insurance liability
My question is regarding whether or not an insurance agency might nullify a policy based upon “prior knowledge”. Here is the situation: We have erosion along a portion of our property that has resulted in damage to walkways and stairs, as well as retaining walls that is visible to the naked eye. We have residents reporting that they have cracks in walls and countertops inside their condo units that have resulted from these erosion-related changes, which they claim they have reported many times over the years. We have been told that a couple of the condo buildings (consisting of 3 adjoining units) are in danger of leaning and sliding due to the degree of erosion currently present and that it is just a matter of “when, not if”.
My questions are:
1) would the homeowner’s personal HO policy be nullified based upon negligence on the part of the HOA to rectify the erosion situation?
2) would the HOA’s insurance be nullified for the same reason if called upon to pay to restore any structures severely damaged enough by an erosion event to trigger a claim (ie- beyond the deductible amount)?
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Ronda,
I’m no insurance expert or attorney so I can provide you no legal advice on this particular matter. The erosion and impact to the structure of the condominium as common property is the responsibility of the association to maintain as a common expense for all homeowners. Whether their insurance policy will pay for damages cause by their lack of maintenance and upkeep would have to be specified in the policy itself. While it may be covered irrespective, I would suspect that there will be waiver of coverage based on failure of the association to take preventative steps to mitigate the damage caused by erosion before the damage occurs. I do not believe that your policy will be impacted by issues outside of your control.
Dennis
Thank you for your insight!!