condo โคOwner Faces Repair Bill After Insurance Denies Mold Claim, โPoints Fingerโ at Association
West โขPalm Beach, FL – A local condominium owner is facingโ a perhaps hefty repair bill after their insuranceโ company denied a mold claim, asserting the condominium association should be responsible forโค the damage.โ The dispute centers around whether the mold growth stemmed from a sudden,accidental event covered by insurance,or from the โขowner’s actions – specifically,maintaining a high air conditioning temperature.
The situation, detailedโข in a recent column by condominium law specialist Ryan Poliakoffโ of โPoliakoff Backer, LLP,โ highlights a common โpoint of contention between condo owners, insurance companies, and associations. The owner’s insurance company initially rejectedโค the claim, stating the mold โขwasn’t โขthe โขresult of a “sudden and accidental loss,” a key requirement for coverage.
Poliakoff โpoints out a critical flaw โฃin the insurance company’s reasoning: “My problem โwith 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 theyโค didn’t think it was an insurable loss under โขyourโข ownโข policy, I don’t see why they feel that woudl be different with respect to theโ association.”
This leaves โthe obligation for repairs to be persistentโข by the condominium’s โgoverning documents, specifically the “declaration of condominium.” While associations typically cover ceilings and perimeter walls, Poliakoff cautions this isn’t universal and requiresโฃ 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 โallows associations to recoup expenses โfrom unit owners found negligent.
“The Condominium Act further says that when any damageโข is caused โby a unit owner’s negligence, the association is stillโฃ responsible to repair the damage, but any amounts not collected from insurance can be collected from theโ negligent owner (by lienโค and foreclosure if necessary),” Poliakoff explained.
In this case, the association is likely to โargue the owner was negligent inโ setting โthe air conditioning temperature too high, leading to the humidity and subsequent mold growth. While the โขowner could challenge this determination, citing potential building defects, Poliakoff suggestsโค a legal battle would likely be costly and unsuccessful.
“It’s worth doing โคa detailed review to find out.โค But past that, it will likely be far more expensive โฃto fight the association than simply repairing the โคdamage in your unit, and I don’t think you’d have a high likelihood of success,” he wrote.
The situation serves โขasโ a reminder that condo owners are often ultimately โresponsible for damage stemming from theirโค own actions, even when the association is initially obligated toโ make repairs.
Ryan Poliakoff, a Board Certified specialist in condominium and planned โdevelopment law, dedicates his column โฃto โthe memory of his father,โข Gary Poliakoff,โ and co-authored with him “New โขNeighborhoods – The Consumer’s Guide to Condominium, Co-Op and HOA Living.” Questions can be submittedโ to condocolumn@gmail.com, โincluding location details.