Condo insurance is a crucial safeguard for condominium owners, but when water damage strikes, understanding where coverage starts and ends is key. Not all water incidents are treated equally, and the fine print can determine whether a costly repair comes out of pocket or is picked up by the insurer.
The main role of condo insurance (often called an HO-6 policy) is to protect the interiors of an individual unit and personal belongings, while the condo association’s master policy covers common areas and the building structure. When it comes to water damage, condo insurance generally covers sudden and accidental water damage caused by events like:
Importantly, the damage must occur quickly and unexpectedly; insurance companies won’t pay for gradual leaks or issues resulting from neglect or lack of maintenance.
Certain types of water damage fall outside standard condo insurance:
Flooding from natural events (such as heavy rain, rising waters, or hurricanes): Requires separate flood insurance through the National Flood Insurance Program (NFIP) or private insurers.
Sewer or drain backups: Coverage may be available, but only as an added policy endorsement, not by default.
Damage due to neglect: Claims will typically be denied if the water damage results from continuous leaks, poor upkeep, or failure to fix known plumbing issues.
A helpful guideline: if water “comes down” (as in a burst pipe or rainwater leak), it’s more likely to be covered; if water “comes up” (such as flooding from the ground), standard condo insurance won’t help without additional flood coverage.
Responsibility for water damage in a condo often depends on both the source of the water and the provisions of the condo association’s master policy. Generally:
If water damage starts inside the unit such as from your own plumbing—your condo insurance covers your property and improvements, while the HOA master policy may cover structural repairs.
If water seeps in from a common area (for instance, a leaky roof or broken pipe in a shared wall), the HOA’s master policy may be responsible for repairing the building or common space, but your policy covers personal belongings and interior repairs.
If a neighbor’s unit causes the water damage, your insurer may pay for your losses and then seek reimbursement from the neighbor’s carrier (subrogation).
It’s essential to review the condo association’s declarations (CC&Rs) and master policy for clarification, and consult an insurance agent if you’re unsure.
To be confident your condo insurance is up to the challenge:
Regularly inspect and maintain all appliances and plumbing within your unit.
Consider endorsements for sewer backup or specific high-value items if you live in flood-prone or older buildings.
Review and understand both your policy and the association’s insurance annually to close any gaps.
If you live in a flood zone, inquire about National Flood Insurance Program (NFIP) coverage or a private flood policy through FEMA.
Water damage can happen in the blink of an eye. Jack Stone Insurance Agency specializes in policy reviews that clarify what’s protected and what needs an upgrade ensuring no surprises if the worst happens.
Contact us today for a no-obligation condo insurance consultation. Give your home and your peace of mind the protection they deserve!
It may cover sudden, accidental water leaks from a neighbor, but it’s essential to document the incident and contact both insurers for claim handling.
No. Flooding from outside the building is not covered. A separate flood insurance policy through FEMA or a private company is required.
If the mold results from a covered, sudden water loss and is addressed promptly, limited coverage may apply. Mold from ongoing leaks or neglect is almost never covered.
Standard policies generally do not cover this, but an optional sewer backup endorsement can be added for broader protection.
