Is your situation covered?
| Scenario | Typical verdict | Why |
|---|---|---|
| Burst pipe inside your unit's walls | Usually covered | HO-6 pays for interior damage; master policy usually covers the pipe if it's inside common walls. |
| Leak from the unit above damages your ceiling | Usually covered | Your HO-6 pays first, then subrogates against the upstairs owner's policy. |
| Sewer backup into your unit | Depends on wording | Standard HO-6 excludes it — needs a water/sewer backup endorsement ($40–$80/yr). |
| Flood from a storm or overflowing river | Usually not | Requires a separate NFIP or private flood policy — condo unit coverage is available. |
| Slow leak you ignored for months | Usually not | 'Sudden and accidental' is the trigger; long-term seepage is excluded. |
| HOA master policy has a $10,000 deductible | Depends on wording | Loss assessment coverage on your HO-6 can pay your share — check the limit. |
General industry patterns. Your actual cover lives in your policy wording — PolicyPal reads it for you.
The short answer
An HO-6 (condo owner) policy covers water damage to everything inside your unit — flooring, cabinets, drywall from studs in, personal belongings, and often 'betterments and improvements' the original developer didn't install. The HOA's master policy covers the building structure and common areas. Which one pays depends on where the water came from and what your master policy is written as (bare walls, single entity, or all-in).
Master policy vs your HO-6 — who pays for what
The single biggest factor is the type of master policy your association carries. Ask your HOA for a copy of the declarations page and look for these three types:
- Bare walls — master covers structure only; your HO-6 covers everything from the drywall in, including original fixtures and appliances.
- Single entity — master covers original fixtures and finishes; your HO-6 covers upgrades and personal property.
- All-in (all-inclusive) — master covers the unit as built including upgrades; your HO-6 covers personal property and loss assessment.
Loss assessment — the coverage most condo owners miss
When damage exceeds the master policy's limits or hits its deductible, the HOA can assess every unit owner for a share. Loss assessment coverage on your HO-6 pays your share up to the limit (default $1,000–$5,000, upgradeable to $50,000). If your master policy has a $10,000+ water damage deductible, you almost certainly want $25,000+ in loss assessment.
What to do in the first 48 hours
Move fast — insurers reject long-standing damage. Photograph everything before you clean up, stop the source (shut-off valve), and open claims with both your HO-6 carrier and the HOA property manager the same day. If the leak came from another unit, the upstairs owner's HO-6 will eventually reimburse yours through subrogation, but your policy pays you first.
- Photograph the source, the damage, and the water line on walls before anything dries.
- Notify the HOA in writing (email counts) within 24 hours — most bylaws require it.
- Keep every receipt for emergency mitigation — a plumber, water extraction, dehumidifiers.
- Don't sign a repair contract that assigns your insurance rights (AOB) without reading it.
- Upload the master policy declarations and your HO-6 to PolicyPal — we tell you which one to file against first.
Frequently asked
- Does condo insurance cover a leak from the unit above me?
- Yes. Your HO-6 pays for damage to your unit and belongings. Your insurer then pursues the upstairs owner's insurance for reimbursement (subrogation) — you don't have to chase them yourself.
- Is flood damage covered by condo insurance?
- No. Rising water from storms, rivers, or heavy rain requires a separate NFIP or private flood policy. Condo unit flood coverage exists and is cheap in low-risk zones — often under $500/year.
- What if the HOA blames me for a leak that damaged another unit?
- Your HO-6 personal liability section covers legal defense and damages if you're found negligent (e.g. an unattended overflowing tub). Typical limits start at $100,000 — bump to $300,000+ if you own upgrades or have assets.
- Do I need water backup coverage on my HO-6?
- Standard HO-6 excludes sewer and drain backup. Add the endorsement for $40–$80/year — a common source of interior condo damage and one insurers deny without it.
- How much loss assessment coverage should I carry?
- Look at your master policy's water damage deductible. If it's $10,000, carry at least $10,000 in loss assessment. Bumping from $1,000 default to $50,000 usually adds under $30/year.
Your policy is the only source of truth
Stop guessing. Check your actual policy.
Generic answers don't pay claims. PolicyPal reads your policy wording in seconds and tells you, in one sentence, whether you're covered.