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.
When questions come up about repair responsibility, it often helps to separate common elements from the individual unit. In many condo communities, responsibility can depend on whether the damage involves a shared part of the property or something located within the boundaries of a specific unit.
This distinction is one reason disputes can arise after contractor-caused damage. Understanding where the unit ends and where the association’s responsibility begins can provide important context before looking at any specific repair example.
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.
Another important part of reading the governing documents is understanding how the HOA’s master insurance may differ from a condo owner’s individual policy. These policies may apply to different parts of a loss, which is why owners should review how coverage is divided before damage ever occurs.
In practice, this means you should not assume that the association’s insurance and your own policy cover the same things. Reviewing both the governing documents and your personal policy can help clarify where coverage may begin and end.
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.
After damage is discovered, it is important to document the issue and follow any notice procedures that may apply. Keeping clear records and notifying the appropriate parties promptly can help support the next steps in resolving the matter.
These procedures may also be important when the time comes to work with the association, the property manager, or an insurance company. Having organized information about the damage can make the claims process easier to navigate.
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 serve clients across Washington, Idaho, Colorado, Oregon, and California. Since 1992, we’ve been offering multiple mortgage programs with flexible qualification criteria to borrowers across the Pacific Northwest, including our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Visit our website to get an instant rate quote or to use our online mortgage calculator. Or, contact us if you’re ready to get pre-approved for a mortgage.
Responsibility depends on the condo declaration, bylaws, and insurance provisions. In some communities, the HOA may be responsible, while in others the unit owner may need to repair the damage and file an insurance claim.
Yes. If the governing documents place repair responsibility on the unit owner, the owner may have to pay first even when the damage was caused during association work.
The owner should review the condo declaration, bylaws, and any maintenance or insurance sections that explain who is responsible for repairs to the unit, common elements, and limited common elements.
Condo insurance may help cover repairs inside the unit, subject to the policy terms, exclusions, deductible, and claim approval.
Filing a claim is often an appropriate next step if the unit has covered damage. The insurer may inspect the property and determine what losses are covered under the policy.
It may. Premium changes depend on the insurer, claim history, and policy details.
Helpful evidence includes photos, videos, repair estimates, dates of the work, contractor information, written notices to the HOA, and any visible signs of leaks, mold, or interior damage.
Payment responsibility depends on the governing documents and insurance coverage. The HOA may be responsible for some losses, but the unit owner may also need to use personal insurance for interior repairs.
These documents explain repair obligations, insurance requirements, and the association’s authority, which can directly affect who pays when HOA-hired contractors cause damage.
Yes. The HOA’s master policy may not cover all damage inside an individual unit, so personal condo insurance helps protect against unexpected repair costs.
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