Does condo insurance cover water damage?

It typically covers water damage from internal sources like burst pipes, but coverage for external flooding requires separate flood insurance.

Condo insurance usually covers water damage that originates from internal sources. For instance, if a pipe bursts inside your unit or an appliance like a dishwasher or washing machine leaks, your policy is likely to cover the damage, including potential repairs to your floors or walls. However, it’s important to note that this type of insurance generally does not cover water damage caused by external flooding. For floods due to heavy rains or rising water from a nearby river or ocean, you would need separate flood insurance as standard condo insurance policies typically exclude these events.

Imagine you come home one day to find your kitchen floor is soaked because the dishwasher malfunctioned and flooded the area. In this case, your condo insurance would help cover the cost to repair the flooring and any other damage inside your unit caused by the leaking dishwasher. However, if a storm caused local flooding that immersed your ground-level condo causing water damage, unless you have specific flood insurance, you might have to cover the costs out-of-pocket.

To make sure you're fully protected, review your condo insurance policy closely to understand what types of water damage are covered. Consider purchasing separate flood insurance if you live in an area that's prone to flooding or severe weather. It's a good idea to speak with your insurance agent to ensure you have complete coverage based on your location's risks and your personal needs. Always be proactive about maintaining your appliances and plumbing to minimize the chances of internal water damage.