When a housing unit shares a wall or floors, roofs etc. but are owned instead of rented, how are common issues handled? For example, if I own a townhouse in a row of 4, but a tornado rips the roof off the overall building, who’s responsible for paying for damages?
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There is an owners association. They take dues monthly and keep accounts for shared expenses, as well as a larger fund for emergencies or big projects. Even in the best run ones, the emergency fund is often not big enough to cover an expense that affects all units (E.g. replacing the roof). The association has the power, if enough owners vote for it, to levy a “special assessment” on the owners, forcing them to pay the difference.
the association also carries insurance for all of the common grounds, with a heavy deductible per unit. Condo insurance includes gap insurance to pay this deductible (mine is $50k)z
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