Plumbing damage causes entire unit stripped, who pays for finishing (flooring, etc)?

[tpro123]

What is the name of your state (only U.S. law)? MICHIGAN

I purchased a condo in Michigan through a bank. While in possession of the bank, a pipe busted (common element), which caused mold to grow throughout the unit. After extensive testing, it was declared mold-free. In order to do this, the whole unit was gutted (no drywall, flooring, cabinets, interior doors, trim and etc). I purchased it knowing that the HOA was to receive insurance money to fix the unit.

Now, the HOA-manager and contractor is stating that the flooring, cabinets, interior doors, trim and etc are "options" and that they are not covered under the repairs. Shouldn't this secondary damage, caused by a common element failure, force the insurance/HOA to repair the unit (including flooring/cabinets/interior doors/trim) back to the condition prior to the pipe's burst? Previously, the unit had solid wood cabinets, rich hardwood, premium carpet, and etc.

Please let me know.

Thanks again!

 

[nextwife]

You purchased a gutted unit from a bank and did not get, in writing, from the association and insurance company, exactly what would and would not be covered, or what, in insurance dollars, would be allocated to you for repairs?

In RE purchases, never "presume" anything.

 

[justalayman]

why did the pipe rupture? If it was due to no heat in the unit, the HOA is not liable for any of the damage and in reality, the owner of the unit is liable for the damages caused to HOA property.

I purchased it knowing that the HOA was to receive insurance money to fix the unit.

the HOA shouldn't be getting any money. The money (at least the money for the unit damages) should be paid to the owner of the unit.

Shouldn't this secondary damage, caused by a common element failure, force the insurance/HOA to repair the unit (including flooring/cabinets/interior doors/trim) back to the condition prior to the pipe's burst? Previously, the unit had solid wood cabinets, rich hardwood, premium carpet, and etc.

where in this entire situation did you purchase the unit? If you purchased it in the damaged condition, unless there was some contract stating the unit would be rebuilt, you bought a damaged unit. Due to that, if anybody would be due money, it would be the bank as they are who was damaged. Presumably you bought the unit at a discounted price due to the damage.