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Common Elements and Insurance

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CondoBoardGuy

Junior Member
What is the name of your state (only U.S. law)? Illinois

I'm a board member of a 19 unit condo building in Chicago. We have, for some time, had no issue regarding damage to units and insurance claims. Our by-laws are old but basically standard and state that the association is responsible for damage to common elements and includes the units ceilings and walls up to but not including paint. To limit our liability, the association created an insurance document that I’ve pasted the details of below.

We are currently dealing with an issue where a resident is attempting to file a claim on the assoc. policy on damage that occurred OVER A YEAR ago to their ceiling due to a leaking overflow pipe on their upstairs neighbor's bathtub.

The upstairs neighbor, who has not owned the unit for some time informed the owner that their insurance denied the claim because it is the associations responsibility and the downstairs unit owner tell us her insurance told her to go to the association.

While we specifically state that the association is liable to damage caused by common elements, I am wondering if this is superseded by whatever the Illinois Condo Act states (I did some research and it appear to be that it can be interpreted different ways. )

Any help on whose responsibility this is would be greatly appreciated.

Owner Insurance Policy:
Each unit owner is required to obtain insurance on the contents of their own unit. This should include additions and improvements, decorating, furnishings, personal property and personal property stored elsewhere within the building. The Association’s insurance covers common areas only, and does not cover individual units or personal property of unit owners. For damage sustained in individual units from a common source, the building insurance covers inside the unit up to, and including the primer coat of paint. All other damage sustained is the responsibility of the unit owner’s personal insurance.
In addition to the insurance referred to above, each unit owner is required to obtain and maintain Liability insurance covering your personal liability for property damage to other units, the common areas or personal injury to any person as a result of anything that may occur in or from your unit, or acts of the unit owners and/or their guests.
 


HomeGuru

Senior Member
What is the name of your state (only U.S. law)? Illinois

I'm a board member of a 19 unit condo building in Chicago. We have, for some time, had no issue regarding damage to units and insurance claims. Our by-laws are old but basically standard and state that the association is responsible for damage to common elements and includes the units ceilings and walls up to but not including paint. To limit our liability, the association created an insurance document that I’ve pasted the details of below.

We are currently dealing with an issue where a resident is attempting to file a claim on the assoc. policy on damage that occurred OVER A YEAR ago to their ceiling due to a leaking overflow pipe on their upstairs neighbor's bathtub.

The upstairs neighbor, who has not owned the unit for some time informed the owner that their insurance denied the claim because it is the associations responsibility and the downstairs unit owner tell us her insurance told her to go to the association.

While we specifically state that the association is liable to damage caused by common elements, I am wondering if this is superseded by whatever the Illinois Condo Act states (I did some research and it appear to be that it can be interpreted different ways. )

Any help on whose responsibility this is would be greatly appreciated.

Owner Insurance Policy:
Each unit owner is required to obtain insurance on the contents of their own unit. This should include additions and improvements, decorating, furnishings, personal property and personal property stored elsewhere within the building. The Association’s insurance covers common areas only, and does not cover individual units or personal property of unit owners. For damage sustained in individual units from a common source, the building insurance covers inside the unit up to, and including the primer coat of paint. All other damage sustained is the responsibility of the unit owner’s personal insurance.
In addition to the insurance referred to above, each unit owner is required to obtain and maintain Liability insurance covering your personal liability for property damage to other units, the common areas or personal injury to any person as a result of anything that may occur in or from your unit, or acts of the unit owners and/or their guests.
**A: and what do you want to see happen? Where is your HOA legal counsel? Was it determined as to who is responsible for the leaking overflow pipe?
 

CondoBoardGuy

Junior Member
We are a small assoc with no legal council on retainer and wish to avoid the expense. This morning, the resident with the damage forwarded denial letters from the neighbor's insurance citing section 4.1 of the Il Prop. act.

The resident also is awaiting a letter of denial from her own insurance.

Based on what I read of the act, the insurance finds the association liable. If we must pay we must but I fear setting a precedent. My question is, does the association's policy on insurance protect us in any way? Also, the fact that we are finding out about this over 18 months after it occurred also makes me question the legitimacy of the claim.
 

Some Random Guy

Senior Member
The section cited (4.1) deals with what is considered part of the condo and what is a common element. Sections 3 and 4 would seem to indicate that the overflow pipe is a part of the condo unit and not a common element.

Illinois Condominium Property Act

Your condo association should look for local legal counsel. Its not as expensive as you think to have a relationship with an attorney. The real expense of an attorney comes when you need him to go to court for you.

I would suggest that the lower tenant should sue the upper tenant for the damages caused.
 

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