One of the primary functions of commercial property insurance is to provide financial means to repair buildings that are damaged due to catastrophic losses such as wind and hail storms.
Commercial building insurance is not designed to be used as a “fund” to repair building roofs that are not adequately maintained. Careful and consistent monitoring is required to ensure the roof functions correctly—not only to keep the building dry, but to properly vent attic air based upon seasonal climate temperature changes.
Making sure your apartment or condominium operation has adequate financial means to maintain your buildings is a critical part of your operation. Placing appropriate financial savings aside on a regularly scheduled basis is a great way to complement your insurance program and the risk management of an apartment or condominium operation.
For apartments that use property management companies, be sure they are monitoring building maintenance and actually have a building repair checklist and procedures in place. A portion of rent should be allocated each month to be used to maintain and repair building roofs that require replacement.
For condominiums, a condominium board is responsible for operating, maintaining, repairing and preserving the common property, which includes resident buildings.
As a part of the operating budget, the board should establish a budget plan for current and future repairs, replacement and improvement of major components of the property, such as roofs, balconies, the exterior facades, elevators and boilers.
The budget should project expenditures for major repairs and replacement of property components for a longer period, such as five years.
To offer additional clarification of the purpose for building insurance, please contact our office. We’re always available to help you with your business insurance needs. We can be reached at (770) 339-0447 or fill out a business quote form today!