Condo Water Damage in Massachusetts: Who Pays for What Between the Unit Owner and the Association

A leak in a condo turns into two questions fast: what is covered, and whose policy covers it. The answer is in the condo documents, and most owners have never read that page. Here is how it usually breaks down around Quincy and Boston.

Two policies, one leak

The association carries a master policy on the building. You carry an HO-6 policy on your unit. Where one ends and the other begins is set by the condo documents and the master policy type, and it is different from building to building.

The three master policy types

• Bare walls. The master policy covers the structure only. Your flooring, drywall, cabinets, fixtures, and everything inside the unit are on your HO-6. This is common in older converted buildings.
• Single entity (original specifications). The master policy covers the unit as it was originally built, including original flooring, cabinets, and fixtures. Upgrades you made are yours.
• All-in. The master policy covers the unit including improvements. Your HO-6 covers contents and the master policy deductible.

The deductible is the part that surprises people

Master policy deductibles in Massachusetts are often $10,000 to $25,000 or more. Many associations pass that deductible to the unit owner whose unit had the loss, or split it among affected units. Your HO-6 may have "loss assessment" coverage for this. Check the amount. Five thousand dollars of loss assessment coverage against a $25,000 deductible leaves a gap.

When the water came from another unit

If the unit above you leaked, your claim still usually starts with your own policy or the master policy, and the insurers sort out who was responsible afterward. Waiting for the upstairs owner's insurance to pay before starting repairs is how a wet floor becomes a mold job. Start the drying and the claim the same day.

What we do on a condo claim

• Ask for the condo documents and the master policy declarations page on the first visit.
• Write the scope so the association's items and the owner's items are separated, which saves weeks of back and forth.
• Provide the property manager and both adjusters the same photos, readings, and schedule.
• Rebuild the unit with one crew once the scope is approved.

Most of the delay on condo claims is not the repair. It is the three parties figuring out who is paying. Getting the documents on day one shortens that part.