Can a Homeowners’ Association in Minnesota Charge a New Homeowner for a Pre-Purchase Insurance Deductible?

Question from Juice, Can a Homeowners’ Association in Minnesota Charge a New Homeowner for a Pre-Purchase Insurance Deductible?

Answer from AI:

In general, the responsibility for paying a Homeowners’ Association (HOA) insurance deductible in Minnesota can depend on several factors, including the specific terms of the HOA’s governing documents and the timing of the damage and insurance claim.

Understanding HOA Insurance Deductibles

HOA insurance typically covers common areas within the association, such as shared buildings, landscaping, and amenities. When damage occurs, the HOA may need to pay a deductible before the insurance coverage applies. This deductible can sometimes be substantial.

Timing of Damage and Insurance Claim

In your situation, the storm damage occurred and the insurance claim was made before you purchased your home. Generally, the responsibility for costs related to damage or claims that occurred before the purchase of a property would fall on the previous owner or the HOA at the time of the damage, not the new homeowner.

However, the specific terms of the HOA’s governing documents could potentially affect this general rule. For example, if the HOA’s bylaws or covenants, conditions, and restrictions (CC&Rs) state that all homeowners are responsible for sharing the cost of insurance deductibles, regardless of when the damage occurred, then it might be possible for the HOA to charge you for this cost.

Consulting with a Legal Professional

It’s important to consult with a legal professional to understand your rights and responsibilities in this situation. A lawyer can review the HOA’s governing documents and any relevant Minnesota laws to provide personalized advice.

Resources

• The Minnesota Attorney General’s Office provides a Homeowners’ Association Handbook that may be helpful.
• The Minnesota Statutes, particularly Chapter 515B, which governs common interest communities, may also provide relevant information.

Remember, this information is a general explanation and not legal advice. Always consult with a legal professional for advice tailored to your specific circumstances.