Question Regarding Water Heater Damage

[djs]

Let's see....

- There is no single answer to this. Its going to depend on the other unit owners policy and the master policy to see if there is coverage.
- We would also need to know the cost of the repairs to make any real recommendations. My recommendation would vary greatly if the cost of repairs is under $5K as opposed to say over $30K (I've seen both for this exact situation).
- It is unlikely that the master policy is a 'walls-in' policy. They do exist and I try to always write them, but sadly, the overwhelming majority are not. This would imply limited coverage on the master policy (depends on what damage exists).
- The master policy has at least a $5K deductible, if not higher. It makes no sense for an HOA to carry a lower deductible.
- Most HOA's will not file claims for unit owner issues that don't involve structural problems, which is what the master policy is really for.
- The other unit owners policy will only provide coverage if they paid for coverage to their unit. A lot of condo policies have no coverage for the unit itself. I know, amazing, but true. Everyone assumes the master policy will cover this.
- If you had a policy, this would be covered under your liability coverage. I've sold a lot of policies after these types of losses.

Dan

 

[Guest]

I shall BOW DOWN to the almighty Biggdogg

 

[djs]

You should. He's pretty much correct. Unless the claim is bigger than I imagine it is.

 

[Guest]

You should. He's pretty much correct. Unless the claim is bigger than I imagine it is.

he hasnt told us how much the damage is, I have seen some big ones in this situation, upstairs water heater leaks, floods for hours before someone sees it.... CHA CHING

 

[insurancesmarty]

You should refer to your condo docs which should spell out responsibility. Typically most associations will tell unit owners that they are responsible for damage in their own units unless they can provide neglegence is involved. The unit below's policy should cover if water damage is covered by their policy and if the damage exceed the deductible on their policy. Their insurance company may after settling the claim with their insured may come after you if they think you might be negligent.

 

[moonlightandmargaritas]

If you had a policy, this would be covered under your liability coverage.

I pointed this out earlier in the thread - and I don't even do P&C...

 

[Guest]

You should refer to your condo docs which should spell out responsibility. Typically most associations will tell unit owners that they are responsible for damage in their own units unless they can provide neglegence is involved. The unit below's policy should cover if water damage is covered by their policy and if the damage exceed the deductible on their policy. Their insurance company may after settling the claim with their insured may come after you if they think you might be negligent.

What is a condo doc? A Doctor? or do you mean The CC&R's?


Unless I am reading this wrong, you think no matter who causes the damage, the unit owner needs to file on their own insurance. From your other NUMEROUS Day 1 posts, you have mention a number of times no matter who is at fault, for people to file on their own insurance, WTF?

Dude, alot of what you write doesnt make sense, unless I am not understanding you

So You say, according to the Condo Docs that no matter who causes damage, the unit owner is responsible for the damage? "Typically most associations will tell unit owners that they are responsible for damage in their own units unless they can provide neglegence is involved"

I have seen MANY instances the total opposite and both "a" tenants insurance and the master policy pays out....

 

[mattj]

Thank you for all of your answers and insight. Sometimes you have to learn life lessons, sometimes expensive, the hard way. Thanks again