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When you opt for contractors hired by your HOA, what happens when repairs don’t come out as planned? Moreover, who is responsible when there is condo damage caused by contractors you didn’t hire? This article can help provide answers.
For those who live in a condo in WA, ID, OR, or CO, they know that there are numerous advantages that come with this living arrangement. Living in a condo means that other people are going to be responsible for landscaping and common areas, so you don’t have to. It’s as maintenance-free as it gets.
Plus, condos tend to have plenty of amenities right within the building or complex, such as gyms, pools, and party rooms. And they are usually in closer proximity to city centers for even more convenience.
Finally, condos tend to be more affordable than single-family homes, making them easier to pay for and finance while allowing you to build equity in the home.
But at the same time, the HOA has quite a bit of power. These organizations can restrict how you can decorate the outside of your home, what types of vehicles you can park on your driveway, as well as what types of pets you can have in your home, if any, at all.
But one of the biggest concerns that people might have with HOAs involves who pays for the damage in the event that something in the building has been damaged. There are a few important points to keep in mind in the event that you have condo damaged caused by contractors hired by your HOA.
Sometimes, the HOA might hire contractors to work on the roof. During this process, there might be a leak that develops in the roof. This could leak through and damage condos that are on the top floor of the building, which can damage the kitchen ceiling and cause mold and mildew build-up as well. The association might try to get out of paying to fix certain damages and may try to pass on the bill to the condo owners.
It is important to note that those who live in a condo building in Colorado or Idaho buy into everything that goes along with ownership. And that includes the property management company and the contractors that are hired by the manager.
Who is responsible for paying for roof damage depends on the details of the HOA agreement? More specifically, if the agreement states that any issues with the roof are not covered, then the owners will have to pay for repair services.
When people move into a condo building, there are certain bylaws they agree to follow. Sometimes, this packet might state that the unit owner is responsible for any damage to a unit that is caused by the association.
The bylaws usually state something along the lines of “unit owners need to have homeowner’s insurance.” In this case, the insurance carrier should help the unit owner cover some of the costs of the repairs.
If the condo documents are drafted this way, then the unit owner is responsible for the repairs or the condo damage caused by contractors/hired HOA professionals. It might not sound fair, but if it is stipulated in the document in this manner, you and all other owners may be stuck having to pay the bill if the property management-appointed roofing contractor damages the roof.
This is why it is so important that you go through the HOA documents in great detail so that you fully understand what your obligations are, both financially and in how you enjoy the property. A real estate lawyer may help you go through these documents before you purchase a condo, so you know exactly what you are buying into.
While the condo building or complex will have its own insurance, you would be well-advised to get your own insurance policy in place to protect yourself from the unforeseen.
While this might not sound like a perfect solution, the unit owner might still not have to pay for the damages. This is why unit owners in Washington or Oregon need to have home insurance.
If you do have an insurance policy in place, the next step should be to file a claim with the home insurance company. This claim might be able to cover the cost of the repairs that were caused by the contractors hired by the HOA.
Keep in mind that filing a claim may or may not increase your premiums each year. Be sure to inquire about this before the claim is put through.
Also, you will need to provide proof of the condo damage caused by contractors hired by your HOA, as well as a few other important pieces of information so that the insurer can accurately process your claim. In many cases, an in-person visit to the complex may be required.
The situation of an HOA-appointed contractor causing damage to a condo can be a sticky one, especially when it comes to who is responsible for paying. In many cases, the HOA will pay. But in others, they may try to pass on the bill to the condo owners.
Make sure to do your due diligence and be prepared with a condo insurance policy in place.
Are you curious about mortgages, or are you ready to apply for one to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.
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