Need help navigating HOA & Home Insurance Claim

[Evan Hosaka]

My partner and I purchased a condo in Las Vegas 3 bed 2.5 bath, 2 level with bedrooms upstairs and communal space downstairs. The property was built in 1973.

We had rented it to a family for a year and they didn't take care of it well at all, to say the least. My partner moved back into it with his girlfriend after the tenants moved out to do repairs and to occupy the property while we decide our next steps for the unit.

On a morning in October 2024, my partner noticed a significant amount of water pouring from the ceiling into the kitchen. The kitchen cabinets (downstairs), kitchen ceiling, and master bathroom (upstairs) were heavily affected along with the majority of the adjacent walls. 

We filed a claim with our Home Owners Insurance and was told that since it sounded like a pipe from an interior wall caused the damage, we would need to file a claim with our HOA's insurance. HOA wouldn't start a claim until they knew that the damage would exceed 10k in which our Home Owners insurance said it looked likely to be just around the 100k mark.

HOA would not do any sort of examination or send an adjuster from their insurance until an asbestos abatement was completed so our Home Owners insurance sent over 10k (HOA insurance deductible) to have us pay the asbestos company so the process could move forward.

Now that the asbestos has been cleared and the property is deemed safe for inspection, the HOA sent out a plumber and is saying that because it is confirmed that the damages was caused by a pipe that seems to have burst, it is not covered by HOA insurance because it is not listed in the CC&R's. The Home Owners Insurance also says that because it is a interior wall pipe that they do not cover it for condominiums as it should be covered by the HOA.

The HOA insurance plumber says that the way the pipes were built, it may have contributed to the burst because the work didn't seem to make sense. He also said that to fix that part of the pipe would likely cost about $450, which we would be happy to pay out of pocket if needed. The main problem is that the rest of the damages may be upward to 100k. We are currently waiting and hoping that the HOA insurance will reassess and maybe change their mind or that the Home Owners Insurance will help us out.

We are looking for anyone that may have dealt with a similar situation and how to navigate it or possibly looking for a referral for a real estate attorney that may have experience dealing with this sort of case. BP community, please advise.