Does condo insurance cover water damage?
Staying in a condo is special; it is like being in a building that is like a city, albeit with certain obligations, which are like those of a homeowner. This convenience has its insurance controls particularly that regarding water damage. Most condo owners in Atlanta, Georgia need to know their condo insurance policy and the extent to which it protects them against water damage.
In this guide, I will discuss everything that you need to know regarding Georgia’s Condominium Act, normal condo insurance and how the policies regarding water damage work. By the end, you’ll know how to protect your property and avoid exposure to costly gaps in coverage.
What is Condo Insurance and why do we need it?
HO-6 insurance also commonly referred to as condo insurance is for condo unit owners. HOA insurance is different because it does not cover damages that are within an owner’s unit like a condo association master policy usually does and damages to common areas. The coop insurance then covers unit’s something the master policy doesn’t; damages and liabilities which affect the owner of the unit investment.
What is Condo Association Insurance?
A standard condo insurance policy generally includes:
- Personal Property Coverage
Covers your possessions (furniture, appliances etc) against hazards such as fire, theft or flood.
- Liability Coverage
Protects you from legal costs in case someone sustains an injury in your condo.
- Loss of Use Coverage
Reimburse for expenses of living like lodging and food when the premises is uninhabitable from a periled event.
- Dwelling Coverage
Covers the condo structure (walls, floors, fixtures) in your unit against threats which are not catered for by the condo management.
Knowledge of these coverage areas assist in getting the best protection for your property against damages especially from water which in most cases is very expensive to deal with.
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Causative Agents of Water Damage to Atlanta Condos
Condo owners can experience water damages in their homes more often than they would think. Here are the common causes:
Burst Plumbing, Leaking Pipes
Occasionally arising from old pipelines in Atlanta, broken pipes may compromise common walls with several units below.
Appliance Failures
Washing machines and dishwashers, as well as water heaters, are some of the most dangerous appliances in regards to water damage.
Roof Leaks and Storm Damage
He said in Atlanta for instance, many roofs develop faults especially during the rainy season which leads to development of leaks that may affect the units on the top floor.
HVAC System Issues
Your HVAC systems are also prone to develop some complications that see water accumulating in your unit if not well maintained.
External Sources of Flooding
Flooding is likely to occur in basements or low level units because of improper draining when there are severe storms.
Effects of Water Damage in Condos
- Property Damage
Walls and floors may dilapidate and ceilings collapsed.
- Mold Growth
Failure to resolve water damage can cause mold formation which is very expensive to resolve.
- Conflict with Neighbors
Dissemination of water damage affects the next individual apartments causing arguments on whether the owner or the tenant is supposed to meet the expenses of repair.
Insurance Requirement of Georgia Condominium and Operation Through Georgia Condominium Act
Who Is Labelled by the Georgia Condominium Act?
The laws guiding condominiums in Georgia were provided by Georgia Condominium Act to explain the liability of the association and individual unit owners on insurance. It provides basic standard of insurance that has to be provided by condominium association.
Insurance Requirements for Condo Association
A condo association is required to obtain master insurance that will cover parts of the properties that are jointly owned, such as roofs, elevators, exterior walls and so on. Nevertheless, this policy does not extend to the internal spaces of each unit.
SOME OF THE DUTIES OF UNIT OWNERS WITH REFERENCE TO INSURANCE
The primary homeowner is obliged to protect the inside of the unit including the walls, the floors, cupboards and appliances which comes under the condo insurance policy.
Is Water Damage Covered with Condo Insurance?
What is not covered by Standard Condo Insurance – Water Damage
Indeed, condo insurance does provide coverage for any water damages, although the details are in the policy’s terms and conditions. Common water damage scenarios covered include:
Burst pipes
Spills, for example from an overflowing washing machine.
Water penetration from broken louvers or broken sheets of glazing
What’s Usually NOT Covered?
Flood Damage: This is usually excluded in condo insurance and needs the homeowner to purchase a different policy: flood insurance.
Neglect: The organisation’s insurance claims can be denied if the water damage is due to poor maintenance such as a burst pipe due to neglect.
In case you might find gaps in your coverage, consider endorsements for instance the water backup endorsement that deals with sewer or drain backup not covered in the normal policies.
Personal vs. Group Insurance
It is crucial to distinguish between own condo insurance policy and master policy of the condo association in order to avoid overinsuring and falling short.
Master Policy Coverage
Normally only the exterior and the shared areas of the building are covered.
The schedule of coverage under HO-6 individual policy are as follows:
This is the part that covers your unit, as well as all of your contents.
Why Coordination Matters
Certainly, do not make the mistake in thinking that water damage resulting from a leaky roof and seepage through the ceiling coursing through the walls and soaking both your unit and the building is covered under both policies. Closely read through the master policy of your condo association to know what risks are covered and which are not.
Effects of Recent Legislation on Water Flood Insurance
House Bill 1070
This recent legislation in Georgia addresses condo associations in particular and aims to facilitate the disclosure of the coverage of water damage insurance, so that the information is transferred to unit owners more clearly regarding the limits of the mentioned insurance policies. House Bill 1070.
Condo and Co-op’s Insurance And How To Identify Your Required Coverage
Evaluate Current Coverage
Learn whether your policy covers basic situations associated with water damage. Be careful about the exclusions” that may put you at risk.
Call a Professional Insurance Agent
Meet with an insurance professional knowledgeable in the condo insurance niche in Atlanta in order to get a policy best suited the condo’s needs.
Here are a few maintenance tips for condo owners:
Repair any dripping faucets as well as any dripping pipes without delay.
It is important to also check the various appliances for leak or mechanical failure frequently.
Wear protective clothing when it is raining to avoid getting wet When there is rain inform the occupants of the house to close all windows and doors so that there will be no water seepage.
If you have a history of leaks you may want to have your building fitted with water detecting devices.
How and What to do If You Have Water Damage
Go Straight to the Source Now
If you can shut off the water flow, then do it, and inform both the management of your condo and the insurance company.
Document the Damage
Capture a few pictures or even record videos of the destroyed area and the property that was damaged.
Prevent Further Damage
About small halls and aisles, you should use towels or buckets in order to stop the water draining, and about movable property, it should be removed to the upper floors.
File an Insurance Claim
File a claim with your insurance company and then proceed with what the insurance provides you with.
Does condo insurance cover water damage: 5 Common Misconceptions
Myth 1: All is owned and managed by the Condo Association
Wrong. The master policy owned by the condo association is usually responsible for the exterior, and not the interior of each unit.
Myth 2: Flood Water Damage is Covered
Flood damage often means that you need to have another insurance policy – flood insurance.
Myth 3: Different Levels of Water Damage Are Equally Harmful
Water damage coverage depends on the cause of the damage. Always consult your policy.
Conclusion
Damage to a condo through water seems to be expensive and difficult to deal with but having the right insurance cover will go along way in helping you. Consulting with an insurance agent to determine the Condominium Act of Georgia and working with your condo association master policy to make sure your coverage is adequate.
Atlanta condo owners need to act now and make sure you have reviewed and have the right condo insurance for protection against water damage. Saving for a rainy day is fine, but peace of mind is just a policy away.
