Condo Flood Insurance Inadequately Provided

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C.C. from outside of Connecticut writes:

Dear Mister Condo,

My association refuses to increase its flood insurance. I want to sell my unit. the cost of individual policies are high. It would be more cost effective to raise the whole building cost but they won’t. Do I have any options?

Mister Condo replies:

C.C., I am sorry you find yourself in this unfortunate situation. My answer would depend on your state and even your own association’s responsibility to insure as spelled out in your governance documents. The fact that they are providing any flood insurance at all indicates to me that either the documents call for that provision or an earlier Board came to the same conclusion as you that the insurance should be provided as it was less expensive to provide it in bulk rather than numerous individual policies. Review your documents. If they state that the association is responsible to provide all related insurances to cover the units, then simply bring that fact to the attention of the Board. Check your state laws. Again, if your state law (as does mine in Connecticut) requires that the association provide the insurance, then bring that to the Board’s attention and ask them to provide the appropriate coverage. If either condition is true and the Board refuses to provide the insurance, you may have to sue the association. If neither is true, you may be on your own to provide the appropriate coverage. Your buyer will need it for their mortgage at the very least. All the best!

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