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Condo Insurance & Water Damage: Everything You Need To Know

June 25, 2025

View of balconies of a condo block

Water damage is one of the most common (and costly) issues condo owners face. From burst pipes to overflowing toilets, water can cause significant damage in minutes. In addition, the cleanup isn’t always as simple as drying things out, especially if you want to prevent mold growth. 

If you're living in a condo, you might wonder: Does condo insurance cover water damage to other units? And what happens if a leak from your unit ruins your neighbor's floor or ceiling? Here’s what you need to know about condo water damage, what your insurance covers, and the smart way to respond to water damage quickly.

Understanding Condo Insurance vs. the HOA Master Policy

Unlike a single-family home, where you're responsible for the entire structure, condo ownership is limited to your unit. The walls, roof, and common plumbing connected to all units fall under a shared responsibility. This is why insurance coverage in condos can be confusing.

The HOA Master Policy

Your condominium association likely has a master insurance policy that covers common areas, the roof, and shared systems like HVAC and plumbing. However, this depends on how your HOA is structured.

When it comes to your unit, there are two main types of master policies:

  • Bare Walls Coverage: Covers the building structure up to the bare walls of your unit. In case of damage covered by your HOA policy, it wouldn’t include flooring, wall coverings, cabinets, fixtures, or personal belongings.
  • All-In Coverage: Includes original fixtures inside your unit. It doesn’t include renovations, remodels, or personal belongings.

Understanding your HOA's policy helps determine where their responsibility ends and yours begins.

What Does Your Condo Insurance Typically Cover?

Your personal condo insurance policy — also known as an HO-6 policy — fills in the gaps that the master policy doesn't cover. It usually includes:

  • Dwelling Coverage (Interior): The inside of your unit, including walls, flooring, fixtures, and built-in appliances, if the master policy doesn’t.
  • Personal Property: Your belongings, including furniture, electronics, and clothing.
  • Loss of Use: Pays for temporary living expenses if your unit is uninhabitable due to water damage.
  • Liability Protection: Covers the damage if water from your unit causes damage to someone else’s property.

Every policy is different and has varying coverage limits and add-ons. Review your policy and its exclusions carefully.

Common Water Damage Scenarios in Condos

Determining what your condo insurance policy covers often depends on how the water damage occurred. There are generally two scenarios that can impact whose coverage applies:

Sudden and Accidental Water Leaks

These are unexpected incidents that you have little to no control over, such as:

  • Burst pipes under your sink
  • Your washing machine hose breaks
  • Your dishwasher overflows due to a mechanical fault

These cases are usually covered by insurance policies. Your insurance company should pay for repairs and replacement. If the leak damages another unit, your liability coverage may apply.

Gradual or Long-Term Damage

This includes damage caused by neglect, wear and tear, or poor maintenance. These are often not covered by your insurance. Some examples include:

  • Mold from a long-standing roof leak
  • A slow drip from a toilet you never repaired
  • Damp walls due to failing caulking around a tub

Insurers may deny your claim entirely, especially if they believe the issue could’ve been prevented with regular inspections and maintenance. 

Water Damage and Responsibility Between Units

One of the trickiest parts of condo water damage is determining who’s responsible when multiple units are affected. For example, if a pipe bursts in your kitchen and floods your neighbor’s living room, who pays?

In general, if it was a sudden and unforeseen event, your neighbor's insurance might cover their own damage. However, if there was negligence on your part, your liability coverage may be used to pay for their repairs.

This is why it’s essential to:

  • Act quickly at the first sign of water damage.
  • Keep maintenance records.
  • Know the details of your and your HOA’s insurance coverage.

Does Condo Insurance Cover Water Leaks?

As a general rule:

  • Yes, if the leak is sudden, accidental, and originates inside your unit.
  • No, if the leak is long-term or due to poor maintenance.

It’s also important to know that most policies won’t cover:

  • The cost of replacing the broken appliance or pipe itself, only the damage it caused
  • Water backup from sewers or drains unless you have a specific endorsement

Adding optional coverages like water backup or mold protection can be worthwhile in areas prone to leaks or flooding.

What To Do If You Experience Condo Water Damage

If you’re dealing with water damage in your condo, here’s what to do:

  1. Stop the Source: If it’s a plumbing issue, shut off water at the main valve.
  2. Document Everything: Take photos and videos before cleaning up. This is necessary for your insurance claims. 
  3. Call Your Insurance Company: Report the claim as soon as you can. They will guide you through filing a claim.
  4. Notify the HOA: If shared plumbing or structure is involved, notify the HOA immediately. 
  5. Contact Restoration 1 of Cary: Our professional restoration technicians can provide 24/7 emergency services to assess the problem and take steps to address it.

The faster you act, the more damage you can prevent. Your insurance claim may be affected by how soon you take steps to mitigate the damage. 

(847) 613-1520

Stay Protected

Water damage in condos can be stressful, but being informed and proactive makes all the difference. Knowing what your policy covers, understanding your HOA’s role, and having a trusted restoration partner on speed dial can help you act fast when every second counts.

If you’re dealing with condo water damage, contact Restoration 1 of Cary. Call us for 24/7 professional property restoration solutions you can trust. 

(847) 613-1520
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