HO-6 Insurance company refusing to pay for damage

Started by JazzM • 5 replies • 1374 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

JazzM (New Jersey)
Posts: 17

Posted:

We have an interesting situation. One of the unit owners(Owner1) in our condominium complex had water leaking from his unit. His unit is above the garage of another unit owner (Owner2). This leak caused damage to the garage ceiling of Owner2. Owner2 informed Owner1 about the damage. So Owner1 went ahead and filed a claim with his HO-6 insurance company to get the ceiling repaired for Owner2.

Our by-laws state that a unit owner is liable to pay for damage to another unit if the damage was caused "due to the negligent act
or omission of or misuse" by him.

The insurance company denied the claim saying that Owner1 did not cause this to happen. The washing machine leak was not an act of "negligence or omission or misuse", so Owner1 is not liable to pay for this damage.

Owner2 is asking the Association for his alternatives. We have asked him to check with his own insurance company.

Have any of you run into this situation before? Any advice/suggestions?

TimB4 (Tennessee)
Posts: 21,062

Posted:

The owner of unit 2 should submit a claim to his insurance company and while submitting a claim, provide the information for unit 1 insurance. Then let the two insurance companies battle it out.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Jazz

Your situation is very, very common in multi unit buildings. It is not an association's issue. It is an issue between Owner 1 and Owners 2's insurance companies. It should be handled as Tim suggested.

Hope this helps.

JazzM (New Jersey)
Posts: 17

Posted:

Thank you for the replies. That was my assumption as well. Owner2's insurance company will go after Owner1's insurance company. We did ask Owner2 to file a claim with his own insurance company.

Thanks for the feedback again.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Posted By TimB4 on 04/24/2013 7:48 AM
The owner of unit 2 should submit a claim to his insurance company and while submitting a claim, provide the information for unit 1 insurance. Then let the two insurance companies battle it out.

Yep. Its still owner1's problem, even if he didn't purchase insurance coverage for the washing machine. If owner2 files a claim with his insurance company, and they battle it out, and owner1's insurance company still denies the claim. Owner2's insurance company will go after owner1 personally for the money.

Just because he didn't have coverage, doesn't mean he doesn't have to pay.

MatthewW4 (Arizona)
Posts: 500

Posted:

Sounds like an old Monty Python episode where the insurance adjuster tells the customer something like, "If you would have bothered to read the policy you would have found on page 3 our explicit statement that under no circumstances will we ever pay an claim made against this policy."

I agree with the above: let owner 2 file a claim with his own insurance and let the companies duke it out.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here