Aaron Stanton and James Stevens Discuss Critical Condominium Insurance Requirements and Potential Pitfalls for Unit Owners in WGN Investigates Special Report

Nearly three years after a fire ripped through a suburban Park Ridge condominium complex, unit owners are frustrated at the lack of relief provided by their condominium insurance policies and a stalled reconstruction effort. Since then, unit owners have continued to pay their mortgages, homeowner association fees, insurance, and other costs, even as the property’s restoration has been significantly delayed.

As unit owners hoped for a quick rebuild, only the roof and windows have been installed to date. A timetable for the building’s complete rebuild has not been established with owners being told that a gap of millions of dollars exists between the insurance company and the costs for the restoration company.

“Often times, there’s a delta between the cost to rebuild and what the insurance company is willing to pay,” said Aaron Stanton, Chair of the Firm's Litigation group. “I am constantly battling with insurance companies on coverage.”

In such cases, state law says owners can either pay the difference, or they can move to sell the property and split the proceeds. Ideally, a condominium association’s insurance should cover the full cost of the rebuild. However, insurance premiums in recent years have risen so rapidly that many condo associations have taken less coverage to save money.

“That’s a perilous move, in my view,” said James Stevens, Partner in the Firm’s Condominium & Community Associations practice group, and a leading authority on the Illinois Condominium Property Act. “The way it should work in an ideal world is there is enough money to rebuild. But at the end of the day, there is always a way out if that problem can’t be solved.”

Click here to view Aaron and James’ discussion with WGN Investigates.