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condominium & hoa coverage - Who is responsible for damage?

6/23/2020

Throughout the years, we have represented both homeowners and condo and homeowner associations with property damage insurance claims. There are specific items that each party is responsible to repair such as roof, exterior of building, drywall, interior finishes, plumbing and electrical. It is important to keep your Condo or HOA documents together with your insurance policy because these documents clearly state what repairs are the responsibility of each party i.e. the homeowner or the association. A copy of these documents are provided to you when you purchase your home or condo.

Let’s say you live in a condo and the roof leaks and causes water damage to the interior of your condo. You promptly report the leak to the association and they state “we are not responsible for the damage you need to file a claim with your insurance company” You do so immediately. After all, you trust your association and believe they are giving you the correct information because they have your back right?

Your insurance company visits the property and inspects the damage only to tell you there is NO coverage in your policy and you receive a claim denial letter that reads in part:

“Your policy does not provide coverage for rain, snow, sleet, sand or dust to the interior of the building unless a covered peril first damages the building causing an opening in a roof or wall and the rain, snow, sand or dust enters through this opening”

Why is the association responsible for these damages? First and foremost, in a case like this, you do not own the roof, the association does. They are responsible for the maintenance of the roof and any and all repairs to the roof. Secondly, and unless otherwise stated in the condominium documents, the association also owns the drywall, insulation and exterior of the building. Therefore, the association should be filing an insurance claim for the damage to your home, NOT you!

I have also reviewed condominium documents that state the homeowners are responsible for all repairs to the interior of their home which also include drywall, insulation, windows, doors, plumbing, electrical. This is why it is important to always keep both sets of documents together. In a scenario like this, when our client’s insurance company says they do not owe for these items, we prove they do and have always been able to get them covered for our clients.

Let us help you understand your insurance policy and schedule your FREE insurance policy review today. Contact us here or call 561-288-6434.

3 Comments

Dave Weilder link

5/18/2023 05:29:34 am

Dear Reliant,

I recently came across your blog post titled "Condominium HOA Coverage: Who is Responsible for Damage," and I wanted to express my appreciation for the insightful information you provided. The topic of insurance coverage and responsibility in condominiums and HOAs can often be confusing for homeowners, and your article clarifies important aspects of this matter.

You explained the distinction between individual unit owner insurance and the HOA's master policy, highlighting the coverage areas of each. It was helpful to learn that while the individual unit owner's insurance typically covers personal belongings and improvements within their unit, the HOA's master policy typically covers common areas and the building's structure.

The breakdown of different scenarios, such as water damage originating from a common area or from an individual unit, provided clarity on the allocation of responsibility. Understanding that the HOA's master policy generally covers common area damage, while the individual unit owner's insurance covers damage within their unit, helps homeowners navigate insurance claims more effectively.

I particularly appreciated your emphasis on reviewing the HOA's bylaws and master policy to understand the specific coverage and limitations in place. It is crucial for homeowners to familiarize themselves with these documents to ensure they have a clear understanding of their insurance obligations and responsibilities.

Furthermore, your suggestion to consult with an insurance professional or an attorney specializing in condominium and HOA matters is invaluable. Seeking expert guidance can help homeowners navigate complex insurance issues and ensure they have appropriate coverage in place.

Thank you for providing such informative content and shedding light on the intricacies of condominium and HOA insurance coverage. Your blog post serves as a valuable resource for homeowners seeking clarity on this often misunderstood topic.

I look forward to reading more insightful articles from Reliant in the future. Keep up the great work!

Dave Hinson link

5/28/2023 03:07:14 am

I recently read your blog post titled "Condominium HOA Coverage: Who is Responsible for Damage," and I wanted to express my appreciation for the informative content you provided.

Determining responsibility for damage in a condominium or HOA setting can be a complex matter, and your article offers valuable insights into this topic. I found your explanations and examples to be clear, concise, and helpful in shedding light on the intricacies of insurance coverage and liability.

By discussing the different types of insurance policies involved, such as individual unit owner insurance and HOA master insurance, you are effectively highlighting the various layers of coverage that come into play. Understanding these policies is crucial in determining who is responsible for damage in different scenarios.

I appreciate how you explained the general principle of responsibility, where the unit owner is typically responsible for damage within their unit, while the HOA is responsible for common areas. This distinction helps readers understand the boundaries of liability and aids in resolving potential disputes regarding damage.

Furthermore, your discussion on specific scenarios, such as damage originating from a specific unit affecting multiple units or damage to common areas, provides practical examples that further enhance readers' understanding. The clarification on deductible allocation and the role of insurance appraisers in assessing damage is also valuable information.

One suggestion I would like to offer is to provide additional guidance or resources on how condominium owners and HOAs can navigate insurance claims processes effectively. This could include tips for documenting damage, understanding policy exclusions, and seeking professional assistance when needed.

Overall, your blog post provides valuable insights into determining responsibility for damage in a condominium or HOA setting. By explaining insurance coverage, discussing liability principles, and providing practical examples, you are helping readers navigate potential challenges and understand their rights and obligations.

Thank you for sharing such informative content and contributing to the knowledge base of condominium and HOA insurance coverage.

Jacoby Johnson link

6/1/2023 12:32:02 am

Thank you for sharing your blog post on condominium HOA coverage and the responsibilities for damage. This is an important topic for condominium owners and residents who often have questions about insurance coverage and who is responsible for damage in common areas and individual units.

Your article provides a clear and informative explanation of the different types of insurance coverage involved in condominium living, such as the master policy held by the HOA and individual unit owner policies. You highlight the importance of understanding the coverage provided by each policy to determine who is responsible for specific types of damage.

I appreciate your emphasis on the role of the HOA's master policy in covering common areas and shared elements of the condominium complex. Explaining that the HOA's insurance typically covers structural elements, exterior walls, and common spaces helps clarify the boundaries of responsibility.

Your mention of individual unit owner insurance policies, also known as HO-6 policies, is important. These policies typically cover the contents of the unit, personal liability, and any upgrades or improvements made by the unit owner. Understanding the scope of coverage under these policies helps individual owners assess their responsibilities for damage within their units.

Furthermore, your explanation of deductibles and the potential for insurance claims to affect individual unit owners is insightful. By highlighting that the HOA's deductible may be allocated among unit owners or impact their individual insurance claims, you provide readers with a deeper understanding of the potential financial implications.

While your article provided valuable insights, I would like to add a few additional points for readers to consider:

Review the HOA's governing documents: The condominium association's governing documents, such as the bylaws and declaration, often contain provisions regarding insurance coverage and responsibility for damage. It is essential for unit owners to review these documents to understand the specific obligations and rights outlined.

Communicate with the HOA: If there is any confusion or uncertainty regarding insurance coverage or responsibility for damage, it is recommended for unit owners to reach out to the HOA board or management company. Clear communication can help clarify any issues and ensure that everyone is on the same page.

In conclusion, your article provided valuable guidance on condominium HOA coverage and the responsibilities for damage. By following your recommendations and considering the additional points mentioned, condominium owners and residents can navigate insurance matters more effectively and understand their obligations when it comes to damage within the complex.

Thank you once again for addressing this important topic.

Reliant Blog

condominium & hoa coverage - Who is responsible for damage?

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