Does Condo Insurance Cover Water Leaks?

Water damage from shower pan leaks in condos are common occurrences. A leak can have effects that range from minor damage to total loss of property. In Florida, a homeowners’ policy typically covers water damage within the condo owner’s own unit: What happens when the leak happens upstairs in someone else’s unit?

In this blog, we answer this question, as well as a few others pertaining to shower leaks.

Who Is Responsible for a Water Leak in a Condo in Florida?

It depends on a few factors, primarily the cause of the leak and the condominium association’s insurance coverage. If the leak is due to the negligence or intentional act of the owner, the unit owner is legally responsible for the damage caused to other units. For example, if a unit owner leaves their bathtub running and it overflows, causing a flood, the owner is liable for the ensuing damage.

The condo association’s insurance policy is another major factor in determining responsibility. The Florida Condominium Act, Section 718.11(11)(f) states that:

Every property insurance policy issued or renewed on or after January 1, 2009, for the purpose of protecting the condominium must provide primary coverage for:

1. All portions of the condominium property as originally installed or replacement of like kind and quality, in accordance with the original plans and specifications.
2. All alterations or additions made to the condominium property or association property pursuant to s. 718.113(2).

Under an all-risk policy, a sudden and accidental event that isn’t listed as an exclusion counts as an “insured peril.” This means that for sudden and accidental leaks — such as, say, if a pipe breaks — the resulting water damage is usually the responsibility of the association. Leaks in a shower-pan also fall into the same category. For a more thorough discussion of Florida Statute 718, see this post.

It’s important to note that these facts run counter to the common misconception that, when water emanates from a condominium unit, that unit is automatically responsible for the damages to that unit, the common elements, and to other units. As we saw above, a unit owner is only responsible for damage to someone else’s property if the damage was caused by that owner’s carelessness (negligence), or by their intentional act.

Does Homeowners Insurance Cover a Water Leak From the Ceiling?

Typically, yes, condo homeowners insurance policies typically cover water leaks from the ceiling but with the caveat that it depends on the exact details of your policy. Usually, in the event of a shower pan leak causing water damage, the condo association would be responsible for repairing ceilings and any damaged drywall. The unit owners are responsible for their own personal property, including floor coverings, cabinets, and furniture. Make sure you carry your own insurance, and be certain to carefully review the details of your policy to understand your coverage and how you are protected.

Does Condo Insurance Cover Water Damage in Florida?

Yes, a condo owner’s individual HO6 policy generally covers water damage in Florida. As discussed above, it depends on the source of the leak as well as the particular insurance policies in place. According to IRMI, a good guideline is that if the water comes down, it’s likely covered; if it comes up, it likely isn’t covered. This means that water leaks from burst pipes or shower pans are often covered; sewage backups and floods are usually not covered without additional policy endorsements.

To thoroughly protect yourself in case of a water leak within your unit, it’s a good idea to carry property insurance liability coverage. Depending upon your condo association’s bylaws, water that escapes one unit and damages another unit or multiple units can result in massive potential liability and multiple lawsuits. What happens if water escaping your unit causes millions of dollars in damage to adjoining units? Consult with your insurance agent about implementing a higher liability limit for property damage, perhaps even in excess of your personal injury liability limits.

How To Make a Successful Water Leak Insurance Claim

The two most important factors in making a successful claim on your insurance are thorough documentation and timely communication with your insurance company. Follow these steps below:

1. Document the Damage

• Take photos and videos: Capture the extent of the damage, including the source of the leak, affected areas, and damaged belongings.
• Keep a detailed log: Note the date and time of the leak, any actions taken to stop the water, and the names of any professionals involved.
• Move undamaged belongings to a safe and dry location.

2. Contact Your Insurance Provider

• Report the claim promptly: The sooner you notify your insurer, the quicker you can initiate the claims process.
• Provide necessary details: Be prepared to share information about the date and time of the leak, its cause, and the extent of the damage.

3. Understand Your Coverage

• Review your policy: Familiarize yourself with the terms and conditions of your homeowners insurance, specifically regarding water damage coverage.
• Ask questions: If you’re unsure about anything, don’t hesitate to contact your insurance agent or company.

4. Cooperate with the Insurance Adjuster

• Be available: Schedule a time to meet with the adjuster to assess the damage. Make sure to shadow them as they assess the property to draw their attention to all the details.
• Provide documentation: Furnish any requested documents, such as receipts for repairs or estimates.
• Be honest: Provide accurate information about the incident and the extent of the damage.

5. Negotiate the Settlement

• Review the offer: Carefully examine the insurance company’s settlement offer.
• Negotiate if necessary: If you believe the offer is inadequate, discuss your concerns with the adjuster or your insurance agent.
• Consider legal advice: If you’re unable to reach a satisfactory agreement, consulting with an attorney may be helpful.

If you’ve documented your loss and been timely and thorough in communicating with your insurance company, and you still feel that your insurance company isn’t paying out on a legitimate claim, Merlin can help you get what you’re owed.

Further Resources on Insurance Coverage Law

Navigating the complexities of insurance claims can feel overwhelming. Whether you’re facing unpaid claims or simply filing for the first time, our eBooks equip you with the crucial information you need to advocate for yourself with confidence.

• Filing A Property Insurance Claim
• Insurance Company Response Time
• What To Do When You Have a Denied/Underpaid Claim
• Wildfire Claims
• Flood Claims Handbook
• More Information on Hurricane Deductible and Policy Limits

Why Merlin?

Are you fighting an insurance company that won’t pay up on claims? With nearly 40 years of practice and $2 billion in recovered claims, our team stands by your side to ensure you can face any insurance challenge with confidence. Contact us today for a consultation, or read more about how we’re your trusted advocate.