Cohousing-L Mailing List: Re: Financial reponsiblity for water leaks

[John Carver (jcarver]

I so often hear about insurance companies that don't pay claims on what 
would appear to be straightforward. Ann, I have the feeling your case 
could have been pursued differently, and the insurer probably should 
have advised.

Point 1: It goes beyond the bylaws. Condominium ownership will be 
governed by some state legislation where you live. It differs from place 
to place. Where I live it's the BC Strata Property Act. (strata property 
= condominium)

2: There are two parts to home owners' insurance, 
comprehensive/specified perils and liability. The first pays for damage 
to your own home from accident, fire, etc.; liability covers damage to 
other persons or property caused by you or your property.

So while you can't make a claim for damage to common property, which is 
the responsibility of community as you say, you can likely make a 
liability claim if the community bills you for damages. That said, the 
insurer may still make it difficult, for instance requiring a prior 
assessment of damages, competing quotes for repairs, all invoices. In 
some cases insurers don't pay until there's a law suit.

Here in BC, in cases similar to yours, the courts have ruled that the 
homeowner is responsible for damage to common property resulting from 
events in the owner's home, regardless of whether it was a fault of the 
owner, or even without the owner's knowledge of the occurrence.

John Carver
Pacific Gardens Cohousing
Nanaimo, BC
http://pacificgardens.ca/

On 25/01/2014 8:42 AM, Ann Zabaldo wrote:
> Hi David and all --
>
> Boy -- this is one of those not easy things.  Mostly it depends on what your 
> by-laws say.
>
> I had a leak under my kitchen sink.  Some days later we found out that water 
> leaked down to the CH DR ceiling that is underneath my home.  I filed an 
> insurance claim to pay for the damage to the CH.  The insurance company 
> declined to pay because:
>
> 1.  I shut off the water immediately
> 2.  Called a plumber right away to respond to the problem in my house even tho' 
> it was after midnight thereby fulfilling my responsibilities as a homeowner for 
> the event.
> 3.  In our by-laws the interior walls and the CH DR were common property are 
> the responsibility of the community not the responsibility of the homeowner.
>
> I filed twice and twice the insurance company refused to pay citing the by-laws.