Restoring Our Community. Securing Our Future
In July 2022 the Lake Lorelei Clubhouse experienced a devastating fire that affected the kitchen, roof and electrical components of the community’s clubhouse. As a result of the fire, the fire marshal and the insurance company closed the clubhouse for use. The restoration of the Clubhouse is mandated by the by-laws of LLPOA.
The process is being overseen by the Lake Lorelei Board of Trustees, Clubhouse Master Plan
Committee and North Shore Design Architects is based on four factors.:
1. Safety
2. 2023 State & County Building Codes
3. Fiscal Responsibility
4. Community Input
During and after the last votes many questions were asked that either didn’t get answered or were not widely understood. With eyes on restoring the heart of the Lake Lorelei Clubhouse we hope to answer a few of these questions.
Each topic will have a summery and a drop-down menu with more detailed questions and answers. Please feel free to reach out is you have further questions, and we will get back to you.
After the fire it was necessary to hire an architect to help us get as much as possible from the Insurance company. With the age of the building, the repairs that are needed and the need for the Community to have an accurate estimate for how much the project would cost, we hired North Shore Design.
The interior plans include a warming kitchen, a rework of the storage and restroom space, a beautiful design to open the east side of the building to enjoy the lake front views, updated electrical and HVAC systems with fire protection,
After the fire it was necessary to hire an architect to help us get as much as possible from the Insurance company. With the age of the building, the repairs that are needed and the need for the Community to have an accurate estimate for how much the project would cost, we hired North Shore Design.
As indicated above, we needed 2 architects. One to help with the insurance claim (see Insurance section) and one for the future of the club house to make sure we covered the requirements while staying within our means.
The insurance coverage LLPOA had on the clubhouse would not cover all the repairs due to 50 years of depreciation. Our insurance covers the Actual Cash Value and the Depreciation Value of the items within the Clubhouse. It was a very long process because of the insurance company’s very low initial o
LLPOA has commercial liability coverage limits of up to 1.7 million dollars for a total loss. Since we did not experience a total loss, we can only be reimbursed for those losses that we can justify less the depreciated value.
The policy covers replacement up to the depreciated value or specific repairs required to recover to the "pre-loss" condition. Repairs are made to structural elements but not for modifications for code compliance or changes to the structure.
Within four months we received an initial cash settlement of $129,000. An Actual Cash Value payment of $308,000 has been received based on negotiations to date. A total award of $352,000 has been negotiated with the difference being the remaining depreciated value of $46,000. The insurance claim remains open.
A full study of damage and recovery costs was needed to negotiate with the insurance company. The original offer was $129,000 which was a horrifically low number. The due diligence in that counter proposal required specific designs, time, and manpower to develop and meet industry standards.
On-going negotiations are taking place. If our policy lapses before we have a resolution, we will expect to lose the $46,000 of the depreciated value and potentially have difficulty finding insurance coverage for the Clubhouse (either the building will be uninsurable, or premiums will be unreasonably high). The Cash Value will be paid regardless of whether we rebuild anything. Any additional supplemental claims discovered during construction are potential losses if we do not rebuild. A final negotiated settlement to fully close out this claim is still under negotiation. The insurance company has provided us checks totaling $308,509. This represents the “Actual Cash Value” of our loss.
Additional money from the insurance company of $46,000 for the Depreciated Value. In addition to that $46,000, if not brought up to current code and standards we risk not being able to insure the build or insurance at very high premiums. There is also a potential for supplemental claims and payments as we discover them during the repairs and replacements. The supplemental money is only available IF we replace the lost assets. Negotiations are taking place to maximize our potential claim payout.
We understand in every association there comes a time when an owner of a property may have difficulties paying their assessments, Lake Lorelei is no exception. The BOT does addresses financial issues and does work with Members on a payment plan. To request a payment plan, please contact the Office.
It is understood that this question refers to not only those financially unable to pay the assessments, but also to those that feel there is a less expensive way to approach the problem. The Board has reviewed other options to replace or remove the current club house. Those options did not provide a better solution. Unfortunately, 5312.10 of the Ohio Revised Code and LLPOA Code of Regulations details the financial responsibility that the Board must follow. The common expenses of the Association are to be divided amongst the Association Members in accordance with the allocations set forth in our declaration (LLPOA Code of Regulations Schedule of Fees). Therefore, the BOT cannot offer a waiver or discount of any type to any specific member. To request a payment plan, please contact the Office.
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