HOA Property Damage

Started by JerryD5 • 8 replies • 981 views

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JerryD5 (Colorado)
Posts: 218

Posted:

During a recent winter storm, a non-HOA member lost control of their vehicle and did extensive landscaping damage to HOA property. The damage resulted in the removal of a 10-year old tree and 4 mature spirea bushes. Our property manager has finally located the driver and has sent a demand letter to recoup our damages. It is our intention, once we collect, to replace the tree and the 4 bushes. Our PM included a copy of our landscaping company's bid for the project (approx $1200).

I assume the driver had insurance (the car had extensive front end damage from hitting a street sign and the tree). Would other boards go directly to the driver for the costs? Or have an attorney re-send a demand letter to the driver? Or finally, have our insurance company contact the driver's insurance company for payment?

DouglasM6 (Arizona)
Posts: 724

Posted:

You're going to need a police report.

MarkM19 (Texas)
Posts: 1,459

Posted:

You do need to contact the insurance carrier and let them know the HOA has property damage. This should be very easily handled. I would not advise paying a lawyer to do anything till you absolutely need them. They love to charge billable hours for stuff that is not needed.

KerryL1 (California)
Posts: 14,550

Posted:

How do your governing documents say the HOA must proceed to collect monies from Owners when they damage the common areas??

Our has a clause saying we can charge them for the damage. Our Rules & Regs say we must call them to a hearing for their side of the story. The hearing letter, assuming he really did it, would contain the CC&R clause and a copy of the estimate to repair the damage. Within xx days of the hearing, assess his account for the damages.

There's no need for a police report. I don't think our HOA would contact insurance on something like this.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

You may need the police report to help file an insurance claim if needed. I am sure if you file against the owner's insurance, they want proof that there is a report of the accident. Taking pictures of the after effect doesn't necessarily prove their car did the damage.

Now that doesn't mean this can't all be avoided by contacting them first to see how they react. If it's negative, then make sure to get a police report and contact insurance. Otherwise, ask them to pay the bill or get another quote if they would like for the same work.

Former HOA President

JerryD5 (Colorado)
Posts: 218

Posted:

I should have mentioned that we do have a police report. It listed the member's information and a description of the accident (he was going too fast for conditions and lost control of his vehicle). He is not a member of the association; he lives somewhere else in the area.

We have a board meeting tomorrow night. I suspect the member won't pay up willingly (its been past the 30 day demand for payment as stated in the letter). I will see if we can either go directly to his insurance company (we have that info too) or have our insurance company try to collect on our behalf.

Thanks for the answers so far.

JanetB2 (Colorado)
Posts: 4,219

Posted:

I would submit to your insurance company and let them pursue or follow their advice. They might ask you to contact the vehicle owner’s insurance to see if they will just pay and if they do not your insurance can then pursue the issue. That is why you pay for and have insurance.

BenA2 (Texas)
Posts: 1,273

Posted:

Quote:

Posted By JanetB2 on 04/16/2018 10:47 PM
I would submit to your insurance company and let them pursue or follow their advice. They might ask you to contact the vehicle owner’s insurance to see if they will just pay and if they do not your insurance can then pursue the issue. That is why you pay for and have insurance.

This is good advice. What you have is a common traffic accident and the member's insurance should cover it, regardless of what your CC&Rs say. Don't over complicate it.

JerryD5 (Colorado)
Posts: 218

Posted:

Update: Thank you to those that suggested to have our insurance company contact the driver's insurance company. That worked like a charm. The insurance company is cutting us a check for the common area damage. Im glad to have a community like this to ask questions and get sound advice.

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