May 5, 2010

Hurricane damage occurred to a condominium complex in 2005. Due to claims issues, a settlement was not reached until 2009. Due to code and/or ordinance law, the condominium complex had to have hurricane resistant glass installed as well as sprinklers in all units. The work was done in 2010 and walls and ceilings were opened to install the sprinkler system. The association took care of the costs for the glass and installation of the sprinkler system. However, they advised the unit owners that cleanup and redecorating was the responsibility of each unit owner. The insured filed a claim with his carrier for repairs as a result of the hurricane. The carrier denied the claim based on no direct damage from the hurricane. Does the insured have a viable claim under his condominium policy?

Florida Subscriber

The carrier is correct; repairs because of damage due to the repairs made by the association are not a named peril in the standard HO 06. Ordinance and law are excluded under the HO 06 as well. However, what defines a unit according to state statute and the condominium documents is important. If the unit includes the ceiling and walls, then it’s the insured’s responsibility, even though the association caused the damage. Maybe the unit owners can get together and work out a deal with a repair company for all units at a discount.