Wednesday, November 7, 2012
By Richard Thompson - Realty Times

In common wall housing, unit flooding and damage can happen for a variety of reasons including roof leaks, water supply pipes leak, toilet/bathtub overflows and washer hose ruptures. Who is responsible for water damage, the HOA or unit owner?


First, determine the actual cause of the loss and whether any of the involved parties were negligent in their maintenance responsibilities (like, left the water running). Then, review the governing documents to determine what guidance there may be for maintenance and repairs. Pay special attention to the definitions of: unit, common element, limited common element, maintenance responsibilities of owners and the homeowner association, insurance responsibilities of owners and the homeowner association and enforcement procedures. These provisions often differ from HOA to HOA.

Generally, owners are responsible for maintaining anything they own or that lies within the unit boundaries, and the HOA is responsible for maintaining the common elements and limited common elements. However, limited common elements are usually allocated to the exclusive use of a unit owner and the unit owner may have the maintenance responsibility for repairs. An important principle to keep in mind is that the obligation to maintain a particular component does not necessarily mean that there is an obligation to repair damage to another unit if that component fails.

Say that the water heater in Unit A fails and damages Unit B. According to most governing documents, Unit A bears the expense for repairing the water heater and any damage to Unit A. There is no obligation for Unit A to pay for damage to Unit B unless the owner of Unit A was negligent in some way. For example, if Unit A owner knew the water heater was leaking slowly and steadily and let it continue to leak for long enough to damage Unit B, Unit A owner would be negligent. On the other hand, if the water heater tank ruptured spontaneously and flooded Unit B, it would not be negligence.

Barring negligence, each unit owner repairs his own unit. The same principle applies if there is a leaking roof which is maintained by the HOA. Roofs leak from time to time. If a unit owner does not inform the HOA when a leak occurs, how does the HOA know to fix it? It's like the old saying, "If a dog barks in the woods and there is no one there to hear him, is he still a bad dog?"

Now, if the HOA is informed of the leak, does nothing to stop it and the unit is damaged, that is negligence and the HOA should pay for the unit repairs. Some would argue that since the HOA's insurance is paid for by the members, unit damage should be paid for by the HOA in every case. Unfortunately, any HOA that does not carefully control the type and frequency of claims made will find itself without insurance or paying enormous premiums.

This is why it is critically important for the board to establish a clear policy on maintenance and insurance responsibility which will safeguard the HOA's insurability. This policy should identify all major building components and assign responsibility either to Owner or HOA that is consistent with the governing documents. Unit insurance agents should be provided this information so they know what their insured is responsible for. This is all about spreading risk around and saving the HOA insurance policy for the Big Claims as much as possible.

There is a sample Areas of Maintenance & Insurance Responsibilities policy available to Gold Subscribers of For more innovative homeowner association management strategies, see

Published: November 7, 2012

Comments: 4
November 10, 2013 10:15 AM
Krakusa says:
I'd say you pretty much coevred it yourself there. However if you did get a loan and up and left it to the bank it might not be as easy as you state it and there might be repercussions and bad credit etc. associated with it. I know if you take the loan then yes you'll pay more in the long run with interested and insurance, possible inspections and other requirements but you'll be more informed of the property plus if you have held onto your cash when you're in troubled times you can still make a payment. Financially speaking if the property is in good shape and the person you buy it from is trustworthy and you're 100% sure it's fine than the cash option is definitely a smarter choice in the long run. You could always take out a loan against your property if needed.
January 25, 2013 4:52 PM
Dylan says:
Here is the legal problem you are hainvg. They are trying to fix the roof as required as the by-laws will state. If the leak has caused interior damage contact your homeowners insurance co. Let them go after the home owner association. Meaning you and all of your condo owners. Go to a board meeting and let them know that the repairs are not working and find out what is the next step.
January 25, 2013 4:17 AM
Muhammad says:
I would have to know what you mean by censure and also the facts and ccacumstrnies leading to the Board President's actions to comment (don't send them, legal advice would be required and a consultation would be needed). A Board President is often given fairly broad powers by the Board and the Bylaws and to comment on a set of facts that may have more to them than meets the eye would be irresponsible.
January 24, 2013 7:25 PM
Paris says:
Comfortably, the weblog suibmt is actually the sweetest on this helpful issue. I concur with the conclusions and will eagerly start looking forward in your incoming updates. Saying many thanks is not going to just be plenty of, for that superb lucidity in your writing. I will straight away grab your rss feed to stay abreast of any updates. Strong get the job done and a great deal victory in your own home business endeavors! Sincerely, Jackson..
Email Address

Type the characters you see in the picture above.
< Back
Broward County Schools, Palm Beach County Schools, Miami Dade County Schools
What's My Home Worth
The Mortgage Center
Receive New Listing Alert
Blair Damson Testimonials, Blair Damson Reviews
Blair Damson Awards, Coldwell Banker Recognitions
Additional Resources
Palm Beach Information, Broward Information, Miami-Dade Information
Client Login
Real Estate News
Bookmark this Site
Visit our Mobile Site