while lost to history, had given way to a justification for a command-and-control approach from the board of directors. The power and authority the rule provided was all that was left.
Resident Wellbeing
No consideration has been given to why residents would want a different option or have a situation that deserves consideration as a variance from the rule. Rather, rules are rules and will be enforced as written throughout the community. It is well-known that gardening is therapeutic and provides grounding in a busy world. Perhaps a rule-abiding resident has need to live in a condominium style community but finds benefit in this activity, they certainly would choose to move into a different community knowing this is the position held by the board.
We could continue to examine additional effects of unwavering rule enforcement in this environment, but I think the message is clear; choosing to strictly enforce existing rules without consideration of the necessity of the rule, a comprehension that situations arise that could require a variance from the rule and resident input serves no one. It certainly does not make a successful community environment. Boards in common interest communities would do well to remember that being flexible and accommodating in the long run is better for the cohesiveness and success of the community.
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Nicole Hernandez has 24 years of experience in the community association industry and has held the PCAM® designation since 2008. A past president of CAI’s Southern Colorado Chapter and national subject matter expert in financial and risk management, she continues to serve through committees in the Rocky Mountain and Minnesota Chapters of CAI.
By Heidi Scanlan
Special assessments are among the most challenging decisions a homeowners association (HOA) board will face. In Colorado, these decisions are not only financial, but they are also governed by statutory obligations under the Colorado Common Interest Ownership Act (CCIOA), the Colorado Revised Nonprofit Corporation Act, and, in some cases, legacy governing documents from pre-CCIOA communities.
Handled thoughtfully, a special assessment can protect property values and ensure long-term sustainability. Handled poorly, it can create financial strain, erode trust, and expose the board to legal and ethical risk.
This article explores the ethical framework behind special assessments through the lens of the how, why, when, and if, providing boards with a practical approach to decision-making that aligns with both legal obligations and community expectations.
The “Why”: Necessity, Not Convenience
Under CCIOA, associations are responsible for maintaining, repairing, and replacing common elements. This authority allows boards to levy assessments to meet those obligations, but authority alone is not justification.
Ethically, the “why” must be grounded in necessity:
Where boards face scrutiny is when special assessments result from avoidable circumstances, such as years of underfunding reserves or deferring known projects.
“A special assessment should never be a shortcut for past financial decisions it should be a response to present necessity.”
While the board may still have the legal authority to act, fiduciary duty under the Colorado Nonprofit Act requires decisions to be made in good faith, with reasonable care, and in the best interests of the association.
The “When”: Timing, Notice, and Owner Expectations
Timing is not just a logistical consideration it is an ethical one.
Colorado law requires budget ratification processes that give owners visibility into financial decisions. However, special assessments often arise outside the standard budget cycle, making proactive communication even more critical.
Boards should ask:
“Owners should never feel surprised by a special assessment only informed.”
For pre-CCIOA communities, governing documents may impose different requirements, including owner approval thresholds or caps. Even when not required, early communication strengthens transparency and reduces conflict.
The “How”: Process Defines Integrity
The process behind a special assessment is where boards demonstrate ethical leadership.
1. Confirm Authority
Before proceeding, boards must ensure compliance with governing documents:
Failure to follow these provisions can invalidate the assessment.
2. Use Objective Data
Ethical decisions rely on credible information:
This not only supports sound decision-making but also aligns fiduciary standards under Colorado law.
3. Evaluate Alternatives
A special assessment should not be the first option; it should be the most appropriate one after considering:
“The ethical question is not ‘Can we assess?’ but ‘Is this the most responsible path forward?’”
4. Ensure Fair Allocation
Assessments must be allocated according to governing documents, typically based on ownership percentages or allocated interests.
Boards should also consider:
5. Communicate Clearly and Completely
Transparency is both a legal requirement and an ethical obligation.
Owners should receive:
“Transparency is not just about sharing information; it’s about building understanding.”
The “If”: Authority vs. Judgment
One of the most important questions boards often overlook is whether a special assessment should happen at all.
Boards should pause and consider:
In some cases, delays may be reasonable. In others, particularly those involving safety or structural integrity, delay may create greater liability.
There is also a governance consideration:
“Just because a board has the authority to act does not mean it should act alone.”
Balancing Fiduciary Duty and Community Impact
Colorado law establishes a clear fiduciary standard, but ethical governance requires more than compliance.
Boards must balance:
A technically correct decision can still create ethical concerns if:
Strong boards recognize that financial decisions affect real people and lead accordingly.
All Things Considered
Special assessments are not inherently good or bad they are a necessary tool within HOA governance.
What defines them is not the assessment itself, but how the decision is made.
By grounding decisions in:
…boards can meet their legal obligations while upholding the ethical standards that build strong, resilient communities.
“The ultimate goal is not just to maintain the property it is to maintain trust.”
Final Thought for Boards
“If you can clearly explain the decision, support it with data, and defend it as fair, you are likely on solid ethical ground.”
By Kim Kichler, Hall Ryan Construction
Colorado’s increasing wildfire risk—driven by climate conditions, population growth in fire-prone areas, and recent catastrophic events—has prompted a major shift in how the state approaches community design and construction. The adoption of the Colorado Wildfire Resiliency Code (CWRC) in 2025 represents one of the most significant policy changes affecting housing in decades. Although the CWRC primarily targets new construction and major renovations, its ripple effects are already being felt in existing HOAs, where governance structures, architectural rules, and shared responsibilities intersect with evolving regulations, insurance expectations, and broader community-wide impacts.This article examines how the CWRC works and, more importantly, how it is likely to impact existing HOA communities across Colorado.
The Policy Framework Behind the CWRC
Created through Senate Bill 23-166, the CWRC establishes statewide minimum standards for wildfire-resistant construction and defensible space in designated wildland–urban interface (WUI) areas. Local governments must adopt regulations meeting or exceeding these standards by July 1, 2026.
The code emphasizes two core strategies:
Although retrofits are not broadly required for existing homes, the CWRC sends a clear signal: properties that do not meet modern wildfire resilience standards represent elevated risk.
Insurance Market Transformation: Rising Premiums and Risk-Based Pricing
One of the most immediate impacts of the CWRC is a sharp increase in insurance premiums across wildfire-prone regions. Insurers now rely on highly granular risk assessments, including:
Properties aligned with CWRC standards tend to receive more favorable pricing, while those that are not face significantly higher premiums. For HOAs with master insurance policies, risk is shared—meaning a single high-risk feature can increase costs for an entire community.
Why Existing HOA Communities Are Uniquely Affected
HOAs play a central role in regulating community design and maintenance through covenants, conditions, and restrictions (CC&Rs). These often govern: exterior materials, landscaping standards, fencing and shared structures and maintenance responsibilities. This means that even when the CWRC does not directly mandate retrofits for existing homes, HOAs become the frontline enforcers—or obstacles—of wildfire mitigation practices.
Key Areas of Impact on HOAs: Conflicts Between Existing Covenants and Fire-Resilient Design
Many HOA rules were created with aesthetic priorities that now conflict with wildfire safety, such as requirements for wood fencing, combustible decking, or dense landscaping. As homeowners seek to upgrade for safety or insurance compliance, HOAs may need to amend governing documents.
Indirect Pressure to Retrofit
Although retrofits are not broadly required, multiple forces are driving “voluntary” upgrades: insurance requirements for defensible space and fire-resistant materials, local regulations tied to permits or inspections and liability concerns for HOA boards. As a result, many HOAs are adopting mitigation standards, requiring inspections, and encouraging upgrades during renovations.
Governance and Cost Allocation Challenges
Wildfire mitigation introduces complex financial questions:
To address these challenges, HOAs may need to increase dues, levy special assessments, or reallocate reserve funds.
Evolving Architectural Review Standards
HOA Board of Directors must shift from purely aesthetic decision-making to incorporating fire risk. This includes approving ignition-resistant materials, revising landscaping guidelines and balancing design preferences with safety.
Financial and Market Implications
The combined effect of CWRC standards and shifting insurance market dynamics is creating tangible financial pressure for HOAs. Associations are facing rising premiums and deductibles, special assessments for mitigation projects, increased dues, and the need to reallocate reserve funds toward wildfire resilience, all of which place new demands on budgeting and long-term financial planning. Insurance availability is also becoming directly tied to property values. Homes that are difficult to insure may face reduced demand and financing challenges, while resilient communities may gain a competitive advantage in the real estate market.
Liability and Governance Considerations
The CWRC establishes a recognized benchmark for wildfire risk management, which may influence how liability is evaluated. HOA boards, property managers, and homeowners could face increased scrutiny if known hazards are not addressed. Maintaining adequate insurance coverage is a core fiduciary responsibility for HOA boards. As insurers impose stricter requirements, associations must demonstrate proactive mitigation efforts to secure and maintain coverage.
The Path Forward
To navigate this evolving landscape, HOA communities and homeowners should:
Suitable alternatives :
The Colorado Wildfire Resiliency Code is reshaping more than building practices—it is transforming the economics, governance, and risk profile of entire communities. While its direct mandates focus on new construction, its indirect effects are already redefining expectations for existing HOA communities. Insurance markets, responding to escalating wildfire risk, are accelerating this transition—often faster than regulation alone. As a result, wildfire resilience is no longer optional. It has become a prerequisite for insurability, financial stability, and long-term viability in Colorado’s wildfire-prone regions.
The QR code below indicates in red (representing Moderate and High Fire Intensity classifications) on the Colorado Wildfire Resiliency Code (CWRC) map will be enforced to Class 2 structure hardening requirements for new construction and major renovations and additions.
Scan to see the CWRC map
About the Author: Kim Kichler is a Business Development Representative at Hall Ryan Construction, where she focuses on helping clients navigate construction and restoration solutions. Hall Ryan Construction is a locally and privately owned and operated, Class A licensed general contractor specializing in commercial, HOA, and multi-family construction projects, delivering comprehensive building and restoration services across complex property types.
By Tressa Bishop, Alliant Insurance Services
Condo and HOA insurance hit the news headlines much more frequently in the past five years than the decade before. Between the COVID-19 pandemic impacts, several catastrophic weather-related losses in various regions of the country, and the Marshall Fire closer to home, carriers adjusted their rates, insurable values, premiums and deductibles to ensure profitability and (hopefully) avoid a downgrade by the rating agencies that track the financial health of carriers.
Although some carriers exited the community association insurance niche altogether, possibly having sustained losses too large for their actuaries and reinsurance partners to get comfortable with, the painful adjustments mentioned above worked. The ship began to right itself in early 2024 with commercial property markets softening and carriers offering improved terms, reduced premiums and more reasonable deductible options.
With improved carrier capacity and underwriters who are hungry to write new business, now is the time to perform a thorough review of your community’s insurance and risk management program. Each typical coverage line in the insurance program may have room for improvement and if you don’t ask, you may not receive all that is available in today’s market.
Property Insurance
For associations required to carry insurance on the community’s residential buildings, the property premium is typically the biggest piece of the insurance pie and the insurance budget line item ranks #1 in highest percentage of monthly assessment dollars paid by owners.
Check to ensure your current reconstruction classification fits the community. If there are only vertical boundaries between the units (townhome style with no upstairs or downstairs neighbors in any building), Row House may be a more appropriate classification than Condominium. The datasets for the most used replacement cost estimate software providers are updated multiple times a year and some locations have changed over time. The integration of AI has been very useful in this field and if your community has been with the same carrier or broker for years, with no one has “looking under the hood”, there may be an adjustment that can benefit the association.
In addition, if your community is only required to insure to the interior unfinished surfaces of the floors, walls, and ceilings (“bare walls” coverage), with all other improvements covered by each owners’ personal insurance policy, the reconstruction classification may be able to be amended to exclude interior improvements.
Check to see if blanket building coverage is available. Carriers who previously wouldn’t consider offering blanket coverage are trying to stand out from the crowd and may be able to offer this enhancement. In a very simplistic example, blanket building coverage would mean that the entire property limit for all buildings would be available at the time of loss, regardless of how many buildings were damaged instead of being limited to the scheduled amount per building shown on the Statement of Values (SOV) on file with the carrier. This used to be common with nearly all carriers but was more difficult to obtain during the most recent hard market cycle.
Check to see if a lower wind or hail deductible is available.Increased competition and a few years of lower-than-usual hail activity along the front range have caused a favorable shift in the wind or hail deductibles offered by many carriers. For the majority of communities in Colorado, the wind or hail deductible is a percentage of the total insurable value of each damaged building or of the entire property schedule, regardless of how many buildings are damaged. It is not the percentage deductible multiplied by the cost of the new roofs or the claim amount.
For a community with property coverage limit of $20,000,000 and a 5% wind or hail deductible, the association’s deductible at the time of loss is $1,000,000. If there are 100 owners in the association, each owner may receive a special assessment to cover that deductible in the amount of $10,000. Every percentage point reduction equates to a lower potential special assessment following a covered loss.
As with everything, there are exceptions, so the information provided herein assumes no large open claims or problematic building components (such as dated and fire-prone electrical panels or polybutylene plumbing). If your association falls into either of those categories, it is imperative to work with your selected broker to make an action plan as early in the policy term as possible to ensure a more favorable next insurance renewal.
Boards play a crucial role in the risk management strategy for their associations. Partner with your specialized insurance broker and arm them with the information to improve the insurance program and take advantage of the current market conditions.
Author Bio: Tressa Bishop, Senior Vice President with Alliant Insurance Services, is a CAI Community Association Risk Management Specialist (CIRMS®) who fiercely advocates for clients year-round. A staunch negotiator and passionate educator, she works closely with board members, HOA attorneys, and community managers to ensure a robust risk management program to protect the interests of the communities she serves.
By Brad Henderson, Network Insurance Services
It usually starts with an email no property manager wants to open:
“Loss Control Recommendations – Response Required.”
Inside is a report outlining items the association must address—often within 20–30 days. Grills need to be removed from balconies. Trees must be trimmed back. Concrete is cracked and considered a trip hazard. Electrical panels may require evaluation.
For many communities, this feels less like a routine inspection and more like an unexpected project list—with real cost, coordination, and urgency.
And the stakes are high. Failure to respond to recommendations may jeopardize coverage or even trigger a midterm cancellation.
Why Carriers Conduct Inspections
While these inspections can feel disruptive, they are rooted in a shared goal: preventing claims before they happen.
Carriers use inspections to identify conditions that commonly lead to losses—fire hazards, trip-and-fall exposures, deferred maintenance, and aging building systems. For communities, fewer claims mean fewer disruptions, safer properties, and more stable insurance costs.
Common Pain Points
Unexpected Costs
Inspections often uncover items that weren’t budgeted—tree trimming, siding repairs, or concrete work—that can quickly add up. Carriers typically require a response within 20–30 days. Key insight: they are not expecting everything to be completed within that timeframe—they are expecting a clear action plan outlining what will be done and when. For many items, completion is typically expected before the next renewal. Some carriers now require managers or board members to complete inspections via mobile apps, shifting responsibility onto the community. A common point of friction occurs when the loss control representative requests access to a unit to photograph items like electrical panels or plumbing. This can create logistical challenges and resident pushback. While certain components may be the unit owner’s responsibility, failures in these systems can lead to losses impacting the association. Failure to respond—or demonstrate progress—can result in cancellation or non-renewal.
The 30-Day Deadline
Self-Inspections
Unit Access During the Inspection
Risk of Midterm Cancellation
Who Is Actually Making the Decisions
The loss control representative identifies issues and provides recommendations, but they do not have final authority over coverage.
That authority sits with the underwriter, who ultimately determines:
This distinction matters. While reports can feel definitive, there is often room for discussion. When provided with context and a reasonable plan, underwriters can and do modify requirements.
How to Prepare and Respond
Conduct a Pre-Inspection Walkthrough
Respond with a Clear Action Plan
For communities with deferred maintenance, a current reserve study can be a valuable tool. It demonstrates awareness, planning, and funding—helping shift the narrative from unaddressed risk to managed improvements.
Prioritize Life Safety Items
The Role of Your Insurance Broker
Proactive communication before the inspection can help reduce surprises. The community’s broker can provide context to the carrier around common exposures and community-specific realities.
Without that context, the inspection may be the first time the carrier identifies an issue, often resulting in stricter recommendations.
Turning Inspections into an Advantage
Loss control inspections don’t have to be viewed as a burden. They provide a third-party evaluation of risk by a trained loss control professional—focused on identifying and reducing exposures before they become claims.
At the end of the day, both the carrier and the community should be working toward the same goal: preventing losses before they happen.
Communities that take a proactive approach—preparing for inspections, communicating effectively, and demonstrating a clear plan to address risks—tend to experience smoother inspections, fewer surprises, and more favorable long-term outcomes.
The best loss control inspections don’t create surprises—they confirm a plan that’s already in place.
Brad Henderson is a Partner and Executive Vice President at Network Insurance Services, focused on serving community associations. He works alongside property managers and HOA boards to simplify the insurance process, reduce surprises, and help communities make more informed decisions around risk and coverage.
By CoCo Criste, Lifetime Reconstruction
When a community takes on a large capital improvement project, one of the most important decisions isn’t just what work needs to be done; it’s who should be trusted to manage and execute it.
There are a lot of professionals involved in these types of projects, including contractors, engineers, consultants, and owner’s representatives, but not all of them are equally equipped to lead. The most qualified expert to manage a project is the one who can bring all of those moving parts together and keep them aligned from start to finish.
So how do you determine who that person is?
Prioritize Relevant Experience Over General Experience
It starts with experience, but not just general experience. The right project manager has experience with projects that look like yours - multifamily communities, occupied buildings, phased construction, and coordination with boards and community managers. These environments are complex. They require someone who understands not only construction, but also the people and communication side of the project.
A qualified project manager knows how to balance technical knowledge with real-world execution. They understand how systems are built, where problems typically arise, and how to plan ahead to avoid them. Just as importantly, they know how to communicate those details in a way that boards and homeowners can understand.
Evaluate Communication, Transparency, Ethics, and Accountability
Communication is often what separates a good project from a frustrating one. The most qualified experts are ethical, consistent, proactive, and transparent. They don’t wait for problems to surface, they anticipate them, communicate early, and offer solutions. During the selection process, you can usually see this right away. Are they professional and organized? Are they willing to walk the property and provide insights beyond the initial scope? Do they answer questions directly? Are they clear? Do they follow through? Those early interactions are a strong indicator of how the project will be managed.
Ethics also play a critical role especially when it comes to change orders. While some changes are unavoidable in construction, excessive or unexpected change orders can be a sign of poor planning or, in some cases, intentional underbidding. Have you been a victim to a low bid and at the end of the project the total cost was 20%-30% higher than the highest bid? A qualified contractor and project manager approaches this differently. They take the time upfront to clearly define scope, identify potential unknowns, and communicate risks early. When changes do arise, they are handled transparently, with clear documentation and justification never as a surprise.
Another important factor is how they approach accountability. The right person isn’t just there to oversee the work they take ownership of the outcome. They hold the team to a high standard, stay involved in the details, and don’t pass issues off when things get challenging. They also bring a level of integrity that builds trust with both the board and the residents.
It’s also worth considering how that expert evaluates value. A strong project manager isn’t focused solely on cost; they’re looking at the bigger picture. They help guide decisions that balance upfront investment with long-term performance, maintenance, and risk. In today’s environment, that includes understanding things like insurance implications, material performance, lifecycle costs, and the value of a strong warranty.
Finally, the most qualified expert is someone who makes the process easier, and not more complicated. Large projects can feel overwhelming for boards and communities. The right project manager brings clarity and confidence to the process. They keep things moving, keep stakeholders informed, and ensure that expectations are met at every stage.
At the end of the day, qualifications go beyond titles or certifications. The most qualified expert is the one who combines integrity, experience, communication, and accountability with the ability to lead a project from start to finish. When that person is in place, everything else tends to fall into line.
About the Author:
CoCo Criste leads community engagement and multifamily/commercial business development at Lifetime Reconstruction, a division of Lifetime Home Remodeling. Lifetime specializes in large-scale exterior renovations and partners with HOAs and community managers across Colorado to deliver high-quality, well-managed projects. The company has been awarded the Better Business Bureau’s Torch Award for Ethics twice consecutively, reflecting its commitment to integrity and doing things the right way even when no one is looking.
By Devon Schad, Schad Agency
“The most expensive assumption in an HOA is believing someone else’s insurance will cover it.”
HOA insurance isn’t one policy. It’s two policies that have to work together.
At a high level, the association insures the building and common elements. Owners handle their personal property and some portion of the unit. The issue is what the association covers inside the unit can vary a lot, bare walls, original construction, all-in, or somewhere in between. And that’s where things go sideways.
Most claim issues aren’t because there’s no coverage. It’s because no one was clear on who was responsible. That’s something Associations can fix.
One of the best things a Board can do is create a simple maintenance and insurance responsibility chart. Spell out who handles what from the structure, interiors, and systems. Take the guesswork out. If people have to interpret it, you’re already in trouble. That chart should tie back to the CC&Rs. Not just the insurance section, but the definitions too for what is a unit, what are common elements, what falls in between. A lot of times those definitions drive responsibility more than anything else.
If it’s not clear, don’t guess. Get the association’s attorney involved and clean it up now. It’s a lot easier to deal with on the front end than during a claim when everyone is looking for answers.
Associations can also make life a lot easier at claim time with a few basic steps. Have a clear deductible policy so owners understand how that gets applied. Have a simple claim process for how to start a claim, who to call, how it gets reported, what to expect. When those things are defined ahead of time, claims go a lot smoother. Boards that do this well aren’t just handling insurance better. They’re reducing conflict, setting expectations, and avoiding a lot of unnecessary headaches.
Owners still need to do their part. Review the CC&Rs. Get a copy of the master policy or COI. Then sit down with your insurance agent and make sure your coverage lines up with how the association is set up. If your personal agent hasn’t asked for these documents they may not be the best to advise you on covering any gaps. When it works, the two policies fit together the way they should. When they don’t, that gap lands on someone and it’s usually the owner.
Most insurance problems in HOAs aren’t about coverage. They’re about confusion. The Associations that remove that confusion ahead of time are the ones that handle claims the best. It doesn’t take much just clarity, consistency, and communication. Put it in writing, make sure everyone understands it, and revisit it as things change.
Because once a loss happens, you’re no longer planning, you’re reacting!
About the Author: Devon Schad currently serves as President of the Board of Directors for the CAI Rocky Mountain Chapter and is a CAI Educated Business Partner. He is the owner of the Schad Agency, a family-owned insurance firm established in 1976 that specializes in insurance solutions for community associations. Devon works closely with HOAs, property managers, and attorneys on insurance program design, including coverage structure and insurance provisions within CC&Rs. He regularly contributes articles to the industry and teaches certified CMCA education courses focused on risk management and insurance for community associations.
By Chris Drake, Drake Law, PLLC
Many HOA boards discover too late that insurance is not designed to pay for aging roofs, deteriorating plumbing, or neglected building systems. Understanding the difference between maintenance and covered loss can prevent major financial surprises for community associations.
“Insurance protects against sudden events—not the predictable consequences of aging buildings.”
BOARD TAKEAWAYS • Insurance covers sudden and accidental damage, not gradual deterioration. • Aging roofs, plumbing corrosion, and worn building systems are maintenance issues. • Deferred maintenance can lead to denied claims and costly special assessments. • Preventative maintenance and reserve planning reduce financial risk for communities.
COMMON CLAIM DENIAL SCENARIOS FOR HOAs • Aging roofs leaking due to wear and tear • Long-term plumbing leaks caused by corrosion • Electrical failures tied to outdated panels • Water intrusion from deteriorated flashing or sealants • Structural damage caused by years of deferred maintenance
One of the most common misunderstandings among homeowners and condominium associations is the role insurance plays in protecting property. Many property owners assume that if something breaks, deteriorates, or fails, the association’s insurance policy will cover the cost of repair or replacement. In reality, insurance is not designed to serve as a maintenance plan. Rather, it is intended to cover sudden, accidental, and fortuitous losses—not the predictable consequences of neglect or deferred maintenance.
For homeowners’ associations (HOAs), this distinction is particularly important because HOAs are responsible for maintaining common elements such as roofs, exterior walls, plumbing systems, and shared mechanical components. When these systems deteriorate over time and eventually fail, the resulting damage is often not covered by insurance. This can leave associations and property owners facing significant unexpected costs.
Insurance policies are built around the concept of fortuity. In simple terms, insurance protects against events that are unexpected and accidental such as hailstorms, fires, sudden pipe bursts, or wind damage that causes immediate harm to property.
Maintenance issues, however, are fundamentally different. Roofs age. Plumbing corrodes. Sealants deteriorate. Electrical systems become outdated. When property components fail due to wear, deterioration, or lack of upkeep, insurers typically deny coverage because the loss was not accidental; it was the predictable result of aging or neglect.
Most property insurance policies include exclusions for wear and tear, deterioration, rust, corrosion, and continuous or repeated seepage or leakage of water over time. Coverage is triggered by a sudden event, not the gradual failure of a system that should have been inspected, maintained, or replaced earlier.
For HOAs, the implications are significant. Associations are charged with maintaining common elements and protecting the structural integrity of the community. Deferred maintenance increases the likelihood of property damage and the risk that insurance coverage will be denied when problems eventually surface.
When claims are denied due to maintenance-related issues, the financial burden shifts to the association and its members, often resulting in unexpected special assessments and difficult decisions for community boards.
The most effective way to avoid these outcomes is proactive maintenance. Regular inspections, timely repairs, and proper budgeting for capital improvements help ensure that building systems remain functional and insurable.
Insurance remains an important safety net when genuine covered losses occur. But it is not a substitute for responsible property management.
When a Claim Is Denied
When an insurance claim is denied, particularly when the carrier attributes the damage to wear and tear, deterioration, or lack of maintenance, it is often worthwhile for associations to consult an attorney experienced in insurance coverage matters. In many situations, the true cause of the loss may involve a covered event, even if deterioration is also present. An experienced insurance lawyer can help evaluate the denial, review policy language, and determine whether the insurer properly investigated and applied the policy terms. Early legal guidance can make a meaningful difference in preserving coverage and protecting the financial interests of the community.
About Drake Law, PLLC
Drake Law, PLLC is a Colorado law firm focused on representing policyholders in property insurance disputes and bad faith claims. The firm works with homeowners, contractors, and community associations to navigate complex insurance claims, evaluate coverage issues, and ensure insurers honor their contractual obligations.
