Quote:
Originally Posted by MBAtarga
Let's say that repairs had been made in a timely fashion, but the building still failed unexpectedly. Then the county/gov comes in and demos the rest of the building. Would HOA insurance pay claims for those units that were demoed?
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The short answer is no. There could be recourse against a contractor, architect, engineer, or the city in that scenario. But again in short those units did not sustain damage as a result of a covered peril.
Take your house for example if you had a fire and half burnt down, the insurance pays for that half if the city then requires you to tear down the other half the carrier will take the position we understand, but it was not damaged. This is where the ordinance or law coverage comes into play and [U]would[U]pick up coverage to the O/L coverage limit.
EDIT
Let me also include the HOA property insurance
DOES NOT cover the units. It covers association owned property, the common and limited common elements. Common elements might include the main structure, pool, pool deck, lobby, grounds etc. Limited common elements may include balconies, entrance doors to units, maybe even a parking space. This is all subject to the master deed and by-laws. UNITS- have a separate policy for the owners property and possessions, this is known as an HO-6 (think homeowners policy with out covering the house.)