HOA Homeowners,
We have had many owners ask questions about insurance coverage, A/C replacements and timing, the likelihood of an assessment to cover HOA expenses as a result of Hurricane sally, etc.  I will try to address the most pressing questions/issues to the best of my ability as follows:

HOA Insurance Policy Coverage
The HOA has building and flood insurance that covers damage to the property in the event of a named storm occurrence such as what was experienced with Hurricane Sally.   Based on feedback from our insurance agent (McCarron), past experience with hurricane Ivan in 2015, and our legal counsel, the policy will cover the water damage/remediation work that is going on with Servpro, the reconstruction repairs to the units by Coastal once Servpro completes their water remediation/demolition work, the replacement A/C/ condenser/heat pumps that are irreparably damaged (and their associated air handlers if necessary) , the elevator repairs, etc.  The policy calls for the unit reconstruction repairs to conform to “builder grade” standards in terms of drywall, trim and paint.  In other words, the repairs cannot cover any upgrades that an owner might like to pursue.  Example – if a unit has carpet that was destroyed due to moisture/mold, the policy will replace the carpet with “builder grade”  carpet.  If for some reason an owner wanted to take the opportunity to upgrade to floor tile, the policy would only cover the cost of the replacement carpet.  The owner would be responsible for the additional cost for the upgrade to tile.
In the event that an owner experienced any water damage to non-building materials such as area rugs, furniture, etc., such materials are considered “contents” and as such are not covered by the HOA building/flood policy.  Any costs associated with the cleaning and/or replacement of unit contents is the responsibility of the owner and certainly can be filed by the owner against his/her individual homeowner policy.

A/C Condenser/Heat Pump Issue
John Schween and Frank Brown have been, and are working with Island Air to inspect A/C and heat pump units on the property.  Note:  If you have already had a HVAC service technician inspect your unit and been given a green light to operate it, please send that information to [email protected] and [email protected] immediately so that we do not incur the cost of “double inspecting”  a unit.  We have also employed a professional engineer experienced in HVAC systems to assist us with the oversight of the A/C/heat pump portion of the project to make sure that we cover all bases appropriately.  This inspection process should be completed this week.  Once the inspection process is completed and the A/C and heat pump repair/replacement inventory is finalized, we will proceed with a repair/replacement schedule.  We will notify all affected owners of the repair/replacement status of their respective units as soon as possible. 

Rental Losses
We are certainly aware that many owners rent their units to help make expenses, and that some owners have lost rental income as a result of the hurricane.  Most individual homeowner policies have some provisions for some amount of recovery of lost rent.  Every owner who has lost rental income as a result of the hurricane should certainly contact their insurance provider for guidance.

Expected HOA Expenses
We are working closely with the insurance company, the insurance claim adjusters, and their oversight consultants in tabulating the total estimated cost to complete all of the repairs to Regency Isle.  The objective is to do whatever we can to get Regency Isle back to “normal” in the most efficient and cost effective manner.
With that said, our building insurance policy deductible for a NOAA named storm is $600,000.  It is likely that we will incur repair and recovery expenses that will meet (or exceed) this deductible amount.  We will have to secure funding from the HOA homeowners to cover this deductible amount at a minimum.   The damage done to Regency Isle by the hurricane affects the entire HOA.  Once we finally know what the final outcome is with regards to the total cost that will be incurred to make repairs to the entire building, and we know how much of the total cost will be covered by our building and flood insurance policies, the balance due will be the responsibility of the entire HOA, not just the individual owners directly affected by the damage.  
The Board is currently looking at various options to fund the recovery costs including how/when to proceed with an assessment to all homeowners.  Individual homeowners who may not have experienced any damage to their respective units will not be exempt from any assessment to the entire HOA that results from this hurricane event.  In addition, any owner who decides to replace their A/C condenser/heat pump unit on their own, and outside of the HOA-managed process outlined above, will not be exempt from the HOA-wide assessment.
In closing, I want to assure all homeowners that the Regency Isle Staff and the Board are working very hard to return Regency Isle back to normal as soon as possible.  Patsy, Frank and Elray have all gone above and beyond the call of duty on our behalf, all while dealing with their own personal property damage and loss issues from the storm.  John Schween and Frank have been working daily with the insurance adjusters and general contractors to keep the water remediation, repair and recovery process going as efficiently as possible.  The Board and Staff have been holding conference calls every two to three days to make sure that communication is flowing and that decisions can be made in a timely manner.  We will get through this together.  All we ask for is your patience and support in the days in weeks ahead.

Hurricane Delta

Regarding the progress of Hurricane Delta, we are monitoring its progress and will make a decision in the next 24 hours regarding pulling balcony furniture into units, pulling down hurricane shutters, etc.  Please work with your third party property management companies to assist with this effort as you see fit.


Regards,
Dale KlineBoard President
[email protected]










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HOA Homeowners,


We have had many owners ask questions about insurance coverage, A/C replacements and timing, the likelihood of an assessment to cover HOA expenses as a result of Hurricane sally, etc.  I will try to address the most pressing questions/issues to the best of my ability as follows:




HOA Insurance Policy Coverage


The HOA has building and flood insurance that covers damage to the property in the event of a named storm occurrence such as what was experienced with Hurricane Sally.   Based on feedback from our insurance agent (McCarron), past experience with hurricane Ivan in 2015, and our legal counsel, the policy will cover the water damage/remediation work that is going on with Servpro, the reconstruction repairs to the units by Coastal once Servpro completes their water remediation/demolition work, the replacement A/C/ condenser/heat pumps that are irreparably damaged (and their associated air handlers if necessary) , the elevator repairs, etc.  The policy calls for the unit reconstruction repairs to conform to “builder grade” standards in terms of drywall, trim and paint.  In other words, the repairs cannot cover any upgrades that an owner might like to pursue.  Example – if a unit has carpet that was destroyed due to moisture/mold, the policy will replace the carpet with “builder grade”  carpet.  If for some reason an owner wanted to take the opportunity to upgrade to floor tile, the policy would only cover the cost of the replacement carpet.  The owner would be responsible for the additional cost for the upgrade to tile.


In the event that an owner experienced any water damage to non-building materials such as area rugs, furniture, etc., such materials are considered “contents” and as such are not covered by the HOA building/flood policy.  Any costs associated with the cleaning and/or replacement of unit contents is the responsibility of the owner and certainly can be filed by the owner against his/her individual homeowner policy.




A/C Condenser/Heat Pump Issue


John Schween and Frank Brown have been, and are working with Island Air to inspect A/C and heat pump units on the property.  Note:  If you have already had a HVAC service technician inspect your unit and been given a green light to operate it, please send that information to [email protected] and [email protected] immediately so that we do not incur the cost of “double inspecting”  a unit.  We have also employed a professional engineer experienced in HVAC systems to assist us with the oversight of the A/C/heat pump portion of the project to make sure that we cover all bases appropriately.  This inspection process should be completed this week.  Once the inspection process is completed and the A/C and heat pump repair/replacement inventory is finalized, we will proceed with a repair/replacement schedule.  We will notify all affected owners of the repair/replacement status of their respective units as soon as possible. 




Rental Losses


We are certainly aware that many owners rent their units to help make expenses, and that some owners have lost rental income as a result of the hurricane.  Most individual homeowner policies have some provisions for some amount of recovery of lost rent.  Every owner who has lost rental income as a result of the hurricane should certainly contact their insurance provider for guidance.




Expected HOA Expenses


We are working closely with the insurance company, the insurance claim adjusters, and their oversight consultants in tabulating the total estimated cost to complete all of the repairs to Regency Isle.  The objective is to do whatever we can to get Regency Isle back to “normal” in the most efficient and cost effective manner.


With that said, our building insurance policy deductible for a NOAA named storm is $600,000.  It is likely that we will incur repair and recovery expenses that will meet (or exceed) this deductible amount.  We will have to secure funding from the HOA homeowners to cover this deductible amount at a minimum.   The damage done to Regency Isle by the hurricane affects the entire HOA.  Once we finally know what the final outcome is with regards to the total cost that will be incurred to make repairs to the entire building, and we know how much of the total cost will be covered by our building and flood insurance policies, the balance due will be the responsibility of the entire HOA, not just the individual owners directly affected by the damage.  


The Board is currently looking at various options to fund the recovery costs including how/when to proceed with an assessment to all homeowners.  Individual homeowners who may not have experienced any damage to their respective units will not be exempt from any assessment to the entire HOA that results from this hurricane event.  In addition, any owner who decides to replace their A/C condenser/heat pump unit on their own, and outside of the HOA-managed process outlined above, will not be exempt from the HOA-wide assessment.


In closing, I want to assure all homeowners that the Regency Isle Staff and the Board are working very hard to return Regency Isle back to normal as soon as possible.  Patsy, Frank and Elray have all gone above and beyond the call of duty on our behalf, all while dealing with their own personal property damage and loss issues from the storm.  John Schween and Frank have been working daily with the insurance adjusters and general contractors to keep the water remediation, repair and recovery process going as efficiently as possible.  The Board and Staff have been holding conference calls every two to three days to make sure that communication is flowing and that decisions can be made in a timely manner.  We will get through this together.  All we ask for is your patience and support in the days in weeks ahead.




Hurricane Delta



Regarding the progress of Hurricane Delta, we are monitoring its progress and will make a decision in the next 24 hours regarding pulling balcony furniture into units, pulling down hurricane shutters, etc.  Please work with your third party property management companies to assist with this effort as you see fit.





Regards,


Dale Kline
Board President


[email protected]














































































































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Communication from President of the BOD