Water Damage and Insurance

This should have read -

The pipes that caused the damage are on the ceiling of the common area garage / parking area.

I would pay the $50.00 deductible and leave your insurance company out of it for fear they will raise your rates.

First off: insurance can be complicated.

Who is responsible for repairs will depend on who owns what according to your CC&Rs, who pays for what according to your CC&Rs, and maybe what kind of insurance your HOA is carrying (all included vs. bare walls). The last item definitely matters in condos, maybe not in HOA with detached homes.

In your place, I'd call my insurance agent and let that person spell out my options. In some cases, if the cost of repair is close to your deductible, it can be better to pay out of pocket to keep your premiums down. Your association's deductible is pretty hefty, and typically that is covered by the your insurance (or should be). Whether or not negligence matters isn't clear. My association's agent said that it doesn't, it's strictly who pays for what according to the CC&Rs. Others here have said that it does matter. I expect it will boil down to exactly what the insurance policies say.

Probably not too helpful, but without knowing the exact language of the CC&Rs and insurance policies, I don't think I can provide concrete answers.

Because of the high number of claims, its very probable the deductible is $50,000.

Your CC&Rs Article on insurance will tell you who pays and it sounds like your HOA has a bare walls policy. My condo high rise is the same. So cite your Section of CC&Rs that seems to tell you the HOA's insurance would pay for your damage.

The HOA, if bare walls, will fix the common area pipes, but no improvements in your Unit. In our HOA, it would pay if it'd been negligent in maintaining the common area risers, etc.

I'm guessing you do mean $50,000, but our CC&Rs wouldn't even let you make a claim against the insurance.

The Deductible is $50,000

Jeff wrote: The "CC. & R Insurance Coverage clause seems to clearly protect me." What does it say, exactly, Jeff?

That is what I assumed it was 50K. That is not abnormal for an HOA deductible. I do not know what process you are trying to follow. Who determined it was HOA fault? Plus you go to your insurance first.

I had a tree fall on a power line. My deductible was 1K. The tree cost $1k for removal. After that the insurance covered the additional damages done to my electrical system. That was another 6K. Out of pocket was $1K. Plus my insurance rate could go up some or had to find new insurance in worse case scenario .

You do not go straight to the HOA to file a claim. It is best to go to yours so they may negotiate who fault is what. Even if it was the HOA it does not mean the repairs is as much as their deductible. You only pay that if it exceeded the deductible

CC & R's -

Insurance Coverage.

The Association shall have the power, authority and duty to obtain and maintain fire and extended coverage insurance covering both the exterior and interior areas of all Condominium Buildings, Condominiun Units and Townhouse Units (including, in each case. fixtures, installations or additions comprising a part of the building within the unfinished interior surfaces of the perimeter walls, floors and ceilings of individual Units initially installed, or replacements thereof, in accordance with the original Unit plans and specifications but excluding any improvements installed by any Owner, whether Or not approved by the Association).
Nothing contained herein shall be deemed to waive the Association's or Council's right to reimbursement. for damage caused to any Building or Unit by the willful or negligent act or neglect of an Owner, or the guest, tenant or invitee of an Owner. Earthquake insurance shall be negotiated on an

This says that your association has insurance on your unit, but they have a deductible, and usually the deductible is pushed onto the unit owner (or the unit owner's insurance). I'm assuming that the damage is less then the deductible, so your insurance will have to pay for pretty much everything.

Shelia pointed out that they may not even have coverage for sewer back up.

Just because your association has insurance does not mean that they have to pay for all damage. Again, they have that high deductible. Insurance only pays for damage over their deductible. Your association is only responsible to have insurance coverage, but they are not responsible for fixing everything.

That said, there's a possibility that you can collect on your association's liability insurance, which may not have any deductible, meaning they pay for all damage. They told you that the "pipes are cleared regularly so there is no gross negligence and they are not responsible." Well, maybe, maybe not. If they knew that the pipes had problems, then regular cleaning may not be enough, so they may be guilty of simple negligence and their liability coverage will pay for everything.

Extended coverage is "Extended Replacement Cost" which each of our policies equates to 125% of building cost.