malicious mischief by tenant, water damages multiple condo units

[Leighton Adams]

A tenant caused water damage to my mid-level condo. The water went down to the lower units and caused water damage there. My insurance is covering her damages to my unit under a malicious mischief claim. The damage was such that the fire department said that unit was unsafe to occupy. They posted a "do not occupy notice". I'm pursuing eviction. My tenant does have renter's insurance, including liability. The HOA agent said he will not file any claim on the master policy, and will bill me for all damages. The reasons given were as follows: 1) The problem originated from within my unit. 2) I'm responsible for tenant actions. My question is how to deal with the tenant water damage to the common areas and to the other owner's units? The HOA manager is making it sound like I have unlimited liability here. My guess is that the HOA will bill me for all tenant damages, and file a lien. I expect a barrage of invoices from the HOA. Can I use my own liability coverage for tenant-caused property damage bills? Can/should I file a master policy claim against the wishes of the HOA agent for common property damages? I've exchanged insurance information with the other owners.

[Michael Norris]

This will be a fight amongst the attorneys and insurance carriers. *I'm NOT an attorney and this is not legal advice* I am however an insurance agent and here is my gut how this will work out. If this was an intentional act by the tenant any insurance that person carried will not pay. The damage to your unit is a civil matter between you and the tenant i.e. not covered by your policy. The damage to the personal property of the tenants in the lower units should be covered by their renters insurance assuming they have it. The damage to the physical lower unit itself should be covered by their unit owner / landlord policy. Depending on the wording the master policy for the building probably covers "from the exterior walls to the studs" or something like that and unit owners policy covers "from the studs in". The master policy will most likely not cover any damage to the interior of any units themselves which is why they won't file on the master policy.

Good luck. I always recommend to my landlords to put in the lease a clause saying something like the tenant is required to carry and show proof of renters insurance and that their failure to get renters insurance nor your failure to inspect for renters insurance relieves them of the duty to carry it. Ask your attorney to type that one up.

I'm also seeing a lot more management companies demand proof of renters insurance from the tenants than ever before just because of situations like this.