A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
← Return to Topics List

Owner not working with insurance to fix unit

Started by DavidP29 • 14 replies • 354 views

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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

DavidP29 (California)
Posts: 100
Posted:
Has anyone ran into an issue with an owner not working with the insurance to fix damage that was caused by a common wall sewer backup.

Here is the email from our insurance.

We worked on a claim together for a loss that occurred on 7/15/2021.  The unit owner and the HOA opted to use our Repair Program.  XYZ Construction estimated the damages for her unit and a small portion of the common area and attempted multiple times to get the repairs moving.  She has been very uncooperative with allowing them to complete any repairs so they have refunded the repair cost back to us which we owe to you.  I have previously asked the owner for the age of some of the building materials in her unit and she was not cooperative. 

In order to pay the HOA for the repairs, I need to apply recoverable depreciation to some of the building materials.  Our policy pays actual cash value until the repairs are made.

SheliaH (Indiana)
Posts: 6,964
Posted:
And you and your board has let this go on for over a year because...? I would have already referred this to the association attorney to send a demand letter (you agreed to use the repair program, so what's the problem?) Tell her if she continues to be so uncooperative, the HOA WILL take legal action against her to compel her to allow the workers to do their job. So buckle down and do yours.

If the repairs also involved her unit, I suspect she wants other stuff done that wasn't part of the deal and now she's pissed. Since this involved a sewer backup, I wouldn't be surprised if the master insurance (and possibly her own) said nyet to replacing damaged carpeting and what not because most homeowner insurance policies don't include water damage/sewer backup coverage and you have to buy that separately.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
DavidP29 (California)
Posts: 100
Posted:
Quote:
Posted By SheliaH on 11/02/2022 2:36 PM
And you and your board has let this go on for over a year because...? I would have already referred this to the association attorney to send a demand letter (you agreed to use the repair program, so what's the problem?) Tell her if she continues to be so uncooperative, the HOA WILL take legal action against her to compel her to allow the workers to do their job. So buckle down and do yours.

If the repairs also involved her unit, I suspect she wants other stuff done that wasn't part of the deal and now she's pissed. Since this involved a sewer backup, I wouldn't be surprised if the master insurance (and possibly her own) said nyet to replacing damaged carpeting and what not because most homeowner insurance policies don't include water damage/sewer backup coverage and you have to buy that separately.

The MC and board was just notified of this by the insurance company yesterday. Until this notice we assumed the work had been completed.

They are looking for following ages:

Carpet
Cabinets
Vanity
Vinyl flooring
Paint on walls
Parquet flooring

My guess is she wants to get more money for repairs.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Question? Is the repair for common area or their own home? A bit confused. If it's for their own unity they own, then they don't have to fix anything. If it was damage to the HOA common area then they have to fix the damage to the common area. I would not care about their own personal damages. It's what happened that our HOA insurance had to cover on our property.
Former HOA President
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By MelissaP1 on 11/03/2022 4:45 AM
Question? Is the repair for common area or their own home? A bit confused. If it's for their own unity they own, then they don't have to fix anything. If it was damage to the HOA common area then they have to fix the damage to the common area. I would not care about their own personal damages. It's what happened that our HOA insurance had to cover on our property.

Which planet did you just arrive from?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
This one Max. I need more details and less assumptions. Insurance works in mysterious ways if do not explain it right
Former HOA President
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By MelissaP1 on 11/03/2022 1:26 PM
This one Max. I need more details and less assumptions. Insurance works in mysterious ways if do not explain it right

So a person owns a SFR detached home in an HOA that had fire damage visible to the outside. Are you saying because it is not HOA common area, it doesn't need to get fixed?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Yes. I am saying if the person who owns the home does NOT have to fix their interior of their home. They do have to fix the SHARED common property outside. I believe the analogy has been brought up that your house is like a "box". If you turned that box upside down, whatever falls out is yours. The structure of the box is the HOA.

It would NOT be my PERSONAL preference. However, if one refuses to "play ball" then they have to live in the dug out. It's like having a car accident. The car still runs but leaks liquids. However, the bumper has fallen off and entire side is dented. I can't force you to fix it. Can drive it all you want that way. What can ask you to do is to clean up the oil stains it leaves behind.

The HOA insurance should have covered their portion. Not sure why they are not working with the owner's insurance company or pursuing a lawsuit for collections. Which is where I see this case going. It would be something would consider the HOA pursuing a lawsuit.
Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
My initial blush is an association cannot dictate internal repairs to a unit any more then they can dictate decorating taste. The exception is if the structural safety of the building is involved the association can demand and inspect the unit repairs. That said, how old some things are and in what condition they are, is no business of the association.
DavidP29 (California)
Posts: 100
Posted:
Quote:
Posted By MelissaP1 on 11/03/2022 4:45 AM
Question? Is the repair for common area or their own home? A bit confused. If it's for their own unity they own, then they don't have to fix anything. If it was damage to the HOA common area then they have to fix the damage to the common area. I would not care about their own personal damages. It's what happened that our HOA insurance had to cover on our property.

Damage was to their unit. The issue isn't fixing it but that there was a claim to insurance and they are trying to pay out the claim but she won't get specifics on how old her carpet and other items were. So the insurance doesn't know what to pay out.

DavidP29 (California)
Posts: 100
Posted:
For example, when a car is damaged in an accident and a claim is filed the insurance company will have you go to a shop to get the estimate and pay you.

In this case, there is a claim but she is refusing to take her car to shop. The insurance company can't determine how much of a check to write.

It would still be up to her to take the check and fix her "car" or do something else with it.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
So this is on the HOA insurance why?
Former HOA President
MelissaP1 (Alabama)
Posts: 13,836
Posted:
My friend house caught fire few years ago. They were given a choice. They could allow the insurance company to pay a Clean up company and cut a check for that or go through individually. The check was less with the cleanup crew because they had preset amounts for things value. So they have a list that carpet is x amount until you prove otherwise. If not you get the amount they have set. So it's on them to do it if not then tough.
Former HOA President
DavidP29 (California)
Posts: 100
Posted:
Quote:
Posted By MelissaP1 on 11/05/2022 5:39 AM
My friend house caught fire few years ago. They were given a choice. They could allow the insurance company to pay a Clean up company and cut a check for that or go through individually. The check was less with the cleanup crew because they had preset amounts for things value. So they have a list that carpet is x amount until you prove otherwise. If not you get the amount they have set. So it's on them to do it if not then tough.

I think it may come to this.

For your other question on why HOA.

Because the pipe that broke and damaged her unit is in the common wall and falls under HOA. It broke and damaged her bathroom and now she won't work with insurance.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Ironic enough someone else posted a similar post about insurance. It may be a situation where the HOA repairs their portion but not the owners. They may have to contact their own. Something smells a bit fishy on their end on this. It could be a hoarder situation, no insurance, or not understanding the process. The insurance should have a boilerplate of what it costs to replace each element. No frills cost.

I do not think can force them to fix their bathroom but the HOA does have to fix it's pipes and area.
Former HOA President

🎯 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

Terms of Use and Privacy Statement