V.S. from Miami, Florida writes:
Dear Mister Condo,
I have a mortgage on this condo. It’s free-standing not connected to another condo. Our declarations clearly state anything that breaks inside the condo is my responsibility. Had a pipe break in the bathroom upstairs lot of damage. Called my mortgage company they said I had no escrowed insurance for damages. Isn’t that required by law?
Mister Condo replies:
V.S., since I am not an attorney, I cannot give you a legal opinion on your issue. The agreement between you and your mortgage company is just that. If the agreement doesn’t require insurance for your unit interior (most don’t), then interior damage is your responsibility. Many condo associations require unit owners to have individual homeowner coverage. Mortgage companies traditionally require that the association have a Master Policy and Flood Insurance, Earthquake Insurance, etc. depending on the part of the country where you live, in place so that the unit’s replacement is assured in the event of a destructive event. Interior damage doesn’t really matter to the mortgage company as it isn’t going to destroy the property’s resale and value as collateral for the mortgage. I am sorry that this wasn’t explained to you before this accident occurred. I strongly encourage you to speak with an insurance professional and purchase your own homeowner’s policy to protect you from future matters like this. All the best!