QUESTION
Am I responsible loss of use of downstairs Untit?
Asked on Oct 11th, 2015 on Real Estate - California
More details to this question:
Over a year ago the pipe connecting to toilet tank burst causing water to leak to my and downstairs unit. I own the upstairs unit. Both unites were tenant occupied and neither one of us has HO-6 policy. I opened up a claim with the HOA's insurance. They created one claim for both units since they considered this as Sudden with no fault. They issued a check for total cost less deductible. I ended up paying the $5000 deductible. (cost of my repairs and paying the balance to HOA) The downstairs unit's construction took about two months and it was paid completely by the insurance. The downstairs unit filled a small claim for little less than 10K for two months loss of rent, placing the tenants in a hotel and paying for them, additional charges for their food, Laundry charges, and travel cost for the landlord. We lost the small claim, and appealed the decision. Am I I liable for all the charges they claim? If they had HO-6, would this be covered under their policy? Thank you,
1 ANSWER
Why did the HOA's insurance company pay for the repairs? If the repairs were the HOA's responsiblity, then why aren't the damage to the two units and the tenants' expenses also covered under the HOA's liability policy?
The cost of having a lawyer find this out for you, by subpenaing the records of the insurance company and the contractor, could easily exceed $10,000.00. If it turned out that the HOA and the insurance company are correct, then you would also owe them reimbursement for their attorneys fees. So you could end up with an attorneys fees bill of $20,000 or $30,000.
However, you're correct that this does not sound right. If the HOA is at fault for the failure of its water pipe, why are you responsible for the tenants' expenses.
Good luck.
Dana
Answered on Oct 19th, 2015 at 5:31 PM