Homeowners associations can avoid steep assessments with planning, coverage

I feel very sorry for those condo owners in southwest Cedar Rapids who are being assessed huge sums for the replacement of a retaining wall. However, that could have been avoided.

There are two things all members of a homeowners association and their boards should know:

First, association dues should include enough money so that the association has a reserve fund for such expenses. Several years ago we had to replace all the shingles on our buildings because of a severe hailstorm and our deductible was very large and last year our association replaced part of the concrete in our private street at a huge cost. We had reserves to cover these and we were not assessed.

Second, homeowners should add loss compliance coverage to their individual policies. My coverage means that if my association levied an assessment against us for similar repairs, my insurance company will pay the first $10,000 of that levy and I can increase the coverage to a higher amount if I chose to. The premium cost of such coverage is very minimal.

Larry Neppl

Marion