Does Condo Insurance Cover Water Damage?

Do you know what Florida condo insurance covers? Condos are extremely popular with millions of people choosing to live in them. Floridians love condos because they require less maintenance than a traditional house and offer lots of amenities. Condominiums also offer a sense of community, and many of them have excellent security features. However, it’s important not to skimp on condo insurance. It’s important to get a policy that you can afford and that covers everything you need it to cover, like water damage. Let’s explore the different types of condo insurance and if the policies cover any types of water damage.

What Is Condo Insurance?

Condo insurance is similar to homeowners insurance, but it is written for condo properties and the specific risks condo owners face. This is because condos are a unique type of property where some of the spaces are owned by individuals, couples and families, and other spaces are considered public use, meaning they’re available to all the residents.

The condo owners are responsible for everything inside their unit’s “exterior” walls. If an appliance breaks or the carpet needs to be replaced, the condo owner must handle those maintenance issues. Anything outside of the unit owner’s walls is either the responsibility of another condo owner or the condo’s HOA. Therefore, condo owner insurance is designed to financially protect the condo owner’s property.

Coverages that are typically included in a condo owners insurance policy include:

  • Personal Property Coverage – This covers the unit owner’s belongings.
  • Personal Liability Coverage – The liability coverage covers claims by third parties if they are injured or their property is damaged while visiting the unit.
  • Loss of Use Coverage – If the unit cannot be inhabited due to damage from a covered event, this coverage helps pay any additional living expenses.
  • Medical Payments – If a visitor to the unit is injured and needs medical care, this coverage helps pay for that medical care.

Does Condo Owners Insurance Cover Water Damage?

The short answer is that it depends on how the water damage was created. There are several different ways that a condo could develop water damage.

Flooding

The first type of water damage that most people think of is flooding. Flooding occurs when water overflows onto land from the ocean or a river, stream or lake. Condo insurance does not cover flooding. Instead, the condo owner would need to purchase flood insurance.

Burst Pipe

Burst pipes occur when the walls of a potable water pipe give way. When this happens, a hole is created in the pipe that allows water to escape. Some condo insurance policies do cover water damage that is caused by burst pipes.

Sewer Backups

Water damage can also be caused by sewer or drain pipe backups. This most commonly occurs when a clog stops the water from flowing down the drain pipe or sewer line. Standard condo insurance doesn’t typically cover sewer backups. However, additional coverage can be purchased.

Roof Leaks

Maintaining the roof of the condo building is the condo association’s responsibility. If a storm causes a hole in the roof and water leaks into a unit, it could be the condo HOA’s responsibility. Unit owners should talk to their HOA about certain scenarios and who would be responsible for the cost of the repairs.

Water From Other Units

If water leaks into an owner’s unit from another unit, the subsequent repairs may be the responsibility of the unit owner with the water leak.

Water from Common Areas

If water leaks into units from the common areas, it’s usually the responsibility of the condo HOA to repair the leak and any subsequent damage.

If a unit owner ever has any questions about who is responsible for what types of damage, they should read their bylaws and ask their HOA questions.

Condo HOAs must have a condo association insurance policy, which is sometimes referred to as a master condo insurance policy. This insurance helps pay for damage to the condo’s public spaces and amenities if they were to become damaged by a covered event.

  • Liability Insurance – Condo HOA insurance helps pay for any injuries that happen in the common areas. This coverage may apply to guests and visitors in the building as well as unit owners.
  • Coverage for Building Damage – If the building’s exterior or envelope is damaged by a covered event, this insurance coverage helps pay for the repairs.
  • Common Area Coverage – This portion of the policy helps pay for damage to the common areas, if that damage were to be caused by a covered event. Common areas can include pools, hot tubs, tennis courts, trails, parking lots and parking garages.

Condo Insurance from Fearnow in Florida

If you own a condo in Florida and need condo insurance, we can help you find an affordable policy. We have access to numerous condo insurance policies from Progressive, Allstate and Liberty Mutual as well as other carriers, and since we can quickly scan through numerous policies, we can find the policy that best meets your needs while staying within your budget.

To get a quote for condo insurance, give us a call at 813-689-8878.