Quote:
Originally Posted by DownInFlames
For example, a water leak causes $40,000 damage and the deductible is $25,000. We could make a claim and get the owner to pay $25,000, or we pay $40,000 to fix the damage and the owner owes nothing.
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Whoa, hang on. That $40,000 has to come from somewhere, and Boards rarely have $40 large sitting around. As an item of repairs and maintenance, leaks aren't typically items covered by the Reserve fund.
That leaves a special assessment whereby all units of the building would have to proportionately chip in to cover the $40K. Which generally leaves the entire populace ripping mad.
That leaves the ability to collect the $40K directly from the unit that charged it. I'm not a lawyer, but I believe it comes down to your bylaws, and whether it states the offending unit is responsible for 100% of the incident in the event a claim is not filed.
I say that, as the guilty unitholder may have an argument that 'insurance exists for a reason, use it" to only owe the $25K and not $40. Again, it all comes down to the almighty bylaws.