When signing on to purchase a condo, owners accept a level of responsibility not dissimilar to ownership of a traditional house. Owners are responsible for purchasing insurance to cover damages to their unit that fall outside of the purview of the Condo Owners Association. But with individual units being connected to the shared building, it can be hard to determine what owners are responsible for and what the building’s owner(s) must repair.
In this article, we will go over how water (intense rains and floods) can impact condo units and when it is the responsibility of residents or the building owner to ensure repairs are made.
First, it is important to know the difference between water and flood insurance.
Water insurance will cover all damage from severe storms and debris that impacts the building and causes damage. Water damage insurance will also cover damage caused by faulty irrigations systems. Flood insurance will cover damage from rising water levels from outside rain. Rain damage will not qualify under a flood insurance policy, unless two or more acres of adjacent property have sustained rising water damage.
Who is responsible for providing coverage?
Providing coverage from water and storm damage will usually be the responsibility of the building owner. Homeowners can purchase additional insurance, but they should be sure to understand the building’s insurance policy before adding an unnecessary cost. It will be up to the unity owner to purchase their own flood coverage plan.
Are you required to obtain flood insurance?
We recommend you check your governing documents. If your bylaws or another document stipulates the HOA possess flood insurance at all times, then you will need to have flood insurance. If your association resides in a flood zone, your city, county, or state may also require you to keep up to date with your flood insurance policy.
If you live in a flood zone, obtaining flood insurance is highly recommended, and likely required. Depending on where your building is located, it may be impossible to secure loans for the property, particularly if you live in a flood plain.
If your unit is at high risk for flooding and you do not obtain the right type and amount of insurance, then you may be held financially and legally liable for any flood damage that occurs.
Water Damage Information
For a Condo building, water damage affecting the outside of the building and shared spaces will be the responsibility of the association/building owner. This kind of damage is often the result of storms or the general wear and tear of building infrastructure and amenities.
The owner of an individual unity will be responsible for covering any added utilities that they bring to the unit, like a new dishwasher or new flooring.
So water damage from in-unit utilities not explicitly covered by the building policy will be the responsibility of the owner, while building plumbing and common area irrigation would be the responsibility of the association.
Owners should take a look at the insurance policy held by the building/owners association before closing on a potential unit purchase.
If you have more questions about condo water damage and what kind of damage the association might cover, feel free to reach out to Kiwi Condo Management.
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