Another Reason It is Important to Review All Bylaws Before Purchasing a Condominium (agent, mortgage)

[LynnHarris]

I always recommend to anyone purchasing a condominium to thoroughly read all the community rules and regulations first.


Condo Owners Forced Out By Fire

“...residents of a condo building that caught on fire a few weeks ago will be out of their units for several months before the fire-damaged generator can be repaired. Some of the residents indicated that they did not have insurance coverage to cover the costs of alternate temporary accommodation. This was exacerbated by the fact that they were still required to pay their monthly common fees, even though they did not have access to their units. We expect that in many cases the residents didn’t ever address their minds to the possibility of this type of situation happening. Without fully understanding their obligations as an owner, they assumed that the obligation to pay common expenses would fall into abeyance until their units were habitable.

In order to avoid finding the residents of your condo in this unfortunate predicament, we suggest that boards and management communicate with owners so that they understand what proactive steps they can take. For many owners, especially those new to condominium home ownership, their failure to obtain adequate insurance may have resulted from a lack of awareness of their obligations and how to protect themselves...”

http://www.condoreporter.com/insurance/a-recent-article-in-the-1/

[MikePRU]

You know what happens when you assume . . .

Why would anyone think that their condo fees would just disappear if their building caught fire? The management company still needs to be paid, the master insurance still needs to be paid, etc, etc, etc. You can't stop paying your mortgage either.

Maybe I just have a little too much faith in people, but I really, really hope your helpful tip is not considered "news" to anyone who reads it.

As far as the insurance providing temporary housing . . . that's not going to be in the condo docs. I always encourage my condo buying clients to call the insurance agent who carries the master policy to see what the coverages are. It's important to understand this so that when you take out your own condo owner's policy you have appropriate coverages. Not every master policy covers the same way.

[jghorton]

This sounds more like an insurance matter than a condo bylaw matter (?). The fact that condo owners are required to pay their HOA fees, has nothing to do with whether they are actually using their condo or not. Many, if not most, condo HOA's require that owners show proof of insurance, but, some do not. Still, just like with a home (unless a bank is involved), insurance is the owner's responsibility.

Suppose, for example, one had some fire damage in their home and needed to move out while the damage was being repaired. They would still be obligated to pay their utilities, mortgage, taxes, insurance and other homeowner costs.... such as HOA fees (if they had an HOA).

[accufitgolf]

Would you buy any homeowners insurance without a stipulation/section concerning living expense while home is rebuilt?

I do not see it as a condo issue, but an insurance issue.