D.M. from Hartford County, Connecticut writes:
Dear Mister Condo,
Mr. Condo, we reside in a small PUD community and most homeowners have “condo” insurance to cover potential losses within the home. In the event any home experienced a significant foundation problem such as major cracking or shifting; would the association or homeowner be responsible for the repairs?
Mister Condo replies:
D.M., as you may know, there have been several associations in Connecticut who have had foundation problems. These are construction defects that can cripple an association because they are so expensive to repair and are rarely insured. The association may have to sue a developer who has may times dissolved the corporation that built the association leaving the association with little option but to either assess homeowners for the repair or take out a loan to cover the cost. The State of Connecticut did set up an insurance relief program to help with the cost but that program is subject to limits and funding constraints. My guess is that traditional homeowner insurance would offer little to no relief because that type of insurance covers building contents and interiors. Typically, the homeowners don’t even own the condo foundation so they couldn’t insure it if they wanted to. I hope your condo is spared from this crushing expense but it is important that the foundations are inspected and replaced if found to be faulty. Good luck!