Who pays for water damage in a condo complex?
December 11, 2009 by
Filed under condo water damage
There was recently a water leak caused because of a hole in the EXTERIOR stucco in my condo unit that I own. The exterior hole/stucco have now been repaired by the HOA. However, there is water damage to my wood floors.
Who should pay for that? The HOA? The condo’s blanket insurance policy? My personal condo owner insurance policy?
Any advice or tips on making the responsible party pay for my floors being repaired is appreciated. Thanks.
I would say if it was neglect of maintenance the HOA insurance should cover it. Probably need to call your home owners insurance agent and ask them.
The association should pay to fix the damage to the building, but the water damage is YOUR problem. You’ll need to file the claim under your unit owner’s policy.
Most likely, the bylaws say the association – including the condo master policy – only pays for damage to COMMON STRUCTURE, the building. That wood floor is most likely your problem. Also, most master policies have big fat deductibles – like $50,000 or so, AND, many won’t cover water damage from leaks.
Who’s responsible for the water leak? Legally, it’s up to a judge to decide. Who caused the hole? Who knew about it? Bottom line is, it’s going to cost you more money to sue someone over this, than you’ll ever collect.
Your condo association purchases insurance on the building and premises. Broadly speaking there are two approaches your association can take to insure the property. The approach your association chooses will be enumerated in your condominium bylaws.
Under one approach the condo association agrees to cover only the exterior and common areas. You, then, are responsible to insure the interior this can include walls, wall coverings, flooring, furnace, appliances, lighting, plumbing fixtures, kitchen and bath cabinets (basically everything inside your condo). In this scenario you are responsible not only for your personal property but also the entire interior of your condo.
The other approach that is more comprehensive is where the association agrees to cover the entire unit as it was originally built. In this scenario you only insure your upgrades (i.e. bookcases, upgrades, finished basements. etc.) and your personal property.
You need to read your bylaws to determine the approach that your association has chosen…
Tom Z is correct.
First contact your HOA, if they take responsibility then it will be up to them if they want to file a claim with there insurance company or pay out of the funds in there reserve. If the HOA does not take action right away file a claim with your insurance company. Depending on The covenants, conditions and restrictions (CC&Rs) your insurance company will pay to repair your home and then subrogate against the HOA for the money they had to pay out. If it was me personally I would file a claim with my insurance company so that you have complete control over the contractor selection and the quality of work. If the HOA chooses the company to do the work chances are they will shop based on price not quality. This is your home and you want to make sure you protect what you work hard for.