What can I do if the owners' association's insurer refuses to pay?

Question

José Manuel Alburquerque · Accepted Answer

It depends on who is claiming. If the damage is to the common parts, the owners' association claims through the chair and the managing agent, like any other insured party. If the damage is to your home and was caused by a common part, you can claim directly against the owners' association's insurer without waiting for the general meeting. If it does not pay, you can sue both the insurer and the owners' association. In either case it is advisable to ask for the refusal in writing and to check the clause on which it is based. If the owners' association claims The managing agent asks the insurer to explain in writing why it is not paying and which clause it relies on. If it is a clause limiting the rights of the insured, it is only valid if it is highlighted and separately signed. A written complaint is made to the insurer's customer service department, which has one month to reply. If it does not reply or rejects the complaint, the matter can be taken to the complaints service of the “Dirección General de Seguros y Fondos de Pensiones”, Spain's insurance regulator, which issues its report within a maximum of 90 days. That report is not binding on the insurer and does not assess the damage or anything requiring experts, so it is of little use when the cause of the fault or its cost is in dispute. To bring a claim in court, the prudent course is for the general meeting to resolve to do so and to authorise the chair. The matter must be on the agenda and in Catalonia a simple majority is enough. In addition, the law requires the owners' association to attempt negotiation first, so its claim to the insurer should be a genuine invitation to negotiate. The owners' association has two years from the insured event to claim against its insurer. If an affected owner claims You can go directly to the owners' association's insurer, because it is the insurer of whoever is liable for the damage. Many owners' association policies also state that the owners are third parties for these purposes. If it turns out that the fault was in a neighbour's private plumbing, that neighbour is liable and you will have to claim against the neighbour or the neighbour's insurer. If the policy also insures the walls, ceilings and floors of the homes, you can claim as an insured party as well. Before you sue, the law requires you to attempt negotiation. The prudent course is for your written claim to be a genuine invitation to negotiate rather than a mere demand for payment. To be on the safe side, make your claim in writing before one year has passed since the damage. If the incident occurred in Catalonia, the time limit is normally three years. A written claim interrupts the time limit. A word of advice Ask the managing agent for a copy of the owners' association's policy. Look in particular at how it defines the common parts and whether it treats the owners as third parties.