Condo owner with no homeowner insurance

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Condo owner with no homeowner insurance

Post by huy178 » Wed Mar 13, 2019 5:13 pm

I live in a condo, unit 2 floors above me had a water leak which caused damage to my ceiling.

Estimate to repair is $500

Owner told me he has no insurance, unit is currently in a short sale, unit also has a lien for condo maintenance.

I was thinking of calling up his mortgage holder and try to file a claim with them.

Also going to ask condo board to add my damages to lien.

Any recommendations?

Thank you

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Re: Condo owner with no homeowner insurance

Post by RickBoglehead » Wed Mar 13, 2019 5:17 pm

Your insurance will cover it, and they should put a lien on the property.
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Re: Condo owner with no homeowner insurance

Post by Goal33 » Wed Mar 13, 2019 5:19 pm

I think your insurance would cover it... but I'm not sure how the deductible aspect works in this regard... good luck
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Re: Condo owner with no homeowner insurance

Post by Beach » Thu Mar 14, 2019 10:01 am

Condo insurance covers everything outside your walls/including the actual wall/ceiling. If the ceiling is damaged due to flooding, the condo insurance should cover the replacement of the ceiling to the original condition. Your personal insurance should cover everything inside your walls (water leaked onto your couch, carpet, etc)

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Re: Condo owner with no homeowner insurance

Post by DarkHelmetII » Thu Mar 14, 2019 12:07 pm

For a $500 loss I would try to figure out impact to your own insurance costs if filing a claim. Is a "claims free" discount listed on your policy? Can you get a "ghost quote" assuming a recent claim?

Just don't want you to file a claim for $500 and jack up your own insurance $100 - $200 / year for several years.

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Re: Condo owner with no homeowner insurance

Post by jbmitt » Thu Mar 14, 2019 12:31 pm

You have to establish negligence on the other condo unit for them to be responsible and to pay on your behalf. Unless they knew of the condition and didn’t do anything about it, they may not be negligent.

Just because they’re uninsured, doesn’t mean they’re automatically at fault. For $500 bucks I’d take care of it myself, because it’s also likely below your deductible.

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Re: Condo owner with no homeowner insurance

Post by sergio » Thu Mar 14, 2019 12:40 pm

Have you spoken to HOA? There's always a small chance they may propose a more favorable solution.

Otherwise I agree with the suggestion that it may be less hassle and actually better in the long term to just cough up the money out of pocket (and maybe try to pressure the other owner into reimbursing you - can't hurt, but I wouldn't take it too far.)

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Re: Condo owner with no homeowner insurance

Post by boglerdude » Fri Mar 15, 2019 1:40 am

The HOA is responsible for inside the walls, ideally they'd repair the damage and bill the offending unit.

You could make polite comments about an insurance or small claims imbroglio complicating the short sale, to the owner and the Realtors.

A water damage claim could raise your rates and blacklist you from getting a new policy with some insurers.

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