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!

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