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Condominiums and Mold and Liability

(Who would think those little spores could create such problems?)

A simple case of a washing machine overflowing, has snowballed, and every time I turn around, it's something else. One night in May, 2004, my washing machine overflowed.  I lived on the top floor of an 8-story condo development.  The maintenance guy came up with a shopvac, de-humidifier and fan and went to check other units.  He said any subsequent damage was minimal.  That's when the nightmare began.....

The maintenance guy failed to check a unit one floor down, and one over and the owners were not home.  Two days later, they came home to a small portion of wet carpeting outside their bathroom. They were upset with the management company for not checking their unit---they had two previous water incidents--one in their kitchen due to a slow leak from above...another when their bathroom flooded from above.  Mine was the latest water.   They told me my insurance company authorized Service Master to come into their unit (my insurance company denies this---what they told me is "they can't prove it."  Service Master discovered PRE-EXISTING MOLD in the bathroom, and proceeded to put holes in the walls, and tear up carpeting.  My insurance company, a month later denied any claims, citing the bylaws and subrogation clauses (still fighting insurance issues).  The unit owners refused to contact their insurance company because their attorney told them they'd be tainted by the mold issue. 

What was a simple water leak, turned into a mold remediation, and when the Association found out I was selling the unit---four months later they assessed me $9,000.  I discovered later that while the work was being done, they discovered a toilet connection leak to the main drain pipe.....which generated a random study of 2l units out of l70 in the complex.  Turns out water and mold were found in 76% of the units, and a study of all units was contracted for—and there could be a problem building-wide.  The units were converted to condos two years earlier----why the problem wasn't caught during the engineering study, is beyond me. 

I was stone-walled and phone calls not returned when I learned the simple leak with minimal damage was much more.  It seems outrageous to me, that I should be assessed the mold remediation where there was a pre-existing problem....particularly since I wasn't given proper notice of the assessment, and was given my appeal rights (which I filed a complaint for to the FCC, and the Federal Debt Collection Act)....in my opinion there is negligence on the part of the maintenance guy not checking the unit, and the Association/Management Company didn't even go into the moldy unit for a month.  They should have taken action immediately…they should have taken action on previous leaks.

The moral to the story is.......I'd rather live in a shack out in the country, then in a luxury condominium highrise.  They're only as good as the Association and Management Company that runs them.  Any water infiltration should be dealt with immediately.  It is especially important in a highrise because the areas between walls are dark, and prime places for mold, if the drywall becomes damp.  Slow leaks should be corrected---dripping water is prime for mold.  It's also important to know your insurance policy, the master policy, to make sure there's no gaps and who is responsible for what.  Mold increasingly, is not covered.   This occurred in Illinois, and I have since relocated out of state.  A change to the Condo Act makes unit owners responsible for damages for their "act."  My insurance company says the act has to be negligent...the Association attorney says no.  My attorney is good at spending the retainer money (and asking for more).  No one wants to be responsible for the mold.  Not all mold causes health problems, but some people are more susceptible to it (ie: asthma) and some molds are hazardous.  Who would think those little spores could cause such problems? 

Condophobic

Tips for buying a condo:

l)  Check the bylaws as far as insurance requirements.  Find out what the Association's deductible is, and talk to your insurance agent to make sure there are no gaps between the Master Policy and your policy. Review to see if there is mold coverage.  Make sure your agent explains to you the coverage, and ask for a copy of the Master Policy, and bring that to your agent to review.


2)  Review to see who covers what----Association responsible for common areas?  Betterments and improvements?  This area can be confusing, so make sure this is explained and you fully understand the terminology before you buy.


3)  If buying in Illinois, caveat emptor.  You can be charged back damage just for your "act." Negligence apparently doesn't have to be involved if my form Association's attorney is correct.  Say a water heater under warranty leaks, and you're on the 50th floor of a highrise---and you're not home.  You could be charged back the damages---or at least the deductible for the Master Policy.  Your insurance company may not pay if they were like mine, because there's not negligence involved. 


4) Check out the Association and the Management Company---a bad Association and Management Company will not protect your investment. 

5.  Ask questions as to how the Association/Management Company has handled water infiltration problems in the past, and ask if they have a maintenance plan in place.  Water problems should be dealt with immediately.  Ask who is responsible for mold in common areas and the individual units, and if they have had problems in the past.  If you're stonewalled, or not satisfied with the answers, you may want to keep searching. 



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