A new, neighboring building is being constructed, or an existing adjacent building is undergoing renovations, which poses the risk of causing, or actually causes, damage to your condominium association during the process. Here is an overview of potential damages, remedies, and solutions regarding neighboring construction issues.
Your aggrieved condominium association damaged by a nearby or neighboring construction project may bring claims against the neighboring property’s owner (e.g. a developer, an existing neighboring condominium association, or a private owner), and may also have potential claims against the builder/general contractor, design professionals, and subcontractor(s) performing the scope of work responsible for the damage.
Upon notice or commencement of a neighboring project, your condominium association should attempt to potentially prepare for and protect itself against potential damage, to the extent possible.
Further, a condominium association may also submit a claim with its own insurance carrier for potential construction-related damage caused by the neighboring project. Your condominium association should notify its insurance company once any such potential damage starts to appear and comply with policy terms. If the carrier denies coverage which is owed under an existing policy, the association may potentially have claims against its own insurer for breach of contract.
The above is not exhaustive as to the potential claims and remedies available to associations in the event nearby construction causes damage to association property. It is important for associations to consult with experienced condominium and construction attorneys to fully explore all potential claims, remedies, and means of recovery, as well as to discuss potential alternative mitigation efforts. To learn more, please contact Haber Law for more information or to schedule a consultation regarding such neighboring construction issues.
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