Florida Condo Owner With Mold Damage or Water Damage due to Condo Water Leaks? What Happens if the Condo Association Refuses to Pay?

Florida Condo Water Leaks_fightsforyou.netAll too common down in South Florida, condominium owners get that phone call from condominium security that they hear about from other unit owners but never expect to get themselves — you need to come home now, you have a condo water leak in your unit and it needs to be dealt with immediately, or the hot water heater or washing machine has burst in the upstairs unit in the floor above you (or your next door neighbor’s unit, ie., unit to unit water intrusions) and the whole line of condos down your unit line is flooded.  When these types of water leak incidents occur, not only is their water damage to the common elements (drywall, ceilings, interior wall air crevices, windows, etc.), but personal property is usually ruined (furniture, paintings, wood floors, the paint on the walls starts to bubble, the floor or wall tile becomes loose, the ceiling fans no longer work, the kitchen cabinets start to warp and come apart, etc.), the repair and remediation process takes a long time such that as a Florida condominium owner, renter, resident or tenant, there is the loss of use of the condominium unit, and mold damage can result in a very short period of time (which can cause an owner or tenant to suffer from nasal or respiratory illnesses, an allergic reaction and/or other bodily injuries) if the water damage is not dealt with in a quick manner (usually by a Florida licensed and certified water and mold remediation company).

A question often asked of a Florida condo water leak lawyer is who is liable (or at fault) and responsible for paying for these types of damages caused by Florida condo water leaks, who is responsible for fixing the damage, and what insurance applies to pay for these types of damages when the condominium association refuses to accept their fault and responsibility to pay for mold remediation and build out of the condo unit.  The answers to these questions can depend on a multitude of factors, but the primary concerns will be:

  1. What is the source of the condo water leaks (ie., from a burst pipe inside the drywall that is a common element under the buildings declaration of condominium versus from a burst water heater, leaky faucet or garbage disposal, or pipe under your sink that is personal property to be maintained by the respective unit owner or tenant that lives above you, next door or on the second floor);
  2. What type of property damage was done (ie., common elements versus personal property or fixtures, water damage versus mold damage);
  3. Who caused the condo water leaks (ie., another owner or tenant of a neighboring unit because they were negligent in replacing an already leaky water heater, dish washer or air conditioning unit, a unit owner or tenant who hired a plumber, electrician or air conditioning contractor to do maintenance who then broke a pipe and caused a flood, or the condominium association as a result of their failure to maintain the building’s common elements such as the roof, pipes inside the walls, stucco on the exterior of the building, sewer pipe stacks, etc.);
  4. What caused the condo water leaks (was it a toilet or hot water heater that continued to leak over over time such that the unit owner would be negligent in maintaining there unit or is it a common element roof leak that happens suddenly because of a Hurricane, tornado or hail storm); and
  5. What types of insurance are available (ie., a Florida condominium homeowners (or renters if by way of a tenant) insurance policy versus a commercial general liability (CGL) insurance policy for a condo association’s failure to maintain its common elements versus commercial property insurance policy for repair of the condominium building when causalities such as Hurricanes or tornado’s occur) and what types of water damage, property damage or mold damage does the insurance cover.

A Florida condo leak lawyer will have to deal with these questions and answers to same, in assisting a unit owner, tenant or resident in recovering money to get the damage fixed, and forcing the appropriate insurance company or entity to fix the condo. The primary sources of Florida law that could be applicable are the declaration of condominium (and the condo’s by-laws, rules and regulations and articles of incorporation), Chapter 718 of the Florida Statutes (statutory duties which govern Florida condominiums, including the association’s responsibility to maintain its common elements, and the condominium’s insurance requirements for casualties and other damage events), and Florida insurance law regarding what types of damages may be covered under certain situations (such as condo water leaks caused by wear and tear as opposed to causalities that occur suddenly and unexpectedly, or whether mold damage may be excluded under the insurance policy). For an extensive discussion on a Florida condo water damage loss from a condo unit above, upstairs or next door to you, see my prior article.

Of note, Florida Statute 718.111(f) sets forth the requirements of a condominium’s insurance coverage and what portion of the property the building is required to insure:

(f) Every property insurance policy issued or renewed on or after January 1, 2009, for the purpose of protecting the condominium must provide primary coverage for:

1. All portions of the condominium property as originally installed or replacement of like kind and quality, in accordance with the original plans and specifications.

2. All alterations or additions made to the condominium property or association property pursuant to s. 718.113(2).

3. The coverage must exclude all personal property within the unit or limited common elements, and floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments, including curtains, drapes, blinds, hardware, and similar window treatment components, or replacements of any of the foregoing which are located within the boundaries of the unit and serve only such unit. Such property and any insurance thereupon is the responsibility of the unit owner.

If you get that call that there is water and mold in your condo unit as a result of condo water leaks, immediately notify the condominium association (whether the president, vice-president or other board member), property manager or security so that the appropriate action can take place to either notify the other unit owner or tenant of the water coming from their unit, or the association can immediately start the dry out process assuming common elements have been damaged.  You may also want to send a letter certified mail return receipt to the association (or the other unit owner if the water originated from an upstairs unit above yours) putting them on notice of their potential responsibility in the matter, and seeking an insurance disclosure under Florida Statute 627.4137, which provides the following:

627.4137 Disclosure of certain information required.—
(1) Each insurer which does or may provide liability insurance coverage to pay all or a portion of any claim which might be made shall provide, within 30 days of the written request of the claimant, a statement, under oath, of a corporate officer or the insurer’s claims manager or superintendent setting forth the following information with regard to each known policy of insurance, including excess or umbrella insurance:
(a) The name of the insurer.
(b) The name of each insured.
(c) The limits of the liability coverage.
(d) A statement of any policy or coverage defense which such insurer reasonably believes is available to such insurer at the time of filing such statement.
(e) A copy of the policy.
In addition, the insured, or her or his insurance agent, upon written request of the claimant or the claimant’s attorney, shall disclose the name and coverage of each known insurer to the claimant and shall forward such request for information as required by this subsection to all affected insurers. The insurer shall then supply the information required in this subsection to the claimant within 30 days of receipt of such request.
(2) The statement required by subsection (1) shall be amended immediately upon discovery of facts calling for an amendment to such statement.
(3) Any request made to a self-insured corporation pursuant to this section shall be sent by certified mail to the registered agent of the disclosing entity.

As the unit owner, you also have the duty and responsibility under Florida law to mitigate your damages regardless of who has liability and caused the condo water leaks.  As such, you should assist in the dry out process by protecting your condo unit and personal property from further water damage or mold damage. For an extensive discussion on Florida condominium owner insurance claims or lawsuits when a unit owner has water damage and wanting to know what the association’s insurance may cover, see my prior article.

Moral of the Story: if you own, rent or reside in a Florida condominium and the condo unit sustains water or mold damage from a unit upstairs, the unit above, or even a next door neighbor, or condo water leaks result from a failure of the association to maintain its common elements, whether the condominium is located in Orlando, Marco Island, Davie, Tampa, Sunrise, Pembroke Pines, Fort Myers, Tamarac, Coral Springs, Hollywood, Allapattah, Miami Gardens, Aventura, Naples, South Beach, Kendale Lakes, The Hammocks, North Miami Beach, Hialeah, West Kendall, Homestead,Pinecrest, the Florida Keys, Weston, Florida City, Palmetto Bay, Miami Shores, Sunny Isles, Golden Beach, Miami Lakes, West Palm Beach, Key West or another area within Miami, Fort Lauderdale or Palm Beach, or anywhere in Miami-Dade County, Broward County, Palm Beach County or Monroe County, know that the complexities of such a Florida condominium water loss will usually require the retention of a Florida condo leak lawyer or Fort Lauderdale condo mold damage attorney to investigate the water loss and figure out what insurance may be applicable, who may be liable, at fault, or responsible for fixing the water damage (may take experts such as engineers, public adjusters, plumbers, architects, general contractors, etc.), and who may be responsible for paying for the property loss and mold damage when a condo association won’t pay due to the condominium unit’s water damage or mold damage being under their insurance deductible.

Florida Condominium Damage Claims for the Association’s Failure to Maintain the Building’s Common Elements – Is Alternative Dispute Resolution Required Prior to Filing a Lawuit?

Under Florida law, when a unit owner sustains damage to their condominium whether by water or mold, due to the Association’s negligence in failing to maintain a common element (to wit, the exterior wall of the building, roof, interior wall pipe that services multiple units, air conditioning stack that services multiple units, sewage pipe/stack that services multiple units, windows (if the Declaration states this is a common element), etc.), they are not required to seek or submit to alternative dispute resolution (ADR) avenues prior to filing suit.

According to Florida Statute §718.1255,  a statute governing condominiums and alternative dispute resolution, voluntary mediation and/or mandatory nonbinding arbitration, if a unit owner and its Association are involved in a “dispute” as defined under this statute, they are required to file a petition with the Division of Florida Condominiums, Timeshares, and Mobile Homes of the Department of Business and Professional Regulation, and seek an alternative dispute resolution avenue (non-binding arbitration, to which the arbitrator can refer the parties to mediation) prior to filing a lawsuit for damages, injunctive relief, etc.

Under §718.1255(1), a “dispute” means any disagreement between two or more parties that involves:

(a) The authority of the board of directors, under this chapter (Chapter 718) or association document to:

1. Require any owner to take any action, or not to take any action, involving that owner’s unit or the appurtenances thereto.

2. Alter or add to a common area or element.

(b) The failure of a governing body (ie., association), when required by this chapter or an association document, to:

1. Properly conduct elections.

2. Give adequate notice of meetings or other actions.

3. Properly conduct meetings.

4. Allow inspection of books and records.

Of note, a “dispute” does not include any disagreement that primarily involves: title to any unit or common element; the interpretation or enforcement of any warranty; the levy of a fee or assessment, or the collection of an assessment levied against a party; the eviction or other removal of a tenant from a unit; alleged breaches of fiduciary duty by one or more directors; or claims for damages to a unit based upon the alleged failure of the association to maintain the common elements or condominium property.

Moral of the Story: Whether you are a condo owner that lives in Coral Springs, Cooper City, Hallandale, Boca Raton, Homestead, Brickell, South Beach, Key Biscayne, Weston, Pompano Beach, Tamarac, Plantation, Delray, Deerfield Beach or another area within Miami, Fort Lauderdale or Palm Beach, if your unit sustains water, mold or any form of property damage due to the Association’s negligence in failing to maintain a common element, you are not required to seek or submit to alternative dispute resolution (ADR) avenues prior to filing suit.  While it is certainly recommended to attempt to resolve a property damage dispute with your Association (or another unit owner), if you are unsuccessful, you can simply file a lawsuit and recover your damages via the court process.

Florida Condo Owner Homeowners Insurance Claims – The Condo Above Me (Second Floor Unit Upstairs) Leaked, What Are My Options?

As South Florida Condominium owners know, many things can go wrong to cause water damage (and resultant mold) to their condominium unit.  One of the most common water intrusion events that can occur is when a neighbor’s condominium unit above yours  has a water loss or water leak, which then gets into your unit through the common elements.   Whether you live in Hollywood, Dania, Weston, Plantation, Aventura, Miami Beach, Bal Harbour, Coral Gables, Kendall, Pinecrest or another area within Miami, Fort Lauderdale or Palm Beach, many unit owners are seasonal (ie., snow birds) and are thus not around to maintain their units on a monthly basis.  As such, it is not uncommon, especially during the Summer, for a neighbor’s condominium unit above yours, the unit on the second floor, the unit next to yours (unit to unit), or the unit upstairs, to experience pipe leaks, burst pipes and plumbing, broken water heaters, shower pan leaks, a pipe burst in the washer, failed pipe in the dishwasher, failed toilet seals, toilet tank leaks, window leaks and/or other types of water intrusions and condo water leaks.  Reason being, no one is living in the unit for months on end to fix any problems that may arise.  When these types of losses occur, one may seek out a Florida condominium water damage insurance claim attorney or Florida condo leak lawyer to get some guidance on how to proceed in resolving Florida condo insurance claims of this type.

The first thing the lawyer will likely do is have you put your own homeowners insurance carrier on notice.  While there are certain exclusions in the policy, your insurance company may cover some or all of the damage such as providing payments for temporary/alternative living arrangements (ALE/loss of use), as well as temporary repairs like mold remediation (one has a duty to mitigate their damages).

As for the lawyer’s investigation,  the source of the water intrusion needs to be determined. Reason being, while the unit owner above may bear some responsibility, the Condominium Association may also bear some responsibility.  Thus, the attorney will probably direct his or her investigation as to whether the upstairs water loss originated from a common element or an item that is the responsibility of the unit owner.  A Declaration of Condominium typically classifies a common element (in relation to items which are a unit owners responsibility) as as anything not touching air, ie., everything behind the walls and ceilings minus the coverings.  As for the Florida Statutes,  718.108(1) states that common elements include: (a) The condominium property which is not included within the units; (b) Easements through units for conduits, ducts, plumbing, wiring, and other facilities for the furnishing of utility services to units and the common elements; (c) An easement of support in every portion of a unit which contributes to the support of a building; and (d) The property and installations required for the furnishing of utilities and other services to more than one unit or to the common elements.  Items which are not common elements and which would be the responsibility of the second floor unit owner, would include pipes underneath the kitchen or bathroom sinks,  a toilet seal that fails or a water heater that explodes.

Certainly, if it is determined that the unit owner above had been out of the condo unit for months on end and a water leak resulted due to to their failure to maintain the inside of their property, the unit owner above will likely have some responsibility.  In this scenario, hopefully they had homeowners insurance, such that a claim can be made to their insurance company.  Even in this scenario, the condominium association still may bear some responsibility for the damage to your unit.  Where water losses are caused by sudden and unforeseeable events (the condominium association will likely argue this type of event was sudden and unforeseeable), these types of losses are considered casualties.  When a casualty occurs, a condominium association’s insurance could come into play.  Pursuant to the Declaration of Condominium, the Association will have a responsibility to maintain, repair and replace common elements.  Pursuant to Florida Statute 718.113(1), maintenance of the common elements is the responsibility of the association.  As such, if you sustained damage to your drywall or ceilings due to a water leak from the upstairs condominium unit above yours (or your neighbor’s, ie.,unit to unit), the association may be responsible for repairing these, minus the “wall coverings” such as paint or wall paper, which would still be the unit owner’s responsibility.

Another area the Association may bear some responsibility, is whether they inspected the wall crevices to see if any mold is growing due to the water loss.  Since the insides of the walls or ceilings would be considered common elements, if the association failed to make sure that these areas are mold free, and mold growth was exacerbated inside your unit as a result, the association may bear some responsibility.

As you can see, this simple situation can actually turn into a complex legal issue, where the unit owner above and the condominium association may disclaim any liability.   This is the reason it is so important for a South Florida condominium owner to have homeowners insurance to cover losses that may arise.  A homeowners insurance claim can always be made against your own insurance, with the assistance of a homeowners insurance property damage lawyer.

For additional analysis on condo issues and Florida condo insurance claims, see my previous post.

Florida Condominium Owner Insurance Claims – I Have Water Damage In My Condo Unit, What Does the Association’s Insurance Cover?

As South Florida Condominium owners know, many things can go wrong to cause a water loss in their condominium unit.  Whether you live in Miramar, Deerfield Beach, Coconut Creek, Doral, Lauderhill, Margate, Miami Lakes, Pembroke Pines or another area within Miami, Fort Lauderdale or Palm Beach, many units are over thirty years old and so it is not uncommon to experience pipe leaks, burst pipes, broken pipes, broken water heaters, failed toilet seals or even roof and window leaks.  When these types of water intrusions occur, one may seek out a condominium water damage insurance claim lawyer to get some guidance on how to proceed in resolving this property damage loss and perhaps even assert condo water damage claims.

This attorney will probably inquire as to whether the water loss was from a common element (ie., a pipe behind the drywall, a roof leak and/or cracks in the exterior stucco/wall, parts of a unit that are typically considered common elements under one’s Declaration of Condominium), or an item that is the responsibility of the unit owner, such as a toilet that fails or a water heater that explodes.  Usually, a Declaration of Condominium will state that items within a unit that touch air are the responsibility of the unit owner.

Once it is determined where the water intrusion originated from, the next big question is typically whether the water loss was the result of the negligence of the condominium association in failing to maintain the common elements.  If the water damage is determined to be caused by this (ie., water penetrated an exterior wall or its stucco, a roof leak, a common air conditioning stack fails, a common sewage pipe backs up or fails, a common pipe or plumbing fixture fails, etc.), the association could be responsible for the water damage and resulting mold that may occur.  On the other hand, many times, there are water intrusion losses caused by sudden and unforeseeable events such as Hurricanes or other wind storms, tornado’s, or possibly even a neighbors condo (or condo unit above yours) wherein a relatively new water heater simply explodes due to a faulty seal.  These types of losses are considered casualties.  When a casualty occurs, both the condominium and unit owner’s insurance could come into play.

As for a condominium association’s insurance requirements, Florida Statute §718.111(11)(f), states that a property insurance policy issued or renewed on or after January 1, 2009, for the purpose of protecting the condominium must provide primary coverage for:

1. All portions of the condominium property as originally installed or replacement of like kind and quality, in accordance with the original plans and specifications.

2. All alterations or additions made to the condominium property or association property pursuant to s. 718.113(2).

3. The coverage must exclude all personal property within the unit or limited common elements, and floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments, including curtains, drapes, blinds, hardware, and similar window treatment components, or replacements of any of the foregoing which are located within the boundaries of the unit and serve only such unit. Such property and any insurance thereupon is the responsibility of the unit owner.

Pursuant to this statute, because drywall is not specifically excluded, that would be the responsibility of the association under its insurance policy, minus the “wall coverings” such as paint or wall paper, which would still be the unit owner’s responsibility.

This is the reason it is so important for a condo owner to have homeowners insurance to cover losses caused by a casualty, just in case damaged portions of the unit are not covered by an association’s insurance policy.

For additional analysis of condo water damage claims, see my other post.

Florida Homeowners Insurance Claims – HO-2 v. HO-3 v. HO-4 v. HO-6 v. HO-8, Insurance Policies Oh My

When living in South Florida, it is more important than ever for a homeowner or renter/tenant to secure insurance for the many different hazards that may affect one’s property.  After all, we are especially susceptible to tropical storms and Hurricanes in the Miami, Fort Lauderdale and Palm Beach areas.  Yet, even though we have not experienced a Hurricane in quite some time, having homeowners or renters  insurance can provide peace of mind given the many other perils which may occur and that can destroy one’s property, including fires, electrical surges, floods, sinkholes, tornadoes, lightning strikes, vandalism, theft, and/or sudden water losses from a burst pipe, faulty/broken plumbing or a failed seal in a water heater.

Whether your a single family homeowner that may have an HO-2, HO-3 (also know as an “All Risks” policy) or HO-8 policy, a condo owner that has an HO-6 policy, or a tenant/renter that has a an HO-4 policy, if you sustain a property loss (structure and/or personal property) and require a Miami, Florida, Hurricane or property damage insurance claim lawyer, there are legal issues an insurance company may raise depending on the type of policy you have,  and that you scratch your head and say, what is that.  Some of these issues may include the following:

    1. Actual Cash Value:  if a policy provides for actual cash value as opposed to replacement cost, this would be the amount of money it would  cost to purchase a similar item in like condition and quality in today’s market place, ie, the market value of the property that takes into consideration depreciation.  An example of depreciation is say carpet or other types of flooring that has a useful life of say 10 years but at the time of loss was 5 years old, the market value of the carpet would be less than the replacement cost, as the market value would take into consideration this wear and tear over the years and reduce the value of the property.
    2. Replacement Cost: if a policy provides for the replacement cost of damaged property, this would be the amount of money it would take to purchase the same type of property of like kind and quality in today’s market place.
    3. Alternative Living Expenses: also known as ALE, alternative living expenses may include the reasonable expenses incurred to relocate for the time it takes to repair an uninhabitable property, such as staying in a hotel for days or weeks,  excess food expenses above what one normally would spend, transportation expenses in case you need to travel greater distances than normal, and storage expenses, just to name a few.  It is important to save your receipts in order to prove that these expenses were actually incurred.
    4. Loss of Use: an interchangeable term with alternative living expenses (ALE) on a Miami, Florida, homeowners insurance policy, loss of use damages are paid when a homeowner incurs excess expenses during the time it takes to repair an uninhabitable property.
    5. Deductible: the amount of money the policy holder must pay out of pocket before the insurance company will start paying from your insurance coverage.  For instance, a Miami, Florida, homeowner may have a $5,000 deductible on a windstorm policy, and when a Hurricane damage insurance claim is made, if the property damage claim is adjusted at $15,000, the insurance company will pay you a net of $10,000, ie., minus the $5,000 deductible.
    6. Exclusion: within a homeowner’s policy, there will be certain provisions called exclusions that an insurance company may cite to in order to deny a claim.  Common exclusions cited in a homeowner’s insurance policy could include mold (given that is it something that grows over time), flood (you would need to purchase a separate flood policy), landslides/sinkholes (ie, earth movement), neglect/wear and tear (policies cover water damage caused by sudden and unexpected losses, such as a burst pipe or a water heater that explodes), a sewer backup, loss caused by intentional destruction, and ordinance/law (such as construction to bring a house up to code), just to name a few.  However, insurance companies typically offer a homeowner the opportunity to purchase coverage that normally would be excluded.

As you can see, whether you are a homeowner/tenant in Coral Springs, Cooper City, Hallandale, Boca Raton, Homestead, Key Biscayne, Weston, Pompano Beach, Tamarac, Wilton Manners, Hialeah or another area within Miami, Fort Lauderdale or Palm Beach, there is a lot to think about when it comes to your insurance policy and potential property damage disputes and claims that may occur.

Florida Condo Owner Pipe Plumbing Leak Claims – It’s the Rainy Season Down in Miami, Fort Lauderdale and Palm Beach: Be Prepared

It is currently the rainy season down here in South Florida, and nothing is worse than having one of those downpours cause water damage to your house, apartment or condominium.  Whether it is a leak in your roof, flooding due to a flash flood, or even a gutter or burst pipe/plumbing that overflows with water, it is now more important than ever to have flood and/or homeowners insurance to protect you from water intrusions and the resultant water damage loss.  Many times, not only is the structure damaged, but furniture, electronics and other items are frequently ruined.

As such, when one has to bring Florida Condo Owner Pipe Plumbing Leak Claims, it is important to know the types of property damage insurance coverage available, whether flood or homeowners, so that you are protected in a time of crisis.  Reason being, mold is commonly caused by water intrusions, yet one of the most common exclusions that insurance companies cite to in denying a homeowner’s insurance claim is the mold exclusion.  A Miami, Florida, property damage and homeowners insurance claim attorney can help one navigate the muddy waters of the various types of policies, so that the losses and claims that eventually occur can be dealt with.  Whether you live in Miramar, Deerfield Beach, Coconut Creek, Doral, Lauderhill, Margate, Miami Lakes, Pembroke Pines or another area throughout Miami, Fort Lauderdale or Palm Beach, it is certainly better to be informed and prepared than to suffer a non-covered property loss that causes heartache and headaches.