Quote:
Originally Posted by dad911
Now that the govt has made a decision to take and destroy the remaining units, do those owners get reimbursed for their pre-collapse values? Who pays for the cleanup, who owns the remaining property?
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The property ownership will remain in the hands of the association at least for now. If the city paid for demolition and clean up it will most likely have liens until it gets paid.
Insurance pays replacement cost not "value". It will be interesting to see how this plays out. Insurance does not typically pay for losses due to lack of maintenance. Hidden or latent defects are typically covered so long as the damage is from a covered peril.
It seems the structural issues with this building are well document have existed for several years and conveyed to the association so they have knowledge of the problems.
The building no doubt is inspected by the insurance company on at least every other year for insurability.
However "collapse" is not a covered peril in many insurance policies.
The part of the building that remained standing and intentionally imploded, I think those people may be SOL all the way around. The building may have been structurally unsound either due to the collapse or the structural issues due to lack of maintenance and imploded. But none of those issues are "covered perils". That portion of the building was also technically undamaged.
Lastly, if the association and/or unit policies had a building ordinance or law endorsement there may be some relief from insurance in that regard.