As a condo owner, the responsibility of insuring your unit lies with you, according to the NAIC (National Association of Insurance Commissioners). This means, if a leak in your condo causes water damage, it's typically your responsibility and not the HOA's (Homeowners Association).
Your condo insurance policy water coverage will generally cover water damage that results from your household appliances or your plumbing system. However, such damage must be accidental and not a result of neglect or wear and tear, says the Insurance Information Institute (III).
Water damage coverage in condo insurance is complicated. Water damage in your unit may be caused due to a leakage in the neighboring unit or an accident in your home may lead to water damage in the next unit. Also, a leaking pipe in the common area maintained by the HOA can cause water damage to your unit. It is important to know who is responsible in each scenario. For a better understanding, you must go through your condo's CC&R and master insurance policy.
In the event of water damage that has occurred in the neighboring units due to a mishap in your home that has led to flooding, your condo insurance may cover the repair and replacement costs borne by the neighbor. However, if the flooding is because of negligence on your part, you may have to pay the damage costs from your own pocket.
If a pipe bursts in your neighbor's condo, and this leads to water leaking into your condo and damaging your drywall and furniture, your insurer could cover the resulting replacement and repair costs and then seek reimbursement from your neighbor's insurer. In some cases, your insurer may avoid the mess because it's not your responsibility and, therefore, neither is it their responsibility. In this case, you will be forced to sort out the issue with your neighbor.
If the water damage in your condo is accidental and not due to your negligence and lack of maintenance, your insurer will cover the costs. If the source of the water damage is in the neighboring unit, you must file a claim with your insurer. If the adjuster confirms the source of water damage to be outside your home, your insurance provider can collect compensation from the neighbor's insurer.
If the water damage is due to a leakage in the common area, you must inform your condo association. However, the HOA may compensate for expenses based on the original design of your unit. If you have renovated your unit and the improvements are covered in your condo insurance, the difference between the actual damage cost and the HOA's compensated amount will be paid by your insurer.
To minimize the effects of water damage to the condo, the HOA must do the following:
To protect your condo from water damage, ensure you maintain your water systems and appliances. Your insurer will not pay for any damage resulting from your negligence. When you're ready to secure a quality condo insurance coverage, talk to the friendly experts at Jack Stone Insurance Agency. We serve Antioch, Brentwood, and surrounding cities in California. Contact us today at 925-392-8365 to get started!