condo Owner Faces Repair Bill After Insurance Denies Mold Claim, Points Finger at Association
West Palm Beach, FL – A local condominium owner is facing a perhaps hefty repair bill after their insurance company denied a mold claim, asserting the condominium association should be responsible for the damage. The dispute centers around whether the mold growth stemmed from a sudden,accidental event covered by insurance,or from the owner’s actions – specifically,maintaining a high air conditioning temperature.
The situation, detailed in a recent column by condominium law specialist Ryan Poliakoff of Poliakoff Backer, LLP, highlights a common point of contention between condo owners, insurance companies, and associations. The owner’s insurance company initially rejected the claim, stating the mold wasn’t the result of a “sudden and accidental loss,” a key requirement for coverage.
Poliakoff points out a critical flaw in the insurance company’s reasoning: “My problem with your insurance company’s analysis is that they’ve already acknowledged that this is not an “insurable event,” as it was not a “sudden and accidental loss.” So, if they didn’t think it was an insurable loss under your own policy, I don’t see why they feel that woudl be different with respect to the association.”
This leaves the obligation for repairs to be persistent by the condominium’s governing documents, specifically the “declaration of condominium.” While associations typically cover ceilings and perimeter walls, Poliakoff cautions this isn’t universal and requires a thorough review of the specific declaration.
Though, even if the association is responsible for the physical repairs, the owner may still be on the hook for the costs. Florida’s Condominium Act allows associations to recoup expenses from unit owners found negligent.
“The Condominium Act further says that when any damage is caused by a unit owner’s negligence, the association is still responsible to repair the damage, but any amounts not collected from insurance can be collected from the negligent owner (by lien and foreclosure if necessary),” Poliakoff explained.
In this case, the association is likely to argue the owner was negligent in setting the air conditioning temperature too high, leading to the humidity and subsequent mold growth. While the owner could challenge this determination, citing potential building defects, Poliakoff suggests a legal battle would likely be costly and unsuccessful.
“It’s worth doing a detailed review to find out. But past that, it will likely be far more expensive to fight the association than simply repairing the damage in your unit, and I don’t think you’d have a high likelihood of success,” he wrote.
The situation serves as a reminder that condo owners are often ultimately responsible for damage stemming from their own actions, even when the association is initially obligated to make repairs.
Ryan Poliakoff, a Board Certified specialist in condominium and planned development law, dedicates his column to the memory of his father, Gary Poliakoff, and co-authored with him “New Neighborhoods – The Consumer’s Guide to Condominium, Co-Op and HOA Living.” Questions can be submitted to condocolumn@gmail.com, including location details.
