Condo Insurance Payment to Unit Owner or Association?

S.F. from outside of Connecticut writes:

Dear Mister Condo,

Our building’s exterior was damaged by a falling tree. The claim check for six thousand dollars was made out to one of the condo owners. Should it have been made out to the condo association?

Mister Condo replies:

S.F., I am sorry that one of your buildings was damaged. Typically, the check is made out to whoever holds the policy. So, if the association was the policy holder and the damage occurred to association-owned property, the check is cut to the association. If the unit owner held a homeowner’s policy and that policy covered the damage, the check should have been sent to the unit owner. Building exteriors are almost always owned by the association and covered by an association policy, but exceptions do occur and insurance companies can also make payments directly to vendors or third parties at the policy holder’s request. Without knowing all of the circumstances, I cannot offer an opinion on exactly who should have received the check. However, as long as the damage was repaired and the vendors have been paid, there may be “no harm, no foul” to the association or the unit owners. All the best!

2 thoughts on “Condo Insurance Payment to Unit Owner or Association?

  1. thanks for replying.check made out to hoa’s president brother.policy i believe in condo ass.name.i can check these facts.what is the time limit to take action,if we wish to sue.also i believe partial repairs may have been made.we were never shown a bill.i accidently learned about the payment,and requested a copy.

    1. S.F., you would need to check with an attorney to see what, if any, time limits are involved in bringing a suit. Just make sure the money you are chasing isn’t less than the cost to chase it, if you know what I mean. It might make more sense to just have them acknowledge it was improperly handled this time and that they will do a better job next time. Of course, you will need to keep a vigilant eye. Good luck!

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