Management Company Withholding Insurance Payout

[Hawkes]

Hello all,

My question involves a condominium I own located in the State of Virginia. About three months ago, my unit was flooded as a result of a leaky toilet in the apartment above it. I had the damage mitigated immediately - the insides were gutted and dried out to remove the resulting moisture. After a lengthy wait, the insurance has finally paid out funds from the master policy to the management company for the restoration of my apartment. Now the management is telling me that I need to have my contractor invoice them directly, rather than cutting me a check for the full amount they received from the insurance company.

So my question is this: from a legal standpoint, to whom does this money belong? Is it the association's because they are the policy holder, or is it mine because I own the unit and I pay a fee each month that includes the cost of carrying the policy? Does the condo association have the right to withhold these funds from me like this? It seems to me that the insurance payout is intended to cover my personal loss, not to be hijacked by the management. Am I wrong?

 

[festival]

In many condos, you own the "paint in", not including the sheetrock on the perimeter walls and ceiling. So the sheetrock and other common elements that were repaired (or protected by the drying out) do not belong to you, and you have no personal loss with respect to these elements.

Check your governing documents. What is the definition of your unit and unit boundaries? There is also probably a provision that states that the association acts on your behalf for insurance claims.