Insurance Claim

Started by ArjunS1 • 10 replies • 402 views

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ArjunS1 (New Jersey)
Posts: 4

Posted:

I live in a condo which has 5 floor in NJ in Hackensack. The developer still sits on the board with max seats and has veto power as all the units are not sold.

One of the unit on 4th Floor had a bad sprinkler(caused by building contractor hired by building management who was trying to fix it) and due to which 5 units got damaged, The claim was about 200K from the insurance.

We got a check from the insurance after deducting deductible for the work to proceed. But we were informed as the claim exceeds $50K, there has to be a trustee and a construction management company involved to disburse the amount and to get the repairs completed. The unit owners were not given the funds to get the work done by themselves.

I feel with the damages including all 5 units we might end up with some excess cash, I'm just throwing in a number 20-25K left after the work is done by the building contractor who so ever the building managing company hires.

Can that remaining fund be put in the reserve funds or can it be used to offset an assessment the building is already undergoing? Is there a NJ Condo Law that prohibits it from doing so?

Thank you for reading and sharing your knowledge in this matter.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Arjun

Can you blame them for wanting oversight. Picture owners getting the money and not having the work done properly thus maybe effecting the integrity of the building. Picture some taking the money and running thus letting mold build up in their unit and it not discovered until it spreads.

In our HOA, our association is co-payee on insurance claims to be sure repairs are done properly.

ArjunS1 (New Jersey)
Posts: 4

Posted:

John, I do understand that we need oversight and agree to it.
My question was is in regards to the excess money after the work is completed by the contractor.
As the insurance company has already paid the claim via check, the contractor is paid for his work, can excess money be used against offsetting our on going assessment or do we need to give the money back to insurance company in NJ?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Good Question.

Something to ask the insurance company.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Might I suggest the extra money be used for a nice vacation for the BOD. Perhaps not.

MichaelS56 (Minnesota)
Posts: 858

Posted:

Our association placed the excess money into a separate account that was run by the Board. This money was eventually used for association enhancements in the common grounds.

LetA (Nevada)
Posts: 2,679

Posted:

Perhaps that money belongs to the people that suffered the loss and any excess should be divided among them.

ArjunS1 (New Jersey)
Posts: 4

Posted:

That would be an Ideal World

.

I'm one of the owners who's condo is affected. That is the reason I know more about the situation.
The building management contractor is charging exuberant amount for all the work he is doing.
Initially when we had the problem in late November I had a contractor who came and inspected the damages and gave me a quote. But than the decision came that no work should be done by owners to fix their condo, as the building insurance is going to foot the bill to bring back the condos in original condition.
So I could not get my insurance pay the contractor. I'm still living in condo with floor gutted.

This contractor who is from the building management, they are charging approx. 35-40% more than the contractor that I had got while I was pursuing a claim from my condo insurance.

This whole condo thing is so Messy. Feels like Management is hand in glove with the contractor.
When I question the management, they come back saying "we will have zero out of pocket" from association.
That is a good thing, but I'm trying to have excess cash from the insurance to offset our freaking assessment that we are paying of approx. $100 a month. for next 18 months

Thank you all, feel good to share

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Arjun
Is you contractor licensed, insured, and bonded? Is the one the association is using licensed, insured, and bonded?

ArjunS1 (New Jersey)
Posts: 4

Posted:

John,
The contractor I got to check initially was licensed and insured. Not sure what you mean by Bonded.
Management contractor is a big company(want to keep that anonymous), of course must have all that is need in terms of licenses and permits for repairs and restorations.
Thanks, Arjun

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By ArjunS1 on 02/23/2021 9:42 AM
John,
The contractor I got to check initially was licensed and insured. Not sure what you mean by Bonded.
Management contractor is a big company(want to keep that anonymous), of course must have all that is need in terms of licenses and permits for repairs and restorations.
Thanks, Arjun

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