Water damage & insurance

Liability for Water Damage

The failure of a water line in the wall does not automatically make an association liable for water damage inside a unit. There must be negligence by the association that caused the damage. In the absence of negligence, each party is responsible for repairing its own damage. That means the association repairs the common areas, and the owner repairs any damaged cabinetry, floor coverings, and personal property. Thus, it is important to carry proper insurance by the association and by members, and establish a deductible policy.

HOA's Duties. Unless the governing documents provide otherwise, the association is responsible for repairing, replacing, or maintaining the common area plumbing, and owners are responsible for maintaining their separate interests and any exclusive use common areas appurtenant to their separate interests. (Civ. Code § 4775(a))

Owner's Duties. Unless governing documents state otherwise, the plumbing lines and fixtures are normally the responsibility of unit  owners to maintain:

• kitchen sink, faucet, garbage disposal, drain, supply lines, and angle stops
• appliances such as a dishwasher and refrigerator
• bathroom sinks, faucets, drains, supply lines, and angle stops
• tubs and shower enclosures, faucets, valves, shower pans, drains & drain lines (until they connect to a main line)
• toilets, tank mechanisms, wax rings, supply lines, and angle stops
• water lines in the walls that serve only the unit
• drain lines in the walls that serve only the unit
• water heaters that serve a single unit

Written Policies. To minimize litigation, boards should develop written policies for such maintenance that are compatible with the association's governing documents. The policies should then be published to the membership and incorporated into the association's rules and regulations.

Right to Enter Units. Associations have the right to enter units to stop flooding and repair plumbing lines, roof leaks, window leaks, and other sources of leaks.

Water Damage Checklist

1. Before Water Damage Occurs

A. Clearly define maintenance responsibilities in your rules and adopt a water damage & mold policy.

B. Adopt rules regarding angle stop valves and supply lines that:

• require that all angle stops be heavy-duty brass or stainless steel with quarter-turn ball valves and Teflon seats
• require all supply lines to be high-grade braided stainless steel
• include standards for washing machine valves and hoses, dishwasher hoses, and ice-maker lines

C. Adopt a rule regarding payment of the insurance deductible.

D. Amend CC&Rs to:

• clearly assign maintenance responsibilities
• add mitigation provisions
• require owner insurance
• address insurance deductible
• clarify who and what is covered
• add exculpatory language for simple negligence

2. After Damage Occurs
 

• Immediately fix the leak to prevent further damage. Take pictures of the damage and its cause, both of which will be valuable in determining who pays for the damage.
• Call an emergency restoration company to clean up the water. Worry about liability issues later. Dry damaged areas within 24 to 48 hours to prevent mold. Take pictures.
• Make sure the company dries out the wall and ceiling cavities. Take pictures.
• Notify the association's insurance carrier.
• Call legal counsel (depending on the size of the leak).

ASSISTANCE: Associations needing legal assistance can contact us. To stay current with community association issues, subscribe to the Davis-Stirling Newsletter.