With the recent spate of frigid temperatures, we have received numerous calls from condominium Boards of Managers about incidents of broken pipes due to freezing.
When the pipes thaw, water floods and damages the unit and, often, neighboring units and common areas. The board invariably accuses the homeowner(s) of negligence for failing to properly winterize the home before heading south for the winter, or for setting the thermostat too low. However, even if the claim of homeowner negligence is correct – and it usually is – the burden for fixing the unit in most communities will fall upon the board and its insurance coverage.
The governing documents of a condominium usually state that, in the event of a casualty (defined as a sudden and unexpected loss from fire or flood), the condominium’s insurance policy is responsible for repairing damages to the home, although not including upgrades and personal belongings such as furniture, clothing, etc.
Condominium boards should be repeatedly communicating to homeowners – by letter, newsletter, phone calls, e-mails, community meetings, bulletin boards and any other means available – of the need to properly care for the home, and especially its water pipes, during the winter months.
Frequent claims to your insurance carrier for damages due to burst pipes will likely cost the community tens of thousands of dollars in increased insurance premiums in the years to come. Homeowners should be made aware of this potential liability.
Can a condominium board shed this responsibility by amending its governing documents to shift the costs onto those negligent homeowners?
The simple answer is “Yes!” Reality, however, is rarely simple. While such a measure would lower the cost of the condominium’s insurance policy, it will have the opposite effect on the individual insurance policies of each homeowner. Will a supermajority of homeowners vote for a proposed amendment that will result in an increase in their home insurance costs? Not likely.
