Condominium Law and Water Leaks
A common scenario encountered by Condominium Associations is the water leak into a unit from the common elements outside the unit OR from adjoining units. Under the best of circumstances this is a complex scenario that could involve up to 6 parties.
- The Association
- The Association's Insurance Company
- The Adjoining Unit Owner
- The Adjoining Unit Owner's Insurance Company
- The Unit Affected Owner
- The Unit Affected Owner's Insurance Company
In Florida, on July 1st, 2008 a new Condominium insurance law took effect. This law is found in Section 718.111 of the Florida Statutes. This new law covers many areas but I am going to address the most common questions about the new law as it relates to the water leak into the unit scenario:
WHO INSURES WHAT?
According to the Florida Statutes, the Association's policy of hazard insurance covers "all portions of the condominium property as originally installed or replacement of like kind and quality, in accordance with the original plans and specifications" EXCEPT "all personal property within the unit or limited common elements, and floor, wall and ceiling coverings, electrical fixtures, appliances, water heaters, built-in cabinets and countertops, and window treatments or replacements of any of the foregoing.
This means that the Association insures everything except those items expressly excluded by the Statute, including but not limited to tall drywall and a/c components inside and outside the units.
Thus, in the typical leak into the unit scenario, the Association's insurance covers ALL drywall in the unit for losses caused by a covered hazard. The Association's insurance also covers all other damage except that caused to the excluded items listed above.
Note, not all events that might cause damage are covered by hazard insurance, for example the break down of an a/c unit caused by age or normal wear and tear is not a covered hazard under the Associations insurance.
WHO MAKES THE REPAIRS? WHO PAYS FOR THE REPAIRS?
According to the Florida Statutes "any portion of the condominium property required to be insured by the association against casualty loss which is damaged by casualty shall be reconstructed, repaired, or replaced as necessary by the association as a common expense."
This means that the Association makes all repairs and pays for all of the repairs to the items covered by the Association's insurance.
CONCLUSION:
There are certain exceptions in the condominium insurance law for limited common elements, owner constructed improvements and other matters. Therefore, the answers to the above questions are considered general and not applicable in every situation. However, these are solid guidelines that Association and condo owners can use in helping determine responsibility when leaks occur.
Should you have any questions regarding the Association's responsibility of a leak or need help clarifying a particular situation you are experiencing, please do not hesitate to contact your property manager.
