An association that holds the only policy may owe a duty to file the claim
An association that holds the only policy may owe a duty to file the claim
2026-09-15 · Mississippi · Courts
A Mississippi condominium association that is the only named insured on the master policy cannot dispose of a unit owner's damage claim by pointing at the maintenance schedule. Mortera v. Kona Villa Owners Association, Inc., No. 2023-CA-01297-COA, became final on February 18, 2026 when the Supreme Court dismissed its own grant of certiorari — leaving the Court of Appeals decision standing as binding law.1
A water heater, $59,000, and a policy the owner could not see
Gilberto Alarcon Mortera's condominium in Diamondhead took roughly $59,000 in damage when the water heater in the unit above his failed. The Kona Villa declaration names the association as the insured and designates it the “Insurance Trustee,” holding casualty proceeds “in trust… for the benefit of the unit owners.”
The association contacted State Farm, was told informally that interior repairs are a unit owner's responsibility, and declined to pursue the claim. It also refused to let the carrier give Mortera a copy of the policy.
Mortera had already been told by the federal courts that he could not sue the insurer himself. In Mortera v. State Farm, 561 F. Supp. 3d 684 (S.D. Miss. 2021), affirmed by the Fifth Circuit in 2022, the court found he lacked standing — while noting that the policy “does, however, extend coverage to certain property that Mortera alleges was damaged.” The circuit court then granted the association summary judgment by reading only the bylaws provision assigning water heaters to unit owners.
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