What should an HOA board do when its contractor damages an owner's home?

By OurHOA · General information · Revised October 18, 2026

When an HOA vendor damages an owner's home: who pays, the vendor's liability claim, when the master policy applies, letters to send and a 60-day timeline.

Part of the HOA board handbook: vendors, projects and upkeep.

The short answer

When a roofer, painter, tree crew or landscaper the association hired breaks a window, cracks siding or lets rain into a unit, the vendor's commercial general liability policy should pay first. The association's job is to get the claim moving: document the damage, tell the vendor in writing, make sure the vendor reports it to its insurer, keep the owner informed, and hold back the vendor's final payment until the claim is settled or the repair is done. The association's own master policy usually comes second, and only for property it insures. The owner's homeowners or HO-6 policy is the owner's own fallback. The board should not promise the owner that the association will pay, and it should not tell the owner the matter is between them and the vendor. Both answers cause trouble later. Who owes what depends on your declaration, your contract with the vendor and your state's law, so treat this guide as general education and not legal advice. Call the association's insurance agent early, and call the association's attorney if the damage is large or anyone is hurt.

The first 48 hours

Stop the damage from getting worse. If the roof is open, the vendor should tarp it the same day. If a sprinkler head is broken, shut off the zone. Most property policies expect reasonable steps to protect property from further loss, and an insurer can push back on damage that grew while nobody acted. Then collect evidence before anything is fixed. Photograph the damage with something for scale, plus the work area, ladders, equipment and any debris. Get the date and time, the crew foreman's name and what the crew says happened. Ask the owner for their own photos and for any doorbell or security camera clips. Save it all in one shared board folder. Put one director in charge of the file. That person talks to the vendor, the owner and the agents.

Read the contract and the certificate

Pull the signed vendor contract and the certificate of insurance on file before you call anyone. Look for four things. An indemnity clause, where the vendor agrees to cover losses caused by its work. An insurance clause, with the coverage types and limits the vendor had to carry. A requirement that the association be named as an additional insured. And a warranty or repair clause that says the vendor fixes damage it causes at its own cost. Check the certificate dates against the date of the damage. If the general liability policy had lapsed, you need to know now, because the claim path changes. Our guide on how to check a vendor's certificate of insurance explains how to read the ACORD 25 form and why a check mark in the additional insured column is not the same as the endorsement itself. Also confirm the vendor is licensed where your state licenses that trade. In Florida, section 489.113(2) says a person must be certified or registered to engage in the business of contracting, and local licensing ordinances still apply. An unlicensed vendor in a licensed trade is a fact your attorney will want.

Who files the claim, and with whom

Send the vendor written notice and ask it to report the loss to its liability insurer within a few days and give you the claim number. Liability policies generally require prompt notice, and a late report can hurt the claim. The owner is usually the person who files against the vendor's insurer, because the owner's home was damaged. The association should introduce the parties in writing and stay copied. If the damage is to property the association insures, such as a condo building's exterior walls or roof, the association files for that part. This is a third-party claim, and it works differently from claiming on your own policy. The Texas Department of Insurance points out, in its auto claim guide, that the prompt payment law does not apply when another party's insurer is paying, though the company must still act in good faith. Texas Insurance Code section 542.051 defines a claim under the prompt payment rules as a first-party claim by an insured or beneficiary. The same TDI guide notes that you do not pay a deductible on a claim against someone else's insurer. If the vendor's carrier stalls, the owner can claim on their own policy instead, pay their deductible, and let their insurer recover from the vendor's. Watch the deadline to sue. Two years after the damage is the general rule for negligence or injury to property in Texas (Civil Practice and Remedies Code section 16.003), Florida (section 95.11(5)(a)) and Colorado (C.R.S. 13-80-102(1)(a)). Put the date on the board calendar.

When the association's master policy applies

In a single-family HOA, the association usually insures only the common area. Texas Property Code chapter 209 has no insurance mandate for property owners associations, so the declaration decides what the association covers. Damage to a house there is usually for the owner, the owner's insurer and the vendor's insurer to settle, with the board helping. Condos and attached townhomes are different, because the association may insure part of the damaged home. In a Texas condominium, Property Code section 82.111(a) and (b) require property insurance on the common elements and, where units have horizontal boundaries, on the units, though not on improvements and betterments the owners installed. Section 82.111(e) says a covered claim must be submitted by and adjusted with the association. Section 82.111(l) lets the association charge the deductible to an owner only when damage is due to an act or omission of that owner or the owner's guest or invitee, which does not describe the association's own contractor. In Florida, section 718.111(11)(f) puts condominium property as originally installed on the association's policy and leaves floor, wall and ceiling coverings, cabinets, countertops, appliances and fixtures to the owner. Under 718.111(11)(j), deductibles and damage beyond coverage are a common expense unless an owner or the owner's family, tenants, guests or invitees caused it. In Colorado, C.R.S. 38-33.3-313(1) and (2) require coverage on common elements and, in condos, on units except finished interior surfaces, and 313(6) lets the association adopt written policies on deductibles and assess negligent owners. If the master policy pays, the association's insurer can pursue the vendor's insurer to get its money back. Ask your agent before filing whether a small claim is worth it. Our guide on whether to file an insurance claim or pay out of pocket covers that tradeoff.

Letters you can copy

To the vendor: "On [date], while performing work for [Association name] under our contract dated [date], your crew damaged [describe damage] at [address]. Photos are attached. Under sections [ ] of the contract, please report this loss to your general liability insurer within five business days and send us the insurer's name and claim number. Please also tell us whether you will repair the damage yourself under the contract's repair clause. We are holding $[ ] of the final payment until this is resolved." To the owner: "We are sorry for the damage to your home on [date]. [Vendor] was working for the association and has been asked to report the loss to its liability insurer. We will send you the claim number when we have it, and you may contact the adjuster directly. You may also want to notify your own homeowners insurer. The board has not decided who is responsible for any amount, and this letter is not a promise of payment. [Name] is the board's contact for this claim at [email or phone]." Motion for the minutes: "Moved that [director] manage the claim for damage at [address] caused during [project], hold $[ ] of the final payment to [vendor] until the claim is resolved, and report at the next meeting."

A sample 60-day timeline

Day 0: damage found, area made safe, photos taken, director in charge named. Day 1: written notice to the vendor and letter to the owner. Day 2: call the association's insurance agent and describe what happened, even if you don't plan to file. Day 7: vendor's claim number due. If you don't have it, send a second letter and copy the vendor's insurance agent listed on the certificate. Days 7 to 21: adjuster inspects. The owner gets two repair bids if the vendor is not doing the repair. Day 30: board reviews the file at its meeting. If the vendor's insurer has denied the claim or gone quiet, decide whether the association files on its own policy for the property it insures and whether to involve the attorney. Day 60: repair done or scheduled, final payment released or held with a written reason.

Mistakes boards make

Paying the vendor's final invoice the week of the damage, which gives away the one thing that keeps the vendor answering the phone. Letting the vendor's foreman promise the owner a repair with nothing in writing. Telling the owner the association will cover it, before anyone has read the contract or the policy. Having the association's handyman fix the damage before the adjuster sees it. Filing on the master policy for a loss that should sit with the vendor, then living with a claim on the association's loss history. At renewal, tighten the contract. Require general liability limits that fit the job, the association as additional insured by endorsement, an indemnity clause, a repair-at-your-cost clause and written notice to the association within 24 hours of any damage. Our guide on red flags in HOA vendor contracts lists the other terms to check before signing.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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