More Questions - Miami Condo Collapse

Factual Questions
22

Yes, I meant property insurance. Here in Canada, banks don’t require “Mortgage Insurance” unless your equity is less than 20% (i.e. their exposure is more than 80%). MI just says they can’t lose if you stop payments, and they cannot sell the property for at least the amount of the mortgage.

“Renter/Tenant Insurance” is for when the building is not your problem, you just want the big screen TV, sofa, your clothes, etc. - the contents - insured against fire, water, vandalism, theft, etc.

Property insurance is for building and for owner/occupier, the contents (we hope, contents)

So that brings up the questions:

For a condo - what insurance does the condo owner themselves (usually, or ought to) have? Is the total value of the condo unit insured against total loss of value, or is it just for the contents, possible internal unit damage (like a kitchen fire). If I have a $1.4M condo, should I be insured for at least $1.4M? Or… Does the actual value of the building fall to the Association’s overall insurance?

(I.e. if the Association had failed to pay the insurance, what could the average condo owner expect out of their own insurance?)

Or is the lawsuit simply a way to ascribe “blame” so the condo occupant’s insurance company can seek reimbursement of any expenses from the Association’s insurance company?

(Much as, when you’re in a car accident, your insurance company will pay for your repairs but then go after the other - at fault - driver’s company?)

23

The unit owner is typically paying for contents and improvements insurance to cover exactly your scenario. It would not cover anything beyond the drywall.

If there is a hurricane that blew in the window and flooded the condo, the building master policy would cover the window and drywall damage, the condo owner policy would cover damaged carpets, hardwood floors, furniture, etc. as well as coverage to stay elsewhere while the damage was repaired.

24

In the UK, there is no legal requirement for the owner of an apartment building to insure it???

That said, mortgage providers will always want proof that the structure is adequately insured before they will lend on any apartment. Leaseholders and freeholders are advised to check that this is in place even if the mortgage is paid up.

26

I know this is an old thread but this seems a relevant update. This also seems remarkably fast for this kind of thing to be resolved in the courts.

27

They probably realised that that particular lawsuit was likely to end in tears if they contested it. Best cut the losses and reach a settlement asap.
The case against the next door building was pretty damming. Lots of very poor practice and failings. Might not have been the sole cause, but it wasn’t good.

It isn’t the only suit. As usual there are suits out against anyone who has insurance. The surviving residents are also suing their own residents association.

28

I completely agree with you but we have cases like the Exxon Valdez oil spill. We all know it was Exxon…we saw the gigantic ship with their name on it spewing oil. But, they managed to string out litigation for nearly 19 years.