Mold – it’s an ugly four-letter word in more ways than one. Nobody wants to think about the fact that this fungus can be found anywhere where water leaks or drainage problems are present. Mold can cause serious damage to a condominium, like ruining drywall, and is believed to trigger numerous health problems in susceptible persons.
But when your home is contaminated by mold, and you just want it to go away, who pays for the damage and the cleanup? Is it the responsibilityof the homeowner? Is it the condo association’s responsibility? Is it the next door neighbors’ responsibility if the water came from their unit and damaged yours? The answer to all of these questions is… it depends.
The condo association’s master policy, as well as the association documents, spell out what parts of the complex the condo association will insure and what parts are the unit owner’s responsibility.The condominium association insurance typically covers the condo building, any common property such as hallways, lobbies and shared terraces, etc., as well as liability insurance for the association.
Unit owners are typically responsible for whatever part of their unit the master policy doesn’t cover, including damages, as well as any additions or alterations they’ve made to their homes.
“How the unit owner’s insurance and the condominium association’s insurance interact is dependent upon the language in the condo documents, specifically the “unit boundaries” that define the unit owner’s responsibility for damaged property as opposed to the association’s responsibility,” says GeorgeSalter of Insurance Reconstruction Services in Smithfield, Rhode Island.