A recent water-main break and sinkholes at a Penfield condominium complex forced residents from their homes and raised a difficult question: how would insurance respond? According to 13WHAM, the September 14 incident created at least two sinkholes, undermined the roadway at the Forrest Hill condo complex, and left 18 condos temporarily unfit for occupancy.
Here is the important part for condo owners: a home being uninhabitable does not automatically mean every related expense is covered. Coverage depends on the cause of loss, the wording of your individual condo policy, the association’s master policy, and any endorsements that were added before the event.
Why additional living expense coverage may not automatically apply
Additional living expense coverage can help pay reasonable extra costs—such as a hotel or temporary rental—when a covered loss makes your home uninhabitable. The key phrase is covered loss. If the policy excludes the event that caused the damage, additional living expense coverage may not be triggered.
Sinkhole and earth-movement exclusions
Many standard homeowners and condo policies exclude sinkhole collapse, earth movement, or similar ground movement. That can mean the base policy may not cover damage to the interior of the unit when the direct cause is a sinkhole. Policy language varies, so the exclusions and definitions in the actual contract matter.
Your condo policy and the association master policy do different jobs
A condo owner’s HO-6 policy generally covers the unit owner’s personal property, certain interior improvements, liability, and other listed protections. The association’s master policy generally applies to common property and portions of the building defined by the association documents and policy.
If a sinkhole damages a driveway, parking lot, or another common area, the association may face a major repair expense. The association could potentially assess unit owners for part of that cost. Your loss-assessment coverage may help in some situations, but it commonly still requires the assessment to result from a cause covered by your policy.
Ask whether optional endorsements are available
Some insurance carriers may offer sinkhole or earthquake endorsements for an additional premium. Availability, limits, deductibles, and covered property differ by company. The best time to ask about those options is before a loss occurs.
A quick coverage-review checklist for condo owners
- What does my policy say about sinkholes and earth movement?
- When would my additional living expense coverage apply?
- How much loss-assessment coverage do I have, and what causes of loss qualify?
- Does my carrier offer sinkhole or earthquake endorsements?
- What does my condo association’s master policy cover?
Know your coverage before you need it
Insurance is designed to respond to covered losses, not every event that can make a property unsafe or difficult to use. A short policy review now can help you understand where coverage ends and whether additional options are worth considering.
If you own a condo in Penfield, Rochester, or anywhere in New York and would like help reviewing your coverage, contact VanScoter Insurance Agency at (585) 663-2004.
This article is for general educational purposes only. Actual coverage depends on the specific policy, endorsements, carrier, association documents, and facts of the loss. Please consult a licensed insurance professional about your situation.
