State laws and document restrictions designed to insure owner access to information and input in the decision-making process often impede disaster recovery. For example, the use of reserve funds in an emergency is hampered by laws requiring prior approval of a majority of the total voting interests. If necessary, documents should be reviewed and amended to remove barriers to recovery and provide boards with emergency powers. Areas of concern include:
Maintaining adequate insurance is easier said than done. Nevertheless, the documents must be examined in concert with the law to ensure that the scope of coverage satisfies both. Notwithstanding the fact that the Condominium or Cooperative Act may exclude from coverage various unit components and finishes [floor coverings, wall coverings, ceiling coverings, a/c units, built-in cabinets], a provision in the declaration requiring that the association provide coverage for “all improvements” installed by the developer may impose liability on the association for failure to maintain such coverage.
In addition to basic coverage, Andrew and Opal taught us that some major sources of economic loss, such as landscaping, exterior building paint, building foundations, walkways, pools, tennis courts, and satellite dishes, are not normally covered by insurance. While excluded from basic coverage, some areas of potential loss can be covered for a small additional premium. None are as important as “ordinance or law” exclusion.
Ordinance or law exclusion states that the insurer will not pay for loss or damage caused directly or indirectly by the enforcement of any ordinance or law: (1) regulating the construction, use or repair of the property; or (2) requiring the tearing down of any property, including the cost of removing its debris. This exclusion is aimed at the application of building codes that may require more expensive reconstruction material, installation, design or methods than those used in the existing building. It may also apply to environmental laws that require elaborate and expensive decontamination processes, or upgrade construction practices in hurricane and flood zones.
For example, following Hurricane Andrew, a Dade County Ordinance required that a number of partially damaged buildings [considered to be damaged by 50% or more] could be restored only if they were elevated to a specific height above sea level. Under such circumstances, the cost of elevation plus repair of the damage generally would exceed the limit of building insurance, unless there was coverage afforded under the rider to the base policy.
Many communities were left waterlogged by Hurricanes Andrew and Opal, only to find that their basic policies did not cover water damage from flooding. Effective October 1, 1994, all condominiums in flood zones, must purchase flood insurance equal to eighty (80%) percent of the value of the building, not to exceed a total limit of $250,000 per unit. New flood policies include coverage for foundations. The entire building is covered under one policy, including both the common elements and the individual units.
For many owners and managers in the Florida Panhandle, the greatest loss wasn’t property but, rather, income from lost rentals. Business interruption insurance is essential for owners or managers who rely upon vacation rentals for their livelihood. Managers, particularly, need to ensure that their business interruption coverage is not just for the premises where they maintain their offices, but also for the communities where they manage rental units.
Many homeowners failed to maintain coverage for their personal effects and building upgrades within their homes. It is recommended that homeowners residing in mandatory membership communities maintain homeowner coverage with at least the following endorsements:
- Loss Assessment Coverage - Protects against special assessments levied by boards to cover losses from covered peril, when the primary coverage is inadequate.
- Water Seepage Coverage - Covers water damage from wind-driven rain or water entering from a source other than an opening in the building (e.g. through stucco or around window frames.)
- Additions, Alterations, Improvements and Betterments Coverage - Covers upgrades, as well as real property added by the unit owner. This endorsement is often available with all risk coverage, without a water seepage exclusion.
Even assuming that one maintains adequate coverage, there is a risk that not every insurer will survive extraordinary claims. Andrew brought many insurance companies to their knees. Careful consideration must be given to the financial strength of the insurer. Keep in mind that the lowest quote is not always the most secure coverage.
It is imperative that a reserve fund be maintained for contingencies and to cover deductibles.
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After The Storm: Implementing A Disaster Plan
Part II
by Gary A. Poliakoff, J.D.
“This article is based upon first hand experience assisting the victims of Hurricanes Andrew and Opal with their recovery efforts. These, then, are the ‘Lessons of Andrew and Opal.’”
LESSON FOUR - RESPOND QUICKLY AFTER THE DISASTER
A quick response in accordance with preconceived plan will minimize damage and promote a speedy recovery. After the disaster, associations should take steps to:
Account for residents - Knowing the whereabouts of all residents greatly enhances emergency response time following a disaster. In a situation such as a hurricane, in which there is advance warning, a committee should ascertain which residents are remaining in the community and which are evacuating. A temporary destination address and phone number should be obtained from those who are evacuating. Once disaster strikes, the board’s first action should be to direct emergency medical assistance to any residents in need.
Survey the property and identify areas needing priority attention - Depending on the nature and extent of the damage, it may be necessary to evacuate or shore-up a structure and obtain security to protect against criminal acts and/or prevent further damage. All contacts with contractors should be made in advance, as part of the disaster plan.
Establish lines of communication - It is imperative to identify, in advance, a source outside the community to coordinate communications among community leaders following a disaster. The designated person may be a board member’s relative located in another city or a professional engaged by the community for that purpose. Regardless, every officer and director should be instructed to contact the communications coordinator within a fixed time period after the disaster and provide him or her with an address and phone number. The communications coordinator can also be a vital link between the board and the residents. Efforts should be made to locate all owners.
Dispel rumors by disseminating necessary information - After establishing a means of communication, every effort should be made to meet with owners to discuss the situation and inform them of the actions in progress to protect their property and respond to their needs.
Following Hurricane Opal, one astute manager began preparing a pre-recorded daily update accessible to unit owners who dial in to a given phone number.
Contact employees and vendors - The communications coordinator should maintain a detailed list of all vital information and services utilized by the community. This should include:
- A list of all vendors and professionals employed by the community (accountants, attorneys, insurance agents, etc.);
- Copies of all outstanding contracts, bank accounts, locations of all community funds (including CDS and/or other investments), and insurance policies; and
- The names of the building’s designers to use as a source of back-up for as-built plans and specifications.
It may be necessary to suspend or cancel ongoing contracts, such as pool and lawn services, following a disaster. Contracts should be reviewed to insure that in the event of a disaster, services can be suspended without obligation on the part of the Association.
Ensure protection of persons and property - Following Andrew, looting was widespread in some areas. It may be necessary to contract for private security when police are unavailable.
LESSON FIVE - HASTE MAKES WASTE IN RECONSTRUCTION
Within hours of any disaster, the affected community will be besieged by companies and individuals looking for work and/or offering disaster recovery services. This group will consist of qualified professionals, ranging from public adjusters to companies specializing in disaster recovery. The larger of these companies will arrive decked out in color coordinated uniforms, large debris removing equipment and even helicopters. Interspersed among the new arrivals will be the con men and profiteers who prey upon the misfortune of others.
While it is very tempting, when confronted with what initially will appear to be an insurmountable task of reconstruction, to sign the first contract stuck in your face, experience has shown that these quick solutions are formulas for disasters of greater magnitude than those already suffered. No greater application exists for the old adage that “haste makes waste” than in these situations. The best advice is to just say no and stick to your disaster plan which, hopefully, will include a plan that anticipates the five (5) phases of reconstruction:
- Project planning/scheduling;
- Construction bidding;
- Contract negotiations;
- Construction/rehabilitation; and
- Project completion/close out.
There are intervening steps you should take which may require contracts of short duration and for specific purposes. Even these contracts should be reviewed to insure that proper precautions are taken. The most urgent needs immediately after the disaster will be:
- Securing the community from acts of vandalism and looting;
- Removal of storm debris; and
- Shoring up building structures and closing openings in order to mitigate against further damage.
Once conditions stabilize, the disaster recovery team will be in a position to meet with professionals trained in disaster recovery, such as:
- Architect/Engineer - Responsible for assessing the damage, preparing plans and specifications in accordance with new building codes, assisting in selection of construction manager and defining other reconstruction requirements.
- Construction Manager - Oversees selection of general contractor, competitive bidding and administrators, directs and coordinates pay requisitions, change orders and all other activities of the parties, and resolves disputes.
- General Contractor - Employs and supervises laborers, supplies materials and builds project in accordance with architect’s/engineer’s plans and specifications, under the direction of the construction manager.
- Attorney - Reviews construction contracts to insure adequate assurance of job performance and warranties, and compliance with applicable lien laws.
- Public Adjuster - In some instances, the assistance of an independent public adjuster may be beneficial when dealing with the nuisances of an ambiguous insurance policy. While most adjusters will work for a fee based upon a percentage of the insurance proceeds, when the scope of assistance required is limited to specific items, the fee should be adjusted accordingly.
Review your condominium documents; particularly, the “repair after casualty” section of the insurance provision. It is not uncommon to find language such as the following:
- Estimates of Costs - Immediately after deciding to rebuild or repair damage to property for which the association is responsible, the Association shall obtain reliable and detailed estimates of the cost to rebuild or repair.
- Construction funds - The construction fund shall be disbursed in payment of such costs in the manner required by the board of directors of the association upon approval by an architect qualified to practice in Florida and employed by the association to supervise the work.
Where the aforesaid provisions exist in your documents, contracting for reconstruction prior to obtaining a scope of work will be contrary to both the association’s best interest, and the obligations set forth in the documents.
In order to respond to an emergency, the association may need to obtain a short term loan. Absent a restriction within the documents, not-for-profit community associations can borrow; however, they, generally, cannot pledge the condominium property as security. Most banks with which the association does business will approve a commercial line of credit secured by the association's accounts and/or assessment and lien rights. The association also may obtain a small business administration loan that is available to victims of disaster, generally, at lower interest rate. Of course, reserve funds can also be utilized if approved by a majority of the total voting interest.
LESSON SIX - SETTLING THE INSURANCE CLAIMS
On television, within minutes of a disaster, an insurance adjuster appears on the scene with checkbook in hand. In the space of a thirty second commercial, all claims are resolved, and the victims shower praise on the company’s quick response and positive attitude. While it does occasionally happen, it is an unlikely scenario. In a major disaster, it is rare, if not impossible, to fully assess the damages within such a short time frame. In fact, the association should not seriously entertain a settlement until the full scope of work is known and costs ascertained.
Immediately following the disaster, it will be necessary for the association to secure the property to mitigate against further damage and clean-up debris. Most insurers will offer advances for this purpose. As long as the association signs no releases or settlements, there is nothing wrong with accepting such advances.
Insurance policies need to be examined to ensure that “proof of loss” forms are filed within the time limit required under the policies. As a general rule, flood policies require that proof of loss be filed within sixty days of the flood.
Disasters do not respect geographic location or economic status and can occur at any time. Their effects can last for years; however, pre-disaster readiness will go a long way toward promoting recovery.
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Hey...Let Me In!
How to Obtain an Entry Pass
When a mandatory evacuation is declared, the barrier island becomes extremely vulnerable. Armed with the knowledge that many of the domiciles are vacant, certain human insects will attempt to gain unobstructed access to the temporarily “easy pickings”. Acknowledging their responsibility to secure the homes of those residents that heed the call to evacuate, the City of Fort Lauderdale strengthens the police presence throughout the barrier island. While all beach exits are open to traffic during an evacuation (leaving is easy), return access to the island is heavily restricted (returning is difficult). To deter looting and other criminal activity, police stationed at entrance checkpoints carefully scrutinize the identification of anyone attempting to return to the island, verifying credentials as either a resident or an owner/operator of a barrier island concern. If you can’t prove that you either live or work here, you won’t get in!
Access points to get to the beach residential and business areas:
- S.E. 17th Street
- East Sunrise Blvd.
- 4200 N. A1A
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BARRIER ISLAND
ENTRY PASSES | |
No access will be allowed at these locations:
- East Oakland Park Blvd.
- East Las Olas Blvd.
Who is authorized:
- Residents
- Business owners/operators
- Emergency medical personnel
- Law Enforcement personnel
Entry requires approval. What is needed for proof:
- Light bill
- Drivers License
- Water bill
- Tax bill
- Proof of employment
- or similar verifyable identification
The City distributes entry passes to residents and business owners of the barrier island. Passes from the 2001 hurricane season are still good. If you have a pass from last year, you do not need a new pass.
Contact the Fort Lauderdale Police Department’s Community Support Division (CSD) at (954) 828-6400 and prepare to make available the following verifyable identification that you reside or work east of the Intracoastal Waterway (ICW):
- Light bill
- Drivers License
- Water bill
- Tax bill
- Proof of employment
- or similar verifyable identification
Attention: Galt Mile Community Association Members! 
Call the FLPD’s CSD (Community Support Division) at (954) 828-6400 if you have a condominium association or civic association meeting so that passes can be distributed in volume (one per family).
To get information concerning returning to the Fort Lauderdale Beach area, simply contact:
- Hurricane Hot Line number: (954) 831-4000
- Mass media (TV, radio, internet, newspapers, etc.) including Web links (see below)
- Fort Lauderdale Police Department web site
- Click Here to e-mail the Police Hurricane Coordinator.
- The Galt Mile Community Association web site - www.galtmile.com (that’s right - right here!)
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Hurricane Vampires
Hurricane season, like any significant source of emotional distress, brings out the best and the worst in us. There are several species of vampire that feed on the misery of the season’s victims. The vast majority, however, resort to one of two popular scams – “cleanup” and “emergency repair”. The opportunities presented by the “cleanup” rip-off are available to anyone with a mottled conscience. Little or no equipment, training, experience or brains are required to participate. The “emergency repair” fraud, while not exactly rocket science, is more effective when supported by the appropriate documentation, equipment and pitch. The scams are also distinguished by their respective “marks”. The “cleanup” generally targets a government - federal, state, local or otherwise. The “emergency repair” scam was designed with you in mind!
“Cleanup Scam”
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| BROWARD COUNTY TRASH SITE - REESE ROAD |
Hurricanes Charley and Frances left the federal government with one of the most expensive cleanup undertakings in Florida’s history. Roughly $1 billion is earmarked to neutralize the mess. This doesn’t include construction, repair, insurance or maintenance - simply hauling off the garbage. In comparison, the Federal Emergency Management Agency (FEMA), the lead agency financing disaster cleanups, spent $800 million to clear “Ground Zero” after the September 11, 2001 assault on the World Trade Center. Additionally, the $1 billion + only represents the 75% - 80% that FEMA covers; the remainder is funded locally. The half dozen legitimate companies that most municipalities contractually retain for this purpose do not maintain the equipment or manpower to clear the myriad tons of debris left in the wake of Charley and Frances. Connected companies like Crowder-Gulf, AshBritt Inc. and DRC Inc. (whose management and directorial boards are peppered with former FEMA Directors like Raymond “Buddy” Young [Crowder-Gulf] and James Lee Witt [DRC Inc.]) hire haulers, packers, grinders and an assortment of nondescript journeymen to take up the substantial slack.
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| TEMPORARY TRASH COLLECTION SITE |
Haulers, for instance, generally net about $5 per cubic yard or roughly $200 for a full load of debris. Deceitful haulers weld a chain link fence across the lower half of the truck bed to impart the illusion that they are carrying a full load when, in fact, they carry just enough to hide the fence. Municipalities select temporary collection sites for the haulers to dump their loads. One acre is needed for every 9,000 cubic yards of material. Because these sites are often stipulated on the fly, they are usually poorly organized and monitored. Loads are registered for payment at the makeshift site entrance. Scammers seek these easy marks, get their load ticket stamped for payment, drive out the rear of the site unobserved and drive around to the entrance again to re-register the same load. During the high pressure environment manned by temporary hires, the same load can be registered for payment a dozen times.  |
UNDERSECRETARY
MICHAEL D. BROWN |
To avoid identification, the culprit drives down the highway to the next town and repeats the routine. If the town has an organized system wherein haulers are limited to certain areas, the haulers are required to clean up their assigned locations before they can move on to the next one. That means picking up the smaller limbs and branches along with the large ones that more readily fill up the truck. After loading all the large tree debris, unscrupulous haulers cut down live trees to expand their loads.
Credentials are often sacrificed for expediency. City officials, not wanting to appear as if they are delaying their town’s recovery, often neglect a verification of references that might be perceived as “bureaucratic red tape”. FEMA Under Secretary of Homeland Security for Emergency Preparedness and Response Michael Brown characterized emergency cleanup decisions as a balance between a community’s need for a quick cleanup versus protecting taxpayer dollars from being wasted on unnecessary or fraudulent debris removal. Referring to this uncomfortable compromise, Brown remarked, “I knew this would be an area ripe for abuse.”
“Emergency Repair Scam”
The Florida Home Builders Association has produced a series of consumer protection TV spots warning of another area of fraud made fertile by the catastrophic aftereffects of Charley and Frances. Fly-by-night contractors have swept into disaster areas like locusts. For example, a Hollywood contractor known as ABC Restoration, Inc. transforms itself into a post-disaster restoration specialist doing business as “Dr. Dry” when the opportunity presents itself. A “Dr. Dry” representative quoted a Lee County couple $6500 - $7500 to repair some screens and their porch ceiling along with the removal of a drenched carpet from an adjacent room. They transferred the carpet to the front lawn and moved some upstairs furniture down to the porch before demanding an additional $12,000 to complete the repairs.
Another woman authorized “Dr. Dry” to bill her credit card $5000 to address the quote for that amount that she was given to remove furniture and wet carpeting from her home. Workers placed 10 large fans and 3 dehumidifiers throughout the house. They also cut holes through her ceiling before demanding another $6500 to complete the work. Despite billing her card for the additional amount, they finished the job and refused to refund her money when asked. “Dr. Dry” struck again in Fort Myers on August 17th. The industry standard for removal of wet carpet is roughly $3 to $8 per square yard. Dr. Dry removed 24 square yards of carpet from a house at the precipitous cost of $22 per square yard.
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ATTORNEY GENERAL
CHARLIE CRIST |
The Florida Attorney General’s Office has charged “Dr. Dry” with violating state price gouging and unfair and deceptive trade practices statutes. Attorney General Charlie Crist admonished, “Florida citizens trying to rebuild their lives are relying on the fair dealing and honest assistance of home renovators. It is infuriating when we hear about businesses trying to profit off of someone else’s misery. We will vigorously pursue this complaint.” Dr. Dry or “ABC Restoration, Inc.” could receive civil penalties of $10,000 per violation per statute, in addition to attorney fees and costs. They will also be responsible for actual damages caused to consumers. With the advent of Hurricane Jeanne, Attorney General Crist warned, “Florida has suffered repeated, extreme weather conditions for the past several weeks. Unfortunately, citizens also need to be aware of the repeated acts of price gouging we have seen before, during and after the other three hurricanes. Overcharging citizens in dire need of goods is not only unacceptable, it is illegal, and we are utilizing all of our legal powers to combat this atrocious act.”
Watch Your Back!
A September 21st release (Number: 1539-131) from FEMA cautions victims of Hurricanes Charley, Frances and Ivan to watch for an increased number of scam artists pretending to be employed by FEMA or other government agencies, such as the U.S. Small Business Administration (SBA). “Consumers should keep in mind that a FEMA or SBA shirt or jacket is not absolute proof of someone’s affiliation with these agencies,” said Federal Coordinating Officer Bill Carwile. “The best way to verify authorized FEMA or SBA personnel is by checking their laminated photo identification card, which they are required to wear at all times.”
One fraudulent scheme involves con artists going door-to-door to damaged homes, or phoning victims, and soliciting personal information such as social security and bank account numbers. FEMA inspectors never require this information. A social security or bank account number is requested during the first phone call to the agency’s teleregistration line. On any follow-up calls, a FEMA representative may ask for the last four digits of your social security number. The agency has also received reports of scammers telling homeowners they need to pay $1,500 to be put on a list to get their home repaired. Other reports have surfaced of persons pretending to be from the SBA and offering to fill out disaster loan applications for a $50 fee. Under no circumstances are FEMA or SBA representatives allowed to accept money. FEMA inspectors assess damage but do not hire or endorse specific contractors to fix homes or recommend repairs.
Galt Mile residents have been receiving telephone calls soliciting business from assorted carpet cleaners, home repair contractors and companies testing for “toxins that may have leeched into your water system” who assert that they will “be in your building” on a particular date. “The Weather Guy” and “Water Safety, Inc.” are unlicensed and not legally incorporated - they are phantoms. Should you be contacted by any of them – or any like them, you might consider hanging up or doing what my daughter does. Ask them to hold on a minute and then continue watching television. The Florida Home Builders Association recommends four intuitive guidelines to prevent being victimized. Homeowners should 1) hire only licensed contractors, 2) insist on a contract, 3) ask for references (preferably from someone you know) and 4) do not pay cash up front - ever. Homeowners can report incidents of price gouging by calling the Florida Department of Agriculture and Consumer Services Hotline: 800-HELP-FLA (435-7352). Or call (800) 342-5869 - Agriculture Law Enforcement. If ANY fraudulent activity is suspected, please report it to the State Attorney General’s office at 1-866-966-7226. The AG’s price-gouging hotline is 1-800-646-0444. If you get hit...HIT BACK!
Don’t leave the house without checking here first. Is it going to rain this afternoon? How about tomorrow...or the next day? Latest local, national, and international forecasts, radar and satellite pics, and storm tracking! See if the slopes are sufficiently white, check the maritime forecast before casting off, or tilt the odds in your favor when planning that picnic. Don’t forget to review the international forecast BEFORE you leave for your vacation.
Emergency Sections are subsequent to the list of weather links. A 
These names are recycled every six years. Therefore, this list of names will be used again in 2012, 2018, 2024, etc. To see the complete six-year list of Hurricane Names, 
Shortage Links
As deadly as rip currents are, 
How to Escape a Rip Current 
CAUTION! - In the aftermath of a disaster, many people understandably rush to enter into contracts with public adjusters and/or “one-stop” contractors who claim they can do it all. Do not allow event-related anxiety to short-change your judgement. Don't hesitate to contact your insurance agent, your attorney, your accountant and any reliable contractors and engineers who have performed work for you in the past! Take bids and check references carefully. A cottage industry of vultures that prey on frightened residents is extremely active in South Florida! 
Insurance Hurricane
October 10, 2004 - The ocean, the sun, soft southern breezes, the beach...relocating to Florida conjures visions of life in paradise. Virtually no one who moves here and few who build here associate their dream with “high risk”. That, incidentally, is how the Galt Mile and the rest of Florida is perceived by insurers and their underwriters. Indigenous catastrophic weather events coupled with attractive retirement demographics are a recipe for “upwardly mobile” insurance rates. Sparring with Charley, Frances, Ivan and Jeanne didn’t help.