Who gets the check for a roofing claim when the roof is a common element of a CIC?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 27, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Heidelberg, MN

Asked on 07/27/2012

Who gets the check for a roofing claim when the roof is a common element of a CIC? The builder sold all but one townhome which was still insured under the contractor's policy. The other eleven townhomes were insured by the HOA. All 12 roofs were common elements of the HOA. A severe hail storm totaled all the roofs. The HOA replaced 11 roofs but the contractor pocketed the money and did not replace the roof of the unit that had not yet been sold. Would the builder's insurance company issue the check solely to the builder even though the roof was a common property of the HOA? In other words, wouldn't the HOA be the first secured party in this case?

Answer given on August 13, 2012

If the unsold unit of the HOA was insured by the contractor’s insurance policy and not insured by the HOA then the insurance company for the contractor would make the payment to the named insured of their policy, which is apparently the contractor. If the contractor chose not to repair or replace the roof and simply pocketed the money, it could pose a problem for the future purchaser of the property. In addition, the HOA could refuse to include the unit under their policy if the roof is damaged. The HOA may want to contact the contractor and advise they will exclude the unit that is unsold until the roof is repaired or replaced. This information will have to be provided to the buyer of the property and may make the unit unable to be sold. If you are a representative of the HOA you should contact the contractor and try to resolve this issue before the unit is sold.


IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption