would be responsible for any and all damage to the property. Even though it’s right there in black and white, this may not be the case. This section is often the culprit for increasing confusion and conflict because of the subtlety in the wording. Anyone involved with associations in any capacity needs to understand that this section is meant to outline the portions of the property that the association agrees to maintain and repair and replace as needed over time.
The “Insurance” section explains the responsibilities of the association and the unit owner in the event of a loss. For example, fire is a cause of loss. A fire does not occur over time. It is the result of a sudden or accidental occurrence. In the case of a fire, the unit owner might be responsible for the repair or replacement of property the association had previously stated would be maintained, repaired, or replaced. A townhome owner for instance, might enjoy the benefit of the association removing old rusty gutters and replacing them with shiny new ones but if these same gutters were damaged by fire or blown off in a windstorm, it would be the townhome owner’s obligation to repair or replace them. A condominium owner in this example can expect the gutters to be replaced in both cases. However, say a condominium owner has a broken lock on their front door (Limited Common Element), they would need to call a locksmith to make the repair. However, if the fire department kicked the door in to put out a fire, the association’s insurance would pay for its replacement.
The key to understanding these seemingly gray areas is noting the difference between property which wears out over time and serves only one unit (“Maintenance, Repair, and Replacement”) versus sudden and accidental catastrophes (“Insurance”). If there is doubt or confusion about what’s in black or white, or especially what may be gray, it’s time to consult the Association’s insurance professional and Association counsel.
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www.hillcrestmgmt.com 40 | COMMON INTEREST® A Publication of CAI-Illinois Chapter
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