When a storm, a fire or a burst riser damages a condominium building in Illinois, the claim on the master policy belongs to the association. I'm a licensed public adjuster in Illinois and Indiana, and I represent the association on that claim: I inspect the building, read the master policy, price the repair and negotiate it with the carrier.
The board and the property manager get written updates on what is agreed, what is disputed and what has been paid.
The master policy must cover the common elements and the units at not less than full insurable replacement cost, less deductibles.
Where an owner's own policy covers the same property, the association's policy is primary.
The carrier settles a master policy loss by and with the association, and pays the association or its insurance trustee.
Section 12 of the Illinois Condominium Property Act draws the line, and your declaration and the board's decisions fill in the rest. The parts in blue are on the association's policy. The dashed layer belongs to each owner.
A common element. On a flat Chicago roof the damage is often under the membrane.
12(a)(1)Masonry, siding, flashing and the openings in them, as your declaration defines them.
12(a)(1)On the master policy unless the board has decided otherwise.
12(b)The shared core of the building, and the pipes and wiring that serve more than one unit where the declaration makes them common.
12(a)(1)Covered by the association's policy, except as the board has determined otherwise.
12(a)(1)Counted as common elements by the Act.
12(b)Not common elements. Owner improvements and betterments are on the master policy only if the association chose to insure them.
12(b)Many Chicago condo buildings were built under older codes. When a damaged part is rebuilt, the city can require work the old building never had. The Act makes the master policy carry two coverages for that: Coverage B for demolition and Coverage C for the increased cost of construction.
Together they must be at least 10% of each insured building's value or $500,000, whichever is less. Your policy may carry more. I read the declarations page for the actual limits, and my article on code upgrade coverage in Illinois explains what the coverage pays for.
| Insured value of one building | 10% of that value | Minimum for Coverage B and C together |
|---|---|---|
| $2,500,000 | $250,000 | $250,000 |
| $5,000,000 | $500,000 | $500,000 |
| $12,000,000 | $1,200,000 | $500,000 |
Owners ask the board when they will get a cheque. Section 12(g) answers it: the money follows the repair.
Or an insurance trustee the association names for the purpose. The money is held in trust for the unit owners and their lenders, as their interests appear.
The roof, the walls, the shared core and the bare walls, ceilings and floors of the units. This is why the building scope has to be complete before the first payment is spent.
Only if your master policy covers owner improvements and betterments. Many do not, and then those layers go to each owner's own policy.
After the common elements and the units are completely repaired, or when the association stops acting as trustee.
The first conversation, the inspection and the policy review cost the association nothing. If the board hires me, my fee is a share of the insurance payments on the claim, at the rate written in the contract signed before I start.
Each owner's unit policy covers their layer and their belongings, and pays after the association's policy where both cover the same thing. If you own a unit and want your side handled, my page on condo insurance claims for unit owners explains how I work it next to the association's claim.
To start, I need:
I speak English, Ukrainian and Russian.
+1 224-481-2095 volodymyr@staterestoration.usBoard members can reach me Monday to Friday from 7 AM to 7 PM, and on Saturday and Sunday from 9 AM to 5 PM.
The association, because it is the named insured on the master policy and the Act says the loss is adjusted by and with it. Your board decides who signs for the association. The contract names the fee rate before I start any work.
No. The owner's adjuster works on the owner's unit policy: floor coverings, cabinets they installed, their belongings. I work on the master policy. Because section 12(f) makes the association's policy primary where both cover the same property, the two estimates should be kept apart line by line, and I share the building scope with the owner's adjuster when the board agrees.
Read the master policy first: it sets the notice terms and the time limit to sue, and they differ between carriers. My article on Illinois insurance claim deadlines lists the dates to check. Report the loss to the carrier as soon as the board knows of it.
I am a licensed public adjuster working for policyholders, not an attorney. Questions about your declaration or bylaws go to the association's counsel. What the carrier pays depends on the master policy wording, and nobody can promise a result in advance.