Does Condo Insurance Cover Water Damages?

Need to know what your condo insurance covers and what’s not? Well, that’s the right place to get your answers. There is one question roaming on the internet about condo insurance: “Are water damages covered in condo homeowner insurance?” Here is the clear and crisp answer: Yes, condo insurance covers water damage.

The tricky thing is, which kinds of damages are covered and which are not. This blog will cover the details of damages and how you can claim these damages from the insurance company.

Covered Water Damages in Standard Insurance

HO-6 policy covers all sudden and accidental damages. It quite largely depends on the source of water as well. Majorly, HO-6 policy covers:

• Burst pipes: Damage caused by pipes that suddenly break, especially from freezing. These sudden bursts can result in ceiling, wall and structural damage. 
• Appliance malfunctions: Leaks from washing machines, dishwashers, or water heaters. These leaks can result in cabinet damage and floor damage. 
• Roof leaks: Damage from rain entering through a sudden roof leak, like a tree falling on a roof, a hailstorm, and high wind.
• Accidental plumbing leaks: Unexpected leaks from plumbing fixtures. For instance, sink and toilet overflow and drainage cause leakage to other areas of the condo. 
• Water damage from extinguishing a fire: Damage caused by water used by firefighters to suppress a blaze. This includes water sprayed directly on the fire, as well as runoff that can soak through walls and floors.

It is essential to understand that no deliberate damage can be claimed by an insurance company. Proper maintenance and damages due to one’s own negligence are only the insurer’s responsibility. 

Water Damages Not Covered in Standard Condo Insurance

If the damage isn’t accidental and sudden, it won’t be covered by condo insurance. Here is a list of damages that aren’t covered under a standard condo insurance policy:

• Gradual Damages: Insurance companies don’t compensate for damages that happen over a period of time. For example, slow leaks from pipes, seepage through foundation cracks, and rotting wood from long-term exposure to moisture.
• Flood Damage: Flood damages require dedicated homeowners flood insurance. You can get it from the NIFP (National Flood Insurance Program). For cases like river overflow, storm surges, and heavy rain causing floods, condo insurance doesn’t cover them.
• Negligence: If the water damage results from your carelessness or failure to maintain, the insurance company may deny your claim. For instance, ignoring a known leak or failing to winterize pipes properly.
• Sewer Backups: Sewer backups frequently call for an extra rider or endorsement to your policy, even though some policies may only provide limited coverage.

Final Thoughts:

In essence, standard insurance aims to protect you from unexpected water damage, but it generally doesn’t cover preventable or gradual damage. It is essential to properly maintain your property and look for fixtures every now and then. Minor leakage can turn into a massive disaster due to negligence. Furthermore, if you are looking for a reliable broker agency to help you find the right insurance provider for your needs, you can contact Smart Apple. 

FAQ Zone:

What constitutes unexpected and unintentional water damage?

Generally, unexpected damages from burst pipes, roof leaks and appliances malfunctioning are covered. 

Is my water damage covered by condo insurance?

Sudden water damages are usually covered in condo insurance policies. However, most of the insurance policies don’t entertain gradual damages, wear and tear, and sewer backups.

Are sure pipes excluded from coverage?

Older pipe materials, like polybutylene, might be problematic due to known failure rates. Negligence in maintaining pipes could also lead to claim denial.

Does insurance cover mould from water damage?

If the cause of mould is covered by water damage, then it will be covered in your insurance policy.

Am I liable for my neighbour’s damage, and is it covered?

It depends on the cause of damage. For instance, if the origin of damage is from your condo, the insurance company will compensate the liability claims.

How often should I review my water damage coverage in condo insurance?

Generally, it is recommended to check and review your water damage coverage annual. Furthermore, every time you upgrade your lifestyle and condo, you must update the policy as well. 

What is the difference between named perils and all-risk for water damage?

Named perils only cover listed water damages to your condo. On the other hand, the risk for water damage covers all water-related damages except the listed one below. 

Will plumbing upgrades lower my premiums?

It depends on your insurance provider. There are high chances that upgrading your plumbing can lower your premium but there is no guarantee. It’s better to communicate with your insurance provider and request a lower premium.