HOA Fire Case Study — How One Loss Across 14 Units Was Handled the Right Way

A kitchen fire started in one unit and spread through the roof system, damaging 14 attached townhomes.

Within two weeks, the full building estimate was completed. Coverage was separated correctly between the HOA and each unit owner, and the entire project was approved before permits were even issued.

The entire rebuild was completed in approximately nine months—a process that could have easily taken two years.

The Situation

This was a townhouse-style HOA.

• 14 attached units

• Two-story structures

• Roughly 18 feet wide by 38 feet deep

• Shared roof system and structural framing

The fire started in one of the end units from a gas stove.

It spread quickly:

• through the trusses

• across the shared roof

• and into multiple adjoining units

The originating unit was heavily damaged.

The rest of the building:

👉 sustained significant fire, smoke, and structural damage

The entire structure was compromised—from roof down into the basement storage areas.

What Made This Different

We were there immediately.

Fire crews were still putting the fire out.

All 14 unit owners were displaced.

There was no functioning board structure—only a property manager trying to manage the situation.

And like most HOA losses:

👉 no one fully understood what needed to happen next

The First Step — Stabilization (Done Correctly)

The building was secured immediately.

But not overbuilt.

Instead of excessive temporary construction:

• targeted boarding was installed

• selective framing was used

• tarps were installed with drainage

👉 enough to secure the structure
👉 without wasting money on work that would be torn out

This is where many projects go wrong early.

The Turning Point — Explaining the Process

All 14 unit owners were brought together.

They were overwhelmed.

That’s expected.

The process was explained clearly:

• how HOA coverage works

• how HO6 policies work

• how estimates must be separated

• and why everything depends on the estimate

They didn’t understand everything.

But they understood enough to know:

👉 there was a clear path forward

And that mattered.

Vetting the Contractor (Real-World Example)

There was no formal board vote.

But the group collectively decided who to move forward with.

And the decision came down to one thing:

👉 who could actually explain the process

Not:

• who showed up first

• who promised the fastest rebuild

• or who pushed for immediate contracts

👉 who understood the system

That’s how you vet the right contractor.

The Estimate — Built the Right Way

This is where the claim was won.

Because the estimate was written correctly from the start.

Each unit was:

• identical in structure

• similar in layout

So the estimate process became:

👉 repeatable and scalable

Each unit was written:

• individually identified

• but structurally mirrored

This avoided:

• inconsistent scope

• missing items

• and duplication

The Only Bid Required

Because the estimate was written properly:

👉 traditional bidding became unnecessary

The only external bid required:

👉 crane work for truss replacement

Everything else:

👉 was captured within the estimate

This is what happens when you understand the system.

Carrier’s Builder Review

The insurance company sent out their own builder.

That’s standard.

His role:

👉 verify the damage
👉 review the estimate plus wrote their own

Not:

👉 separate coverage
👉 or structure the claim

The estimate was already done correctly.

So the review:

👉 resulted in minimal adjustments

Why That Mattered

Because once the builder aligned:

👉 the carrier had direction

That allowed the process to move forward quickly.

Unit-Level Breakdown (Where It Gets Important)

Out of 14 units:

• 11 were mostly original

• 3 had upgrades (flooring, kitchens, finishes)

This made the separation clean.

For upgraded units:

• full estimate was written

• HOA scope was identified

• credits were applied

Example:

• tile vs carpet

• upgraded kitchen vs original

Everything was:

👉 clearly separated
👉 clearly documented

The Paint Exception (Bylaws Matter)

The bylaws stated:

👉 HOA coverage stopped at primer

That meant:

• finish coats

• trim

• final paint

👉 were covered under each unit owner’s policy

So every unit:

👉 still required an HO6 component

Even if minimal.

Why Advances Were Limited

Because most unit-level work:

👉 was small (paint, minor upgrades)

Carriers:

• issued small advances

• sometimes paid ACV directly

• and closed those portions quickly

This avoided unnecessary delays.

Contents Handling

Contents were handled separately.

Each unit owner:

👉 managed their own contents claim

There was no confusion here.

Because:

👉 responsibility was clear

Permits + Timing (Where This Project Won)

Permits were submitted early.

While:

• estimates were being finalized

• approvals were being aligned

So by the time permits were ready:

👉 the claim was already settled

That’s how this should work.

Total Timeline

From fire to completion:

👉 approximately 9 months

This could have easily taken:

👉 18–24 months

The difference:

👉 the estimate
👉 and the structure of the process

ALE Impact (Real Consequence)

Some unit owners:

👉 had limited ALE coverage

So they:

• stayed with family

• absorbed some of the displacement

If this project took longer:

👉 those problems would have multiplied

Final Outcome

At completion:

• all work finished

• all units restored

• final documentation submitted

• certificates of satisfaction issued

Everything was paid:

• HOA portion

• HO6 portion

• less applicable deductibles

The HOA covered their deductible through reserves.

What This Proves

This wasn’t luck.

This was structure.

When:

• the estimate is written correctly

• scope is separated properly

• and responsibility is clear

👉 the entire system works

What This All Comes Down To

Everything you’ve read across this entire HOA section leads here:

👉 the estimate controls everything

Not:

• the adjuster

• the contractor alone

• or the policy language

👉 the estimate

Final Thought

This project worked because:

👉 it was controlled from the beginning

Not rushed
Not guessed
Not overcomplicated

Just:

👉 structured correctly

One Last Thing (What Everything Comes Down To)

Everything comes down to the estimate.

If your claim is delayed, underpaid, or being pushed back, that’s usually the reason.

If you’re not finding a clear answer to your situation here, go through the other case studies. Most real-world claim problems — and how they were handled — are already shown there.

And if your estimate is in good shape, the other issues tend to be straightforward to push through.

To understand why this happens and how to fix it, review the following:

Why Insurance Claims Get Delayed (It Comes Down to the Estimate): The Real Reason Claims Get Delayed
The Entire Insurance Industry Runs on One Thing That’s Rarely Explained: It’s the Estimate — And This Is Why Contractors Get It Wrong: Contractors Don’t Fail at Building — They Fail at Writing
The Entire Insurance Industry Runs on One Thing That’s Rarely Explained: It’s the Estimate — And This Is Why Adjusters Rewrite Instead of Approving: Adjusters Don’t Approve What They Can’t Follow
The Entire Insurance Industry Runs on One Thing That’s Rarely Explained: It’s the Estimate — And This Is What It Should Look Like: A Proper Estimate Is Not Just a Number

How to Read an Insurance Estimate (Room by Room): Why Most Homeowners Feel Confused by Estimates

How to Vet a Contractor, Public Adjuster, and Mitigation Company: Why This Matters More Than Anything Else

If you still have questions about your claim, visit our Homeowners Insurance Claim FAQs page for quick answers and links to detailed guides.

Learn More At ClaimHelpMe.com

This page explains the basics of how this part of the insurance claim process works.

However, inside ClaimHelpMe.com, homeowners can access real repair estimates, detailed examples, and step-by-step explanations showing how claims are documented, evaluated, and presented to insurance carriers.

The free content explains the fundamentals.
The ClaimHelpMe platform shows how the process actually works.

Explore more homeowner insurance claim guides in our Claim Guides section.

About The Author

Mark Grossman is a Licensed Public Adjuster and NASCLA Certified Contractor with 28 years in the restoration insurance industry and 35 years in construction.

Learn more → Mark Grossman