WATER INTRUSION & MOLD POLICY

Posted By mcooper on January 22, 2026

The following policies and procedures are designed to protect the financial interests of all 230 Unit Owners (“Owner”) and provide guidelines and procedures for handling routine and emergency plumbing issues within the Piazza Palermo Owners Association. These policies will apply to all reported cases of back-ups, water leaks and/or mold infestation within one or more of the project’s living units.

PREFACE

Pursuant to the documents governing Piazza Palermo, the Association is responsible for the maintenance and replacement of all Common Area plumbing lines. The Owner is responsible for the maintenance and replacement of plumbing systems located within the Residential Unit and those plumbing systems located outside the boundary of the Unit to the extent that the system exclusively serves the individual Unit, as well as the interior of the Residential Unit itself.

Common Area, as defined in the CC&Rs section 2.15, is a certain area designated as Common Area on the Condominium Plan, which is owned in undivided interests by the Owners of the Residential Units, as defined in this Declaration and as described on the Condominium Plan. The Common Area includes the bearing walls located within a Residential Unit and all structural components within a Residential Unit which may be required for the support of the building within which the Residential Units are located, except for the finished surfaces thereof. Any Utility Facilities serving more than one Residential Unit, wherever located, are a part of Common Area, as shown on the Condominium Plan.

Insurance

Pursuant to CC&Rs Section 11.3, each Owner shall maintain adequate levels of liability and property insurance for the Residential Unit against losses to personal property located within the Residential Unit or Exclusive Use Easement Areas and to any floor and wall surface materials (e.g. paint, wallpaper, mirrors, carpets, tile and hardwood floors), upgrades or Improvements installed by an Owner located within the Residential Unit or Exclusive Use Easement Areas. The Association’s insurance policies will not provide coverage against any of the foregoing. Additionally, Owner’s insurance must contain the following provisions:

Owners waive all rights of subrogation against the Association and any insurance maintained by /Owner must contain a waiver of subrogation rights by the insurer as to the Association and any first Mortgagee of a First Mortgage on the Owner’s Condominium, provided however, that a failure or inability of an Owner to obtain such a waiver will not defeat or impair the waiver of subrogation rights between the Owners and the Association set forth in the CC&Rs.
No Owner shall separately insure any property covered by the Association’s property insurance policy as described in the CC&Rs.

As described herein, you may be financially responsible to restore, repair and replace your Unit even if the leak is not your fault. Failure to carry insurance could cost you thousands of dollars. Be proactive, maintain all required insurance and be prepared!

Preventative Maintenance Requirements for Homeowners

Owners are expected to proactively perform regular inspections and maintenance on their plumbing lines which exclusively serve their Unit, plumbing fixtures and appliances whether free standing or built-in, including, but not limited to, all of the following:

Plumbing supply lines to toilets, sinks and other appliances;
Washing machine hoses;
Sewer lines, to the extent said lines exclusively serve the Unit;
Shut-off valves to ensure proper operation;
All appliances and fixtures that use or hold water; and
Exhaust fans (regularly use bathroom exhaust fans to keep units well ventilated in order to reduce moisture and the potential for mold growth.)

All such inspections, maintenance and repairs should be performed as needed, but at least annually, by someone qualified to recognize and perform the needed repairs.

Every Unit is equipped with water shut-off valves that shuts off water to the entire unit. The valves are located at the water sub meters in the units. In some units this is above the kitchen cabinets, and in other units, attached to the ceiling of the living room linen closet. Water to the Unit should be shut off if the Unit will be vacant for 48 hours or more.

If a repair is needed to a plumbing component in the Unit and the shut off valve does not properly shut off the water to the component, it may require a water shut down of the entire building. Owners must notify Management immediately of these repairs to coordinate a building water shut down.

The Association strongly encourages Owners to document all such inspections, maintenance and repairs so that the Owner can demonstrate to the Association that he/she has acted reasonably and responsibly in fulfilling his/her responsibilities.

Please note that an Owner’s failure to inspect, maintain and repair the plumbing lines, fixtures and appliances in his/her unit as stated in this policy may constitute negligence by that Owner. It is recommended that each Owner have a qualified contractor perform an inspection of the Unit on an annual basis and provide a copy to the Association’s managing agent.

Requests for Reimbursement

To submit a request for reimbursement from the Association for a plumbing repair up to $300 made in a Residential Unit, the Owner must submit the following to Management to present to the Board for consideration:

Submit a written request for reimbursement.
Submit a copy of the invoice and receipt of payment.
Submit a copy of the plumber’s report specifically identifying that the repair was made to an Association maintained component per the Maintenance Responsibility Chart (Exhibit B) of the CC&Rs and photograph(s) to substantiate the findings in the report. For back-ups, the report must indicate how far down the drain the clog was found, and provide a description and photo(s) of the item(s) that clogged the drain.

If approved, the Association will only reimburse an Owner up to $300.00.

WATER INTRUSION PROTOCOL: WHAT TO DO WHEN YOU DISCOVER A LEAK

The Association shall not be liable to any Owner or his or her tenants, guests or others, for damage to personal property, decorations, floor or wall coverings, and other similar items within a Unit, resulting from water which may leak or flow from outside of any Unit or from any part of the building, or from any pipes, drains, conduits, appliances or equipment or from any other place or cause, unless caused by the negligence of the Association, its Board of Directors, Agents or Employees.

Rule of Thumb: The Association is only responsible for plumbing repairs to common area components that do not exclusively serve a single Unit. Unit Owners are responsible for plumbing repairs to components that solely serve the Unit.

WATER INTRUSION (LEAKS)

Owners/Residents are required to report all water intrusions in their units to Management immediately. To avoid a delayed response, never report a leak via electronic transmission (email). . Upon discovery of a leak that is coming from a water supply line in the unit, if possible, Owners/Residents should shut off water to the entire unit at the water shut-off valves located at the water sub meters. In some units they are above the kitchen cabinets in other units they are attached to the ceiling of the linen closet. When a leak is coming through a wall or ceiling of the unit, Owners/Residents must report the water intrusion to Management immediately.

It is often impossible to determine who is responsible for a leak or water intrusion upon discovery, therefore, when responsibility is uncertain, the Association will repair the leak and initiate water mitigation by a preferred restoration vendor in all units affected. Additionally, the Association will have authority to direct the preferred restoration company to do everything necessary to mitigate water damage to all units affected. This includes but is not limited to accessing all affected units, placing necessary dry out equipment in each unit affected, removing: drywall, flooring, cabinets, baseboards, appliances, and other fixtures. Regardless of whether a unit is the source of the leak or is merely damaged by a leak in an

adjacent unit, the Association does not guarantee or warranty the condition of the removed items or whether these items can be reinstalled or reused or whether they will have to be replaced. Nor will the Association be responsible for any damage to these items. The risk of loss or damage to these items shall remain with the Owner. (As stated herein, Owners are required to carry their own insurance coverage to protect themselves against damage to these items.)

Owners will be advised once responsibility is determined. Unless negligence is proven, each Unit Owner will be responsible for repairs to his/her own Unit. A claim may need to be filed by each affected unit’s Owner on his or her own insurance policy as mandated by Article XI, Section 11.3 of the CC&Rs to cover the cost of damages. Again, even if a claim is filed by the Association, Owners of affected units are still responsible for making a claim on their individual insurance policy to pay for damages to items outlined in section 11.3 of the CC&Rs.

The Association will not clean or replace any of the Owner/Resident’s personal property. The Owner/Resident is solely responsible for cleaning or replacing any damaged furniture, clothing or other personal property within the Unit regardless of the person or entity responsible for the initial water intrusion. The Owner will also be responsible for the unit’s utility costs even if the contractor undertaking the remediation and restoration work uses these utilities.

Every Owner/Resident must make his or her individual decision whether to remain in the Unit during the remediation and restoration work. Anyone contemplating remaining in the Unit during this time should consult with their personal physician before making a final decision. Any Resident choosing to remain in the Unit does so at his/her own risk. The Resident, not the Association, shall be responsible for all relocation costs during the remediation and/or restoration period. If the Unit is occupied by a Tenant, the Owner and Tenant must resolve any issues associated with relocation between themselves. Pursuant to Civil Code Section 4775(b), the Association is not legally responsible and does not assume any responsibility for lost rent, temporary relocation costs and/or loss of use, if any.

CLOGGED KITCHEN LINES (Back-ups)

These types of clogs are typically due to resident’s improper use of their garbage disposal (i.e. disposing of foods and grease) or a malfunctioning garbage disposal. Foods like corn husks, egg shells, bones, celery, onion skins, rice, potato skins, and other fibrous items, or liquid or solid grease can cause a back-up in the drain line. If the kitchen drain is backing up in a Unit, the Owner/Resident, not the Association, must contact a licensed and insured plumber to clear the clog. If the clog was found in the common line, the Owner can submit a request for reimbursement to the Association as outlined in the “Requests for Reimbursement” section of this policy.

The Association conducts l maintenance of the common drain lines as required. Clogs found in the common drain line will be cleared by the Association. If there are subsequent back-ups in the same common drain line within a 30-day period of the first clog cleared, all Owners of units that share the common drain line will be called to a hearing to discuss the matter with the Board of Directors.

If water damage occurs, the Association is NOT responsible for repairs to any of the Units affected unless negligence by the Association is proven. Each Owner is responsible for repairs to his/her own Unit. If damage is substantial, it is recommended that Owners contact the insurance carrier for his/her individual homeowner’s insurance and file a claim for damages.

CLOGGED SEWER LINES

If a back-up occurs in a Unit, the Owner/Resident, not the Association, must contact a licensed and insured plumber to clear the clog. If the clog was found in the common line, the Owner can submit a request for reimbursement to the Association as outlined in the “Requests for Reimbursement” section of this policy. Owners are responsible for all sewer back-ups that occur in a pipe that solely serves the Unit, no matter where that pipe is located (i.e. even behind the drywall). Additionally, Owners are responsible for the plumbing lines located within their unit’s airspace such as the lines under sinks, toilet supply lines, etc. The Association is responsible for the common area plumbing lines.

There are sewer lines servicing each Unit at Piazza Palermo. Main sewer line blockages can be identified by the overflow or backing up of sewage into toilets and/or bathtubs. Please be advised that paper towels, facial tissue, and sanitary products are not safe to flush down the toilet. These materials clog the main sewer line.

The Association conducts required maintenance of the common drain lines. Clogs found in the common drain line will be cleared by the Association. If there are subsequent back-ups in the same common drain line within a 30-day period of the first clog cleared, all Owners of units that share the common drain line will be called to a hearing to discuss the matter with the Board of Directors.

WATER DAMAGE REPAIR RESPONSIBILITY GUIDE

COMMON PLUMBING COMPONENTS

A leak caused by a component maintained by the Association.

Association Repair Responsibility:

The Association will pay to repair the water leak, dry out the affected common areas and/or residential units affected, and will remediate any mold in the common areas and/or residential units when water intrusion can be attributed to a common area source.

Unit Owner Repair Responsibility:

Unless caused by negligence of the Association, each affected unit’s Owner is responsible for repairs to any floor and wall surface materials (e.g. paint, wallpaper, mirrors, carpets, tile and hardwood floors), and upgrades or improvements installed by an Owner in accordance with CC&Rs section 11.3 and all personal property of the Owner.

RESIDENTIAL PLUMBING COMPONENT

When a leak originates in a Unit, the Association is not legally responsible to repair the leak, dry out affected units, or repair the damage to the affected units. However, when responsibility is uncertain, the Association will repair the leak and initiate water mitigation in all units affected by a preferred restoration

vendor. Additionally, the Association will have authority to direct the preferred restoration company to do everything necessary to mitigate water from all units affected. This includes, but is not limited to, entering all units affected, placing necessary dry out equipment in each unit affected, removing: drywall, flooring, cabinets, baseboards, appliances, and other fixtures. Regardless of whether a unit is the source of the leak or is merely damaged by a leak in an adjacent unit, the Association does not guarantee or warranty the condition of the removed items or whether these items can be reinstalled or reused or whether they will have to be replaced. Nor will the Association be responsible for any damage to these items. The risk of loss or damage to these items shall remain with the Owner. (As stated herein, Owners are required to carry their own insurance coverage to protect themselves against damage to these items and in such cases are obligated to make a claim on their policy and to assist cooperation and communication with their insurance adjustor with the adjustor for the Association.)

Unit Owner Repair Responsibility:

Each Unit Owner affected by a leak, including the originating unit, must be prepared to protect and restore his or her own Unit. Unless negligence by the Owner of the originating Unit is proven, each Unit Owner will be responsible for repairs to his/her own Unit. A claim may need to be filed by each affected unit’s Owner to cover the cost of damages. If a claim is filed by the Association, Owners of affected units are still responsible for damages to items outlined in section 11.3 of the CC&Rs which sets forth the obligations of the individual Owner to insure his or her Unit.

The Association will seek to recover costs in accordance with the CC&Rs. Other affected unit Owners must seek their own recovery from the party ultimately responsible. The Association will not act as the representative for any Owner/Resident on the issue of cost recovery. After due notice and a hearing, the Association may levy an Enforcement Assessment pursuant to Section 6.6 of the CC&Rs against any Owner who causes damage to the Common Area or any area which the Association is obligated to maintain.