Quote:
Originally Posted by bizaro86
Let me tell you a story of something that happened to me in the past.
I buy condo, condo corp insurance policy has $10k deductible. Condo corp changes deductible to $30k without mentioning it to me or sending out a new certificate. I have insurance with a $20k limit.
A few weeks later, my tenants leave their window open winter, because they're idiots. Pipe bursts, floods my unit and 3 units below. theiDamage is over the condo corp deductible,r insurance pays everything except the $30k deductible. My insurance pays the $20k limit. My tenants leave town in the middle of the night, never to be heard from again. Now, I have a copy of the tenants insurance policy I insist my tenants buy, but the adjuster informs me that without serving the tenants they can't collect from the policy as the insurer has declined to just pay. I pay the $10k difference, plus my deductible ($1000).
4 years later the insurance company finds the tenants somehow, serves them, and settles with their insurance company. So I got the $10k back eventually, but I had mentally written it off by then, and had actually sold the condo.
I do not wish to have this happen again. My strong preference is to have my limit completely cover the condo corp's deductible.
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The 20k limit is for damages to your unit though not the units below you. That is what your liability portion should be covering which is normally 1/2 million. I am not sure why you had to pay out of pocket anything other then deductibles (for your policy) as I know nothing about the actual claims.
In a typical situation like yours this is how it should have happened:
Condo corp pays - All damages to get repaired. 30k deductible out of condo corp.
Condo owner insurance pays - 30k deductible (pay back condo corp) out of liability insurance plus is subrogated for the rest of the damage since home owner is at fault (since tenant can't be found). your 20k content insurance would cover damages to any flooring/things condo owner owns.
Condo tenant insurance - Would be subrogated to recoup any funds if possible in this situation since it would be under their liability portion again normally 1mil in coverage.
Unless I am missing some key piece of information and you are only purchasing 20k of liability insurance which would be very strange.