Somber/random question but what happens to those who paid off mortgage and those who still had mortgages?

The Condo Association also has a general liability policy that will pay out - I've read both $2 and $5 million dollars so not sure which - but that has to be split between all the owners.

There will probably be a lawsuit against the city and that one inspector, but I'm not sure how far that will go.

The land might have value at some point if it could be sold to another developer, but I wouldn't be surprised if it became a park either. That one study by the college guys said that particular land had subsidence issues. The city might not let a condo be rebuilt.

Insurance for the rest.

How about the condo association board members? Do they have personal liability exposure?

TriAg2010 said:

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How about the condo association board members? Do they have personal liability exposure?

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If I was on a board I would ensure I was covered by a D&O policy.

BTW - I would do this no matter what board or advisory council I was a part of. Either ensure you have an indemnity clause and insurance coverages.

Very remote the board members have any personal liability unless they were down there with hammers and chisels weakening the building.

Most insurance will indeed have a lesser amount on the "per occurrence" and this is just one occurrence - likely even combining in need to demo the remaining structure.

Insurance will likely be eaten through by recovery, waste removal, and any subsequent remediation. Absolutely Miami-Dade and Surfside will ask to be reimbursed for costs incurred. Yes, FEMA funds will be provided but any available recovery from the insurance will be used first.

I think its a terrible thing, but there is likely no payment for the condo owners and families of deceased unless there was some really big company behind the condo towers. But Surfside Champlain Towers South, LLC is likely headed to immediate bankruptcy. (I made the name up, but my experience is that these projects are put into separate entities for explicitly this potential for catastrophic event).

Interesting. I was thinking along the lines of some residents claiming gross negligence along the lines of "you didn't adequately warn us of the dangers (in the April letter to owners) or hire a competent engineering firm to survey the building."

We had a family acquaintance involved in the partial collapse of that condo parking garage in Dallas several years ago. As I recall, the board had hired a landscaper. The landscaper brought a bunch of mulch or soil and temporarily put it on top of the garage. It rained, soaked up water, and overloaded the structure. Board members got their pants sued off.

Were they successful in a lawsuit against any particular board member personally or did they settle with insurance companies representing the building, owners, board members, subcontractor, etc?

If you have any sort of personal assets, I would ensure I was covered from any personal liability associated with being a board member or leader of HOA, company board, bank board of advisers, school board, etc.

People can and will sue everybody who ever sniffed responsibility around these condos. Having legal advice and initial defense costs covered by a policy will be critical.