Tag Archives: Insurance

NYC Condo Board Forcing Rule Changes on Unit Owners

M.T. from New York City writes:

Dear Mister Condo,

We live in NYC in a 22-unit condominium building. We recently received an e-mail from our management company (on direction by our board) that certain “rules” would be changed, including language that limits what the building insurance would cover and how many pets are allowed per unit. We don’t really care about the change in pet policy though it does strike us as funny that one of the condo board members has more than the two dogs currently allowed. The change to the insurance language however does seem odd since it’s contrary to our by-laws. In the same message that contained the new “rules,” we were also informed that we needed to sign the attached document within 2 weeks and return it to them. Failure to sign would result in escalating monthly fines. I don’t see anything in our by-laws that specifically authorizes this – except that the condo board of course can enforce rules and fine for non-compliance. Do I have to sign? Or in other words, can they fine me for not signing this? The rules at this point look more like an amendment of the by-laws and it’s our understanding that we need to vote on that in order to make a change.

Mister Condo replies:

M.T, I can see where you would find it odd that these rules are being changed almost arbitrarily, especially by a Board of such a small condo. If there are 5 Board members and only 22 units, almost 25% of the units are represented by Board members. You are correct to challenge the process of changing rules or by-laws and you should look at both your governing documents and any local laws that may offer you protection from a Board that oversteps their authority to make changes that require a full vote of unit owners. As for signing a document provided by the Board that states they have informed you of the rule changes, I don’t see where that is a foul. Fining you for not acknowledging these rule changes seems a bit extreme. Typically, the Board only needs to notify unit owners in writing of rule changes for the rules to be considered in place and due process to have been followed. Forcing unit owners to sign this acknowledgement and then fining them for not doing so sounds like an unnecessary step to me but your governing documents may call for such a measure. You might want to attend the next Board meeting and observe what is going on. If they offer an opportunity for unit owners to voice concern, you could ask what these changes are about. It could be that the insurer has given the Board reason to make these changes. One instance I can think of is creating maintenance standards for things such as water supply lines inside of units. If left unmanaged, broken water supply lines can cause a fortune in damage. Many insurance companies now require that these lines, even if working properly, be replaced at regularly scheduled intervals. All the best!

Shared Water Main Creates Condo Chaos

K.B. from outside of Connecticut writes:

Dear Mister Condo,

I live in a 4-unit condo where two units share a main water line. HOA newsletter in Nov. 2015 there was an article stating to make sure you notify your neighbor when you turn off the water line to both units. Recently my neighbor has been working on their condo and turned off the water while they were working. I was never notified that the water was going to be turned off. I saw their contractors leave and my neighbors return home around 4:30 p.m.. Water still was not turned back on, at about 6:00 p.m. I knocked on the door, no response. I thought they forgot to turn on the water. I turned on the water to take a shower. I went straight up the stairs heard water running and ran back down the stairs to turn the water back off. Not till 6:30pm did my neighbor return home. Their contractors did not cap her pipes in the bathrooms and she expects me to pay for the damage. Who would be responsible for the repairs?

Mister Condo replies:

K.B., it is too bad that there weren’t better communications between you and your neighbors. They needed to communicate with you when they turned the water off. You needed to communicate with them when you turned the water on. Neither of you did. Typically, I would say neither of you are responsible and let each of your insurance companies battle it out for how to handle the expense of the repair. The newsletter article is a nice way of reminding unit owners about the issue but it isn’t a legally binding notice. If your neighbor has insurance, I would think their homeowner’s policy would cover the damage. If not, they might elect to sue you in small claims court or such. Unless the damage was extensive, I doubt they will do that. I would offer my apologies and also ask them to make sure they do a better job communicating when and if the water is ever shut off again. All the best!

Hoarder Refusing Unit Access Adds to Hurricane Irma Damage

E.E. from Florida writes:

Dear Mister Condo,

We just suffered flooding due to Hurricane Irma in 3 of our 6 townhome buildings. The building where we are having an issue has 6 units adjoined by a 2-hour firewall. We have 1 unit owner is a hoarder – very bad, almost no walkpath. The unit flooded and we need her to move everything on the 1st floor for the repairs that the Association’s insurance is willing to do so that she doesn’t have a black mold issue. The drywall, the cabinets and flooring all have to be removed. She is saying she has no plan to move anything out or make repairs. The concern is not only for her but the adjoining unit owners. Can we make her comply for repairs?

Mister Condo replies:

E.E., I am sorry that your community suffered Irma’s wrath. Like so many other condominiums in your region, damage was significant and clean-up efforts will be ongoing for quite some time. You now face a serious challenge with a hoarder blocking access to her unit for clean-up. While most folks would welcome the cavalry arrival to get things back to normal, the hoarder’s brain works in a different manner. All is not lost, although I think you will find this a difficult battle. It’s all about where the line is drawn between unit owner’s rights and the rights of the HOA. My first call would be to the association attorney who can help guide you through what may become a lengthy legal process of actually having access granted. Of course, your first step is to work with the unit owner and/or any known family members who may be able to step in and let the restoration company get in and do its work. However, if the unit owner refuses to voluntarily provide access (typical hoarder behavior from my experience), the association needs to take more aggressive action. While the unit owner’s health is most certainly at stake, so are the neighboring units and even the entire building. Mold isn’t just unsightly; it can be deadly. This is an unfortunate complication to an already bad situation but, trust me, you will get through this. I wish you all the best in your recovery efforts.

Condo Insurance Payment Made to Unit Owner for Building Damage

S.V. from outside of Connecticut writes:

Dear Mister Condo,

There was damage to the outside of our building. Insurance check was made payable in the name of a condo owner, who is the brother of president of condo association, in the amount of $6,000.00. I could not get an answer from either party and the insurance company why this was not made out to the condo association. Was this legal? I don’t know how the money was spent. This was several years ago. Is there a statute of limitations?

Mister Condo replies:

S.V., that is a strange way of processing an insurance claim at a condominium. However, it is not unheard of and without a full review of the insurance and the claim, it would be very difficult to prove whether anything illegal occurred. In fact, the insurance company would more likely be the one to have a claim if they were defrauded out of money. Was the building damage repaired? Was there further money paid for the repair by the association that the insurance should have covered? If there were no additional monies paid out by the association and the damage was repaired, it is probably best to stop worrying about it. I am not aware of a statute of limitations for you to investigate and/or file a complaint with your association on how the insurance money was distributed but to what end? If you weren’t harmed financially, this is really an item for the insurance company to worry about, not you. All the best!

Ownership of Burst Condo Water Line Questioned

T.G. from New Haven County writes:

Dear Mister Condo,

If a hot water line bursts in an outside wall who is responsible, the unit owner or the board? Also, the line was not where the Board said it was. Our kitchen sits above our neighbor’s garage. The board said both hot and cold lines are in the ceiling of the garage.

Mister Condo replies:

T.G., typically when water lines burst it is the responsibility of whoever owns the area where the line has broken. In other words, if you own from the wall in, a line that breaks outside of your walls is very likely the responsibility of the association. Regardless of what the Board says about it, a reading of your documents will very likely clear this up. If, by chance, the documents don’t appear to provide you with a good answer, it is time to speak to an attorney who can read any “legalese” that might make a simple determination possible. There are exceptions, of course. I know of some associations that have allowed modification of water lines at owner’s requests and along with the approval to do so came the responsibility to maintain the water lines. This is highly unusual though and does not sound like your situation. If you do own all of the interior walls where the water line burst (garage ceiling is a good example, a bathroom supply line would be another) then you may be on the hook for the repair. Like I said, when the unit owner and the Board don’t agree, it is usually time for a legal opinion. Good luck!

Condo Maintenance Standards vs. By-Laws

J.J. from New Haven County writes:

Dear Mister Condo,

I have heard that maintenance standards overrides the bylaws. If so, what is stopping associations from just putting in what they want rather than changing the bylaws, which is very costly?

Mister Condo replies:

J.J., maintenance standards are generally enacted to ensure the community association insurance policies will protect the unit owners. Maintenance standards, or rather lack of, makes the association particularly vulnerable to damage caused by items that commonly wear quickly. Water supply hoses and water heaters come to mind. When either fail, tremendous damage can ensue. Without maintenance standards in place, the association could find itself uninsured for the liability. That being said these standards are still introduced and voted upon by either the Board or the full membership of the association before they are put in place. By-laws cover so many other areas of association governance that it is hardly fair to put them in the same category as maintenance standards. You couldn’t simply make a rule about something like “use of the clubhouse” and call it a maintenance standard. That would be a by-law change. Other associations feel that maintenance standards are important enough to actually create a by-law change. Either way, unit owners are bound to these standards once they are properly adopted. It is in the best interest of all association members that these standards are in place and enforced. All the best!

Condo Insurance Check Issued to Unit Owner for Building Damage

S.F. from Fairfield County writes:

Dear Mister Condo,

Insurance check for house damage was made payable to a condo owner, who is the brother of the president of the condo association. Why did the insurance company allow this? Check amount was substantial, for several thousand dollars.

Mister Condo replies:

S.F., there are a few reasons that the condo owner was reimbursed directly for an insurance claim. For starters, the policy holder typically designates the payee. Was this entirely association-owned insurance or was it homeowner’s insurance as well? Typically, the homeowner gets paid for claims made against their own policy. If the damage had already been repaired by the homeowner, the check may have been for reimbursement. A typical association claim for exterior building damage would go to the association, who would then hire the contractor to repair the exterior building damage. It the damage were internal (water damage for instance) and the association’s insurance were covering that damage, it would not be uncommon for the payment to go directly to the homeowner.

Keep in mind that insurance claims are also records of the association. As such, you have the right to inspect the claim. If you think foul play is afoot, I would suggest you review the paperwork to determine why the payment went to the owner and not the association. Good luck!

Condo Roof Leak Causes $75K in Damage; No Insurance Claim Made

J.T. from Middlesex County writes:

Dear Mister Condo,

Condo roof leak caused mold and extensive repairs paid by unit owner. The association refuses to pay the bill. $75,000.00 and never contacted master insurance but stated in emails that they did during initial assessments by environmental specialists provided by association who stated the need for immediate repairs. What is my next step?

Mister Condo replies:

J.T., you have a few different issues here. If it were me, my next step would be to contact an attorney to find out who I should sue for the $75,000 repair. That is a lot of money to be out of pocket for a roof leak and mold remediation. Of course, there is a procedure and protocol to follow here so don’t expect this to be a necessarily easy battle. Let’s start with the roof leak. Did the association fix the roof leak? That is their duty, regardless of whether insurance covers it or not. The association should have had insurance to fix the roof and made a claim to cover the cost or repair and any damage to any common elements. The association should have hired the contractor to make the repair. Is that what happened? You didn’t pay for the roof repair, did you?

Damage to your unit’s interior should have been covered by your own policy. If you didn’t have a homeowner’s policy in place, you should have and you should definitely have one in place moving forward. If the repairs were made in timely fashion, the mold issue may have been averted as most clean-up efforts would have included a dry-out of the damages area. However, as is often the case with mold, it doesn’t appear until months later. Regardless of how it got there, mold remediation is necessary because it can be toxic and, at the very least, a health hazard. If the mold can be determined to have been caused by the roof leak, the association may be on the hook for that as well. You should talk to an attorney about the mold issue to see who is responsible.

Again, I am not sure as to how you amassed a $75,000 bill for this problem, J.T.. If it was a lack of insurance on your part, this is going to be an expensive lesson on why you should always carry homeowner’s insurance. If it was simple mishandling of the claim by the association, an attorney can best advise you of your next steps. I hope you get the mold remediation taken care of immediately. All the best!

Condo Association-Hired Contractor Damages Unit Owner Ceilings

D.R. from Hartford County writes:

Dear Mister Condo,

A unit owner notified the condo association of a roof leak. A contractor, called by the association to inspect and give an estimate, caused several cracks in the ceiling while up in the attic inspecting, even though he was told the attic had no floor. Who is responsible for the repair, the contractor and his insurance or the Condo association insurance. The condo insurance company said they are not involved.

Mister Condo replies:

D.R., what an unfortunate situation. I am actually surprised that this contractor didn’t fall through the ceiling, which would have caused an even bigger problem for the association and perhaps even caused injury. The association hired the contractor to handle the inspection. Regardless of what the contractor was told, his actions caused the damage as reported by you. Typically, the association should go after the contractor for the damage he caused. Typically, that would have the contractor calling his insurance company to file a claim. It sounds to me like that didn’t happen. Instead, someone initiated a claim with the condo insurance who has subsequently denied the claim as it wouldn’t typically be covered by the type of insurance most associations have for their buildings. In fact, you have stated that the damage was caused by the contractor.

Without knowing all of the details, I would suggest the association needs to go after the contractor they hired and have the contractor make good on the damage he caused. If his insurance will cover it that should be a fairly simple process. If his insurance will not cover it, he should pay out of pocket for the damage. If he won’t do that, the association should sue him for the damage and make good on the repairs for unit owners. If all else fails, unit owners may have to sue the association for hiring the contractor that caused the damage. Sounds like everyone has to do what’s best for them in this situation although the legal fees could quickly outweigh the actual cost of repair. Good luck!

Florida Condo Homeowners Insurance Requirement

V.B. from Florida writes:

Dear Mister Condo,

I’ve lived at my condo in Orlando since 2009, when it was vetoed that unit owners are required to have insurance for condo. Are unit owners required to have condo insurance?

Mister Condo replies:

V.B., I am not an expert in Florida community association law so please consider this a friendly answer and not a legal one. You may wish to check with a local attorney for a legal opinion. Generally speaking, unit owners should have a homeowner’s insurance policy at the very minimum, regardless of requirement, to protect themselves from potential losses. Many association governance documents require unit owners to hold such policies but I am not aware of any legislation that requires unit owners to hold policies. In fact, my understanding of the Florida Condominium Act is that it does not require the insurance but it does state that the interior damage is the unit owner’s responsibility. As long as it is unit owner responsibility, the unit owner should want to have that risk insured, regardless of the law. That being said, if your original documents did call for a requirement to carry the insurance and the association voted to discontinue that requirement, there may, in fact, be no requirement for unit owners to do so. However, most mortgage companies would have a requirement for the unit owner to carry homeowner’s insurance and it is certainly a best practice to do so.  All the best!