Guest Post By Kimberly Lilley, CIRMS, CMCA, Terri Guest, CIRMS, CMCA, and Matthew Gardner, Esq. CCAL
Recently, CAI members gathered in San Antonio to discuss the national landscape for community associations. The conference was the annual CAI Law Seminar, and it brings together homeowner leaders, community legal counsel, insurance leaders, and business partners to look at the year in review and discuss the year(s) to come. It is an opportunity to share experiences and build partnerships with community stakeholders. The conference is held over the span of 4 days, and hosts various education sessions on legal developments, insurance issues, and other trends in community associations.
California always sends a strong contingent to participate in and lead some of the educational sessions. As many participants will tell you, as California goes, so goes the nation, so participants at the CAI Law Seminar are always interested in hearing from those on the front lines of some of the most challenging issues. However, we always have things to learn from communities across the country. Some of our participants provided their feedback below.
Kimberly Lilley appreciated the in depth look at many of the cases that affect her ability to assist her communities from the insurance perspective. She highlighted a few that will directly impact her work as a business partner and recommendations she can make to her coverage:
Blakeney Preserve HOA v. Hanover Insurance – Involved a community in North Carolina suffering wind/hailstorm that caused damage to a roof. The insurance company agreed to pay to fix the storm damage, but the plaintiff wanted them to REPLACE all of the roofs (because they were old). According to Kimberly, that approach did not fly with the courts. Conclusion: Insurance is NOT a Maintenance Contract!
Snell v. United Specialty Insurance – Snell was a landscaper from Alabama who was asked to do a trampoline installation. In the insurance application the landscaper admitted he did NOT perform trampoline installations, so coverage for that was “limited” (aka non-existent). This shifted the burden for a claim due to faulty trampoline coverage onto Snell. If it had been “excluded” coverage in the policy, the burden to prove coverage (or no coverage) would have been on the insurance company. Conclusion: Look at the endorsements and exclusions!
Kimberly suggested that the annual Law Seminar is beneficial to anyone involved in community associations. Aside from the amazing educational opportunities, she also had the chance to plan presentations at the Chapter level, as well as connect and talk to colleagues about other shared projects. She finds that insurance Shop Talk is always a time to learn the trends happening throughout the United States (and beyond) and helps to keep things in perspective, often giving insight into creative solutions to problems.
Matthew Gardner attended his ninth conference to stay up to date on the legal issues, and came back with thoughts on some of the following trends in the legal world:
“Cyber threats” are no longer confined to large corporations and international businesses. Preparing for and handling threats are something that both legal professionals and associations need to be ready to confront. As with natural disasters, it is not enough to be aware of the risks of cyber intrusions. Communities need to be protected before it happens and ready for a response after it happens. Conclusion: Make sure to reach out to professionals just as you would with other services and find a knowledgeable professional experienced in both avoiding and mitigating cyber threats.
Reserve Studies take on new importance. Communities can no longer enjoy the presumption that a completed reserve study and basic insurance coverage guarantee long term stability. Emerging challenges in the regulatory realm (CTA and operational requirements), maintenance needs (inflation and building standards), and insurance markets (CA wildfires) mean that communities will have to start dialogues among their Owners about whether their associations can put plans into place to remain viable thriving communities. Conclusion: Time to take another look at whether your Reserve Study is up to date.
Matthew commented that participants at the annual Law Seminar not only get to see how the law plays out in courtrooms, but they also get a sense for national legislative trends. It helps practitioners get a sense of what your community might expect to see in the coming year. He also learned about the effort that CAI national puts into maintaining a comprehensive database of laws that can be used as the basis for models in other states (like electronic elections and manager licensing). Sharing those strategies can tell you what works and what does not when it comes to legislative trends sweeping the nation.
Terri Guest Summary shared that as many times as you attend the annual Law Seminar, you can still learn new terms or practices in your own industry:
“Hazard creep” is resulting in things being re-classified, like the idea that calling areas 100 year and 500 year flood zones are no longer accurate. Climate change has altered hazard zones across several different types of perils (flood, wildfire, etc.). Conclusion: Be prepared for re-zoning and the affect on coverage.
FEMA has a Resilience Analysis and Planning Tool (RAPT) that is free to use and shows details that are useful to determine wildfire and flood areas, dam inundation, and even stuff like where fire stations are located. Conclusion:– Finding new tools is always a good idea AND SOME ARE FREE!
Terri responded that in addition to learning and staying on top of developing issues, many professionals can also fulfill their continuing education credits by attending the Law Seminar. CE credits are widely available online, but this is the only place she can earn CE credits where the education directly relates to what she does every day. As Brian Kalmensen said while moderating one session, “Even though we are all competitors in this room, we make ourselves better by gathering together in this room.” Attendees learn from each other, and see trends emerging, and make connections we otherwise would not. She finished by saying that although this event is not for everyone, some higher-level managers and management company executives do have great takeaways from this conference.
Anyone interested in learning more about the annual Law Seminar can find it at https://www.caionline.org/events/law-seminar/.
Additionally, CAI just hit a significant milestone—we’ve officially reached 50,000 members. This achievement is a testament to the strength, dedication, and passion of an incredible community of industry professionals and volunteers.
Thank you for being part of this journey! With your continued support, CAI will grow stronger and accomplish even greater things together.
As we celebrate this extraordinary benchmark, we salute your contributions and embrace the countless opportunities ahead. From education and advocacy to networking and innovation, CAI is committed to empowering community associations to build vibrant, thriving communities.
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