Is weather-related damage covered by owners’ associations?

Welcome back to the Meridional blog. Today we’re looking at damage caused by weather events (rain, snow, hail, etc.) in owners’ associations and whether insurance covers it.

In Andalusia, insurance for owners’ associations is not a legal requirement. That does not mean, however, that taking out such cover should be overlooked; indeed, it is highly recommended for the benefit of the association itself. On the other hand, taking out insurance does not necessarily mean you can rest easy in the face of any damage that may be caused by such weather events.

The impact of weather-related damage

The damage caused by these weather-related problems can lead to many disputes, disagreements or misunderstandings between members of the community and the insurance company.

In fact, it happens more often than you might think. Elements such as rain, hail or snow may or may not be covered under a homeowners’ association’s insurance policy, and to varying degrees. And there are variations not only in the type of weather event that occurs, but also in the intensity with which it occurs and affects us.

Many clauses in community insurance policies stipulate that these phenomena must exceed – or not exceed – certain levels of intensity as a condition for determining what type of compensation or indemnity we will receive. In such cases, the relevant official bodies and the evidence provided and validated determine whether the levels reached by the event correspond, or do not correspond, to those set out in the policy terms.

Communities are often unaware of a very important and fundamental fact: certain meteorological, geological or seismic events are insured directly by the Insurance Compensation Consortium (CCS) and not directly by their own insurance company.

Basic insurance cover for owners’ associations

Insurance matters and the procedure for dealing with weather-related damage, whether minor or more serious, are primarily the responsibility of the community chairperson, who must be familiar with the protocol for reporting the claim to the insurer or, if so agreed with the administrator, ensure that the latter initiates the necessary procedures with the insurance company.

But it is the chairman who must be fully aware of the contents of the policy, its clauses, conditions and cover.

It is standard practice for this type of policy to provide cover against the following types of weather-related damage:

– Rain. A maximum rainfall intensity is usually established, and any flooding this may cause is taken into account.

– Snow. It is common practice not to include an intensity clause. One area where cover must be provided is for damage caused by snow accumulation and the resulting excess weight. This tends to affect house roofs in particular, especially when they are not properly prepared.

– Hail. A standard owners’ association insurance policy usually covers damage caused by hail.

– Wind. Insurers do not usually cover wind damage below a certain speed, and this varies depending on the insurer and the policy.

– Lightning strikes. If the building is struck by lightning, the repair costs will be borne by the insurance company.

It is therefore essential to be familiar with all the clauses in the contract – both the general and the specific ones – in order to be clear about which aspects are covered by compensation and within what limits.

As we have said before, it is primarily the chairperson or the administrator (if this has been agreed as part of their duties) who are responsible for managing everything from the taking out of cover to the handling of claims, and for ensuring that all procedures are followed.

Insurance and cover for weather-related claims

Cover does not always include all types of damage caused by adverse weather conditions, as certain aspects of the claim are excluded.

In such cases, the Insurance Compensation Consortium covers these events. This provision may apply to earthquakes, tsunamis, volcanic eruptions, the impact of celestial bodies, exceptional flooding or major storms.

Unlike insurance companies, which have the option of sending repairers to the policyholder’s home, the Consortium pays the compensation amount in cash. Each policyholder must then contact the appropriate tradespeople and carry out the necessary repairs.

When the Insurance Compensation Consortium deals with extraordinary risks and a declaration of a disaster area, it makes the payment immediately, providing a further lifeline for the economic recovery of those affected.

Remember, the Insurance Compensation Consortium only provides cover if you have taken out insurance with it, subject to its exclusions. If an area is declared a disaster zone, you may be eligible for compensation even if you do not have insurance, although this is an exceptional circumstance that is at the Government’s discretion.

We therefore suggest that you ensure that those in charge of your residents’ association are aware of what the residents’ association insurance covers and why it is so important to keep it up to date and as comprehensive as possible.

We hope you’ve found all these tips useful and that you now realise that taking out insurance for your owners’ association is one of the best investments you can make.

In At Meridional, we work with several insurance companies which offer policies and customer service in Spanish and English. Please do not hesitate to contact us so that we can provide you with the best possible quote.