For current and prospective condo owners, the appeal of condo living often lies in its convenience, built-in amenities, community living and reduced maintenance compared to a detached home. But one major risk that comes with condo ownership is water damage. Whether from burst pipes, a neighbour’s leaking appliances or heavy rainfall, water-related incidents can be both costly and disruptive if you don’t have the proper coverage in place.
Do you need extra water coverage with your condo insurance?
Optional water coverage should be considered by all condo unit owners, even those living on higher floors. It helps fill coverage gaps, especially where the condo building’s Standard Unit By-law sets restrictions on what’s protected. There is also added risk if water damage in your unit causes damage to lower-level or adjacent units.
This coverage is especially important if you:
- Live on a lower floor or in a low-rise building
- Have a storage locker located at or below ground level
- Could be affected if your building is deemed unfit for occupancy due to a sewer back-up or overland flood event
- Have made upgrades or improvements in your unit that may not be covered by the condo corporation’s policy
What does condo water insurance really cover?
An optional water endorsement protects you against sudden and accidental water damage, including:
- Sewer back-up
- Sump pump failure
- Ground and surface water entering your unit or below-ground storage locker (including snowmelt or heavy rainfall)
- Overland flooding from a body of fresh water
Water damage in condos: Who pays?
If water damage starts in your condo unit, you’re usually responsible for fixing it. This includes any upgrades or improvements you’ve made.
It’s important to review your condo corporation’s documents with your insurance broker to make sure you have the right coverage.
Your condo corporation’s master policy usually covers water damage to shared areas of the building (like hallways, lobbies, or the roof), if the damage is above the deductible. A Standard Unit By-law explains what’s considered a “standard unit” (the basic finishes that come with your condo). Anything beyond that such as upgrades are your responsibility. Keep in mind, most condo master policies do not cover sewer back-up or flooding from heavy rain.
Additionally even if damage is covered by the master policy, the condo board may choose not to file a claim. Instead, they could pass the costs on to unit owners through a special assessment (an extra fee).
What options are available for coverage?
Unica’s WATERtight™ endorsement gives you a simple add-on solution for water damage coverage. This all-in-one water insurance package offers peace of mind with additional coverage for Prohibited Access, Mass Evacuation, and Additional Living Expenses due to flooding.
Discover how WATERtight can protect your condo.
