homeowner re-imbursement for insurance premium

Started by CherylO • 7 replies • 1402 views

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CherylO (Washington)
Posts: 2

Posted:

June 2012 our son died in bed from a heart condition. A fire started somehow and his condo was destroyed. Week read the Fire Investigation Report which said the fire was thought to be from a cigarette but not proven to be so.
All homeowners were assessed $25 for two yrs. to cover the $20 k deductible. Because our son had been ill he quit claim deeded the condo to his 18 yr. old son 6 weeks earlier. The boy was busy with graduation and hadn't yet insured it. Now the HOA has sent him a letter 31 months later stating he must re-imburse the Bluffs HOA $20k. If this HOA is profiting from requiring an additional $20 k from this accidental fire insurance deductible, it looks like that is not legal.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I am sorry for your loss. However, I don't see any profit here being made. The HOA had to cover the 20K deductible on their insurance policy. Which ALL the members had to pay. They are now seeking to have your grandson to reimburse that expense they had to pay out. Basically, it was like they paid the insurance deductible on your behalf out of their pocket and now seeking for your family to pay them back for it. There's no profit in it for them at all. They are out 20K and simply asking you all to pay it back. Unless I am missing something here.

Former HOA President

GlenL (Ohio)
Posts: 5,491

Posted:

Cheryl your grandson should contact an attorney ASAP over this, he may very well owe the money but I would not just accept the HOA's assertion that he does.

Studies show that 5 out of 4 people have problems with fractions

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Cheryl

Sorry for the loss of loved one.

That said, if he was responsible for the "accident", the HOA is just trying to collect their out of pocket loss.

Even if I believe the HOA has a claim, I would lawyer up before paying.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

You need a lawyer.

Its possible the condo docs do not allow the condo to recoup the deductible from one unit owner. Its also possible, the insurance settlement included language that will not allow the condo group to be reimbursed for the loss and also go after more money from other people. Double dipping. Many issues here, get a lawyer.

LarryB13 (Arizona)
Posts: 4,099

Posted:

I agree with the above.

The condo association made a decision to purchase a policy with a $20,000 deductible and in so doing all owners collectively assumed that much risk. Without knowing much about insurance laws it would seem unfair to demand reimbursement from one person when all agreed to accept a risk in exchange for a lower insurance premium.

CherylO (Washington)
Posts: 2

Posted:

However, because the HOA received their deduction back from all homeowners, why do you think they have a right to now ask for it again from one homeowner? That is profit not re-imbursement. Do I have a mental block here? If so, so does everyone I have talked to. They all see it as profit because the HOA was re-imbursed already and ended up with no out-of-pocket loss. Now, to seek $20k from one homeowner when it was not his fault the fire started is wrong to my way of thinking.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By CherylO on 02/18/2013 1:06 PM
The boy was busy with graduation and hadn't yet insured it. Now the HOA has sent him a letter 31 months later stating he must re-imburse the Bluffs HOA $20k.

Cheryl,

Sorry for your loss.

What did the Board say the 20K was for?

Did it include legal fees?

Was your grandson making assessment payments?

Did the fire start in your Son's unit (as that is unclear)? If it did, perhaps, based off of the fire investigation report, the Association believes it's the owner's (now your grandson) responsibility to cover the deductible and will refund what was collected (prior to the report coming out) once they receive payment from your grandson.

You may want to consult with a local attorney.

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