Condominium Association Insurance Claims
Filing an insurance claim for a condominium is uniquely complex because it involves both individual unit owner policies and the association’s Master Policy. The Berniard Law Firm specializes in untangling these shared responsibilities to ensure your community is fully restored after a loss.
Navigating Master Policy vs. HO-6 Claims
Determining whether damage belongs to the association or the unit owner often depends on your specific bylaws. Typically, associations are responsible for “common elements” like roofs and exterior structures, while owners handle “walls-in” damage. Our team helps boards and managers navigate these distinctions to prevent coverage gaps.
Critical 2025-2026 Louisiana Legal Changes
If your association is facing a denied or underpaid claim, you must be aware of the following legislative updates:
- Two-Year Prescription (2024 Reform): For property damage occurring after July 1, 2024, associations generally have two years to file a lawsuit, an increase from the previous one-year limit.
- Mandatory “Cure Period” Notice: For catastrophic losses (like hurricanes), associations must now provide a 60-day written “Cure Notice” to the insurer before they can file a bad-faith lawsuit for penalties.
- Modified Comparative Fault (2026): Starting January 1, 2026, Louisiana moves to a “51% bar” rule. If an association is found 51% or more at fault for property neglect contributing to the loss, they may be completely barred from recovery.
- Standardized Deadlines: Insurers now have 30 days to issue a payment or settlement offer after receiving “satisfactory proof of loss” for property damage
Protecting Your Future: Condominium Insurance Claims
Condominiums are wonderful investments: real estate is always a prime market in which to invest. Condominiums can be rented out, netting large profits periodically, or can serve for a personal living space. For example, students who are looking to carve a space in the competitive property-real estate market may desire to purchase condominiums, particularly since students may not wish to purchase a permanent home while studying.
Purchasing a condominium is a preparatory step for maintaining a larger, more permanent place of residence. However, fire, water, floods, hurricanes, and other natural disasters can wreak havoc on the otherwise worthwhile, stable investment that is the condominium. Purchasing condominiums often comes with intricate, detailed policies.
Condominiums have such detailed policies because condominiums are vast communities with a highly organized infrastructure; condominium residents expect such infrastructure for their investment. Those detailed policies often require experienced eyes, such as those found at the Berniard Law Firm.
Unfortunately, insurance companies rely on ambiguities and other vague language in the condominium policies to argue against coverage in certain situations. Insurance companies offer prospective customers ideas of what to insure. Generally, it is a variety of personal property: furniture, jewelry, clothes, and electronics. Still, underestimating insurance coverage is an unfortunate mistake that many condominium owners have to sadly experience in case of an unexpected event.
Other condominium owners, particularly first-time owners, may neglect purchasing insurance altogether. It is better to have a contingency plan in place, and actually more beneficial to debate over the parameters of insurance coverage than to find oneself stranded without insurance altogether.
When condominium owners, already stressed about what their situation navigate uncharted territory in litigation, it is advisable to document and record whatever they can to present to their attorneys. For instance, the condominium owner should describe the incident, location, damage, repairs, and whether the condominium owner has contacted a governmental entity, such as the police already.
Generally speaking, a condominium owner can choose a contractor to repair significant damage. Of course, if he or she is not able to find a reputable, reliable contractor, a claims representative can help find a contractor who is efficient. A claims representative may also help find temporary lodging if the condominium has become dangerous to live in; such a representative may also find other necessities, such as clothing and food.
However, the owner would receive an advance against the total settlement amount. The insurance deductible after condominium repairs would be paid directly to the hired contractor, or to a company, if one is involved, which did the repairs. When an owner has a mortgage on the condominium, the procedural mechanism of the insurance payment is slightly more complicated. The insurance company would pay the owner and then the mortgage lender—the mortgagee—up to the policy’s limit. If there is an advance payment, that payment would apply to a total payout.
Contact the Berniard Law Firm Condominium Attorneys
The Berniard Law Firm has significant experience in litigation. Condominium claims are especially complex and are worth substantial amounts—for the anxious condominium owner, it is best to hire a top-notch lawyer from the Berniard Law Firm.
Frequently Asked Questions (FAQs) for Condominium Associations
Under R.S. 22:1892, if an insurer arbitrarily fails to pay a claim within 30 days of proof of loss, they may be liable for penalties of 50% of the damages plus attorney fees.
This is typically determined by the association's governing documents. In some cases, the deductible is assessed to all unit owners, while in others, it may be the responsibility of the owners whose units were affected.
A condominium association's master policy generally covers the shared structure of the building and common areas, such as the roof, exterior walls, elevators, lobbies, and shared pools. Depending on the specific policy type—such as "Bare Walls-In" or "All-In"—it may also cover standard interior fixtures. Individual unit owners are typically responsible for their personal property and liability within their unit.
In Louisiana, the association's policy is primary for common elements and structural components. However, when a master policy has a high deductible—often ranging from $50,000 to $100,000 in hurricane-exposed coastal areas—the association may allocate that cost among unit owners. Unit owners can often use Loss Assessment Coverage from their individual HO-6 policies to help cover their portion of these shared deductible costs.
Under recent 2024 and 2025 legislative reforms, the prescriptive period (deadline) for filing a lawsuit for property damage in Louisiana is generally two years from the date of the loss. It is critical to review your specific association bylaws and policy documents immediately after a loss, as they may contain additional notice requirements.
Once the association provides satisfactory proof of loss, Louisiana insurers generally have 30 days to pay the claim. A satisfactory proof of loss is any evidence that sufficiently informs the insurer of the details of the claim. If an insurer fails to pay undisputed portions of a claim within this timeframe without a legitimate reason, they may be liable for bad faith damages and attorney fees.