Who pays: HOA or me?
January 18, 2009 4:56 PM Subscribe
Who gets to pay: the HOA or me? Of course, there's some weirdness.
Recently, the double whammy of cold weather and a dead furnace froze a very critical pipe in our townhouse. After the city decided it was our fault (what with the furnace that died), we contacted a plumber to restore our water. We paid about $500 for his service.
We are part of a very small HOA- literally consisting of ourselves and one other unit. By virtue of being here first, I am the "president" of the HOA, which has thus far meant that I collect the monthly fees and pay the insurance once a year. I am fairly clueless beyond those duties so I want to be as above board as I can. I checked the HOA bylaws and it dictates that certain repairs to common areas are covered by the HOA but it does not define what is a "common area". The property is, of course, insured for losses through the HOA. We are in Massachusetts and the water facilities for our unit are only accessible through our house.
Who in this instance would pay for the repair? I assume I, the homeowner, would pay but it sure would be nice if the HOA ponied up. If I am responsible for the cost, can I still file with the HOA property insurance for reimbursement?
Recently, the double whammy of cold weather and a dead furnace froze a very critical pipe in our townhouse. After the city decided it was our fault (what with the furnace that died), we contacted a plumber to restore our water. We paid about $500 for his service.
We are part of a very small HOA- literally consisting of ourselves and one other unit. By virtue of being here first, I am the "president" of the HOA, which has thus far meant that I collect the monthly fees and pay the insurance once a year. I am fairly clueless beyond those duties so I want to be as above board as I can. I checked the HOA bylaws and it dictates that certain repairs to common areas are covered by the HOA but it does not define what is a "common area". The property is, of course, insured for losses through the HOA. We are in Massachusetts and the water facilities for our unit are only accessible through our house.
Who in this instance would pay for the repair? I assume I, the homeowner, would pay but it sure would be nice if the HOA ponied up. If I am responsible for the cost, can I still file with the HOA property insurance for reimbursement?
I'm not sure I understand the implications of the city deciding it was your fault. Is your furnace heating a public pipe?
posted by Pants! at 5:46 PM on January 18, 2009
posted by Pants! at 5:46 PM on January 18, 2009
If the broken pipe is not in an area of the townhouse that is accessible by the residents of the other unit, it is not a "common area". I have no idea why you would think the HOA should cover repairs to something that is in your private residence.
posted by jferg at 6:45 PM on January 18, 2009
posted by jferg at 6:45 PM on January 18, 2009
Best answer: Who in this instance would pay for the repair? I assume I, the homeowner, would pay but it sure would be nice if the HOA ponied up.
Considering that you're half of the HOA, and so would be paying $250 of the $500 cost if the HOA would pay, the issue really involves a net (difference) of $250. Is it really worth aggravating the other half of the HOA about this, even if (and on this I, like others, are doubtful) that the HOA should pay?
If I am responsible for the cost, can I still file with the HOA property insurance for reimbursement?
No. The HOA can ask the insurance company only for payments when it incurred costs for which it was responsible. Besides which (and this is true for your insurance as well, since you should have separate insurance), (1) there is almost certainly a deductible which will reduce or totally eliminate what the insurance company will actually pay (if there isn't, you're paying too much for insurance), and (2) the HOA and/or you do not want to, repeat, do not want to file low dollar claims, particularly for water damage. This is the type of claim - particularly if something similar happens again - that will lead to your insurance company terminating your insurance (because, for example, they worry about mold problem, and about your competency in general). And because insurance companies report claims into a central database, you'll then quite possibly have problems getting insurance - or at least reasonably-priced insurance - from another company.
posted by WestCoaster at 7:06 PM on January 18, 2009
Considering that you're half of the HOA, and so would be paying $250 of the $500 cost if the HOA would pay, the issue really involves a net (difference) of $250. Is it really worth aggravating the other half of the HOA about this, even if (and on this I, like others, are doubtful) that the HOA should pay?
If I am responsible for the cost, can I still file with the HOA property insurance for reimbursement?
No. The HOA can ask the insurance company only for payments when it incurred costs for which it was responsible. Besides which (and this is true for your insurance as well, since you should have separate insurance), (1) there is almost certainly a deductible which will reduce or totally eliminate what the insurance company will actually pay (if there isn't, you're paying too much for insurance), and (2) the HOA and/or you do not want to, repeat, do not want to file low dollar claims, particularly for water damage. This is the type of claim - particularly if something similar happens again - that will lead to your insurance company terminating your insurance (because, for example, they worry about mold problem, and about your competency in general). And because insurance companies report claims into a central database, you'll then quite possibly have problems getting insurance - or at least reasonably-priced insurance - from another company.
posted by WestCoaster at 7:06 PM on January 18, 2009
Best answer: Here is a common sense approach. If the furnace serves both units, it is a common area. If not, each homeowner is responsible for his own.
This may not be legally accurate in your state.
posted by megatherium at 7:52 PM on January 18, 2009
This may not be legally accurate in your state.
posted by megatherium at 7:52 PM on January 18, 2009
Response by poster: Thanks, guys! I appreciate the help.
posted by cheap paper at 8:45 PM on January 18, 2009
posted by cheap paper at 8:45 PM on January 18, 2009
This thread is closed to new comments.
My completely uninformed and unprofessional option: if the damage occurred in your townhouse or it's internal infrastructure, especially due to your own negligence in not maintaining a safe temperature for the plumbing, then you as the homeowner would be responsible for the damage and any reparations.
Your private home is not considered common area, so should not be covered by the HOA.
Contact a lawyer now. We're not going to tell you anything that would stick in court.
posted by phredgreen at 5:16 PM on January 18, 2009