If you have condo insurance, it’s important to understand what your policy covers. That way, you can know where you are protected and what gaps you might need to fill.
When it comes to water damage, your policy likely covers some instances, especially those related to your building’s plumbing. That said, other major forms of water damage—such as damage from flooding—may not be covered.
Here’s a closer look at what you need to know to help ensure you have the protection you need.
Key Points
• Condo insurance typically covers water damage from plumbing-related incidents within units, but flooding damage requires separate flood insurance policies for comprehensive protection.
• Master policies funded by maintenance fees cover common areas like roofs and stairwells, while personal policies cover unit interiors and individual property.
• Coverage applies to sudden or accidental water events, including burst pipes, appliance malfunctions, and storm-driven rain damage to fixtures and personal property.
• Damage from wear and tear, poor maintenance, slow leaks, and preventable failures like corroded pipes or worn-out appliance hoses is generally excluded.
• Sewer backups typically require additional coverage beyond standard policies, while flood insurance separately covers damage from rising waters and major storms.
When Condo Insurance Covers Water Damage
When you buy a condo, you are often buying a unit that is part of a larger building. As a result, there are typically two condo insurancepolicies required to make sure the building and your home are covered.
First, a master policy covers the building structure. Premiums for this policy come out of your monthly maintenance fees. The policy covers common areas, such as the roof, the basement, stairwells, and elevators. In general, you are not responsible for water damage in these areas.
In some cases, the master policy will also cover portions of your unit. Some policies may protect your unit as it was originally built. Under these policies, you are responsible for ensuring alterations to the original plans, such as renovations. In other buildings, the condo association is responsible for insuring bare walls, ceilings, and floors against water damage. In these cases, you’d be responsible for everything else, such as damage to cabinets, appliances, and bathroom fixtures.
Your personal policy is a type of homeowners insurance that typically covers everything that your condo’s master policy doesn’t. (This homeowners insurance guide can help you learn more about what homeowners’ insurance typically covers and how it relates to buying a home.) As a result, it’s important to thoroughly understand what your condo’s association and master policy will cover, so you know what policy and coverage you need to buy.
Recommended: How Much Is Homeowners Insurance?
Types of Water Damage Typically Covered
It’s a good idea to read your personal policy carefully to understand exactly what it does and does not cover. In general, your policy may cover the following:
Sudden and Accidental Leaks
Does condo insurance cover water leaks? Yes, but personal policies typically cover damage only from a sudden or accidental event. For instance, if storm-driven rain enters your unit, your policy may pay for repairs to the damage.
Burst Pipes
Similarly, if a pipe bursts inside your wall and damages permanent fixtures, such as flooring, interior walls, cabinetry, sinks, and tiling, you may be covered. Depending on your policy, damage to other property, such as furniture or electronics, may be covered as well.
Appliance Overflows
If an appliance malfunctions suddenly, your policy may cover the resulting water damage. For example, if the hose in a new washing machine or dishwasher suddenly fails, you would be covered.
Recommended: What Is Condo Insurance?
When Water Damage Is Not Covered
There are a number of instances when water damage is not covered.
In general, damage resulting from normal wear and tear and poor maintenance isn’t covered. For example, if you have very old appliances and a hose inside one of them wears out—a preventable event—ensuing damage may not be covered. Another example could be corroded pipes or failing grout in a tiled shower.
Keep your eyes out for places where pipes, hoses, appliances, and seals might be wearing out and replace them before a problem occurs.
How Flood Insurance Differs From Condo Insurance
Condo insurance focuses on the structure of your building and damage related to that structure. Flood insurance, on the other hand, covers damage from rising waters due to things like major storms, extremely high tides, or tsunamis.
For condos, flood insurance may differ from insurance for more traditional detached homes. Typically, it only covers the unit’s interior instead of shared spaces or exterior walls. Your building will insure those spaces. Things like drywall, cabinetry, flooring, and furniture inside your home should be covered. Policies will vary depending on factors such as where your home is located and whether it’s in a flood zone.
How to Prevent Water Damage Claims
Preventing water damage claims typically involves proactive maintenance. Regularly inspect appliances for hoses that look damaged or weak and may fail.
If you live in a cold climate, you’ll need to keep your home above 50 degrees to avoid pipes freezing. Insulate pipes—especially in unheated parts of your house, such as crawl spaces— to protect them from swings in temperature that may damage them and cause leaks.
Recommended: What’s the Difference Between Homeowners Insurance and Title Insurance?
The Takeaway
Condo insurance and other homeowners insurance cover you when the unexpected happens. Condo insurance covers water damage in your home from accidental events. You are not responsible for things that happen in common areas. However, it is up to you to maintain things like appliance hoses and pipes inside your home. Condo insurance doesn’t cover leaks caused by normal wear and tear, so it’s important to get ahead of that.
If you live in a flood-prone area, you’ll likely need a separate policy to protect you from rising flood waters. Before purchasing any policy, be sure to read the fine print so you know whether you’re getting the protection you need.
When you’re ready to shop for homeowners insurance, SoFi can help. Our online homeowners insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
SoFi brings you real rates, with no bait and switch.
FAQ
Does condo insurance cover water damage from a neighbor’s unit?
Your condo insurance likely covers damage from a leak in your neighbor’s home. It’s also possible that the damage is covered by the building’s master policy or your neighbor’s policy.
Are slow leaks or long-term water damage ever covered?
Condo insurance is designed for sudden or accidental water damage, so slow leaks or long-term water damage likely aren’t covered by your policy.
Does condo insurance pay for mold caused by water damage?
If your mold issue is a direct result of a sudden or accidental leak, your condo insurance may cover remediation. However, if the mold is caused by a slow, preventable leak, it is unlikely resulting damage will be covered.
Who pays for damage inside the walls of a condo?
Who pays for damage inside the walls of a condo ultimately comes down to a variety of factors, such as where the damage is located. Your building’s insurance likely covered structural elements like building plumbing, whereas you may be on the hook for things such as fixtures.
Are sewer backups covered under a standard condo policy?
Sewer backups usually are not covered by a standard condo policy. You may need to purchase additional coverage.
Photo credit: iStock/gorodenkoff
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