Water damage in a condo: what to do, who is responsible and what does your insurance cover?

Why is water damage frequent in condos?

Water damage is among the most frequent losses in co-ownership, particularly because several units share the same building. A washing machine with a failing water intake hose, a broken pipe, a defective dishwasher or a water infiltration can quickly – and simultaneously – affect several units. The proximity between the co-owners ensures that an incident in one condo can have impacts beyond the unit where it occurs.

What does condo insurance cover for water damage?

Condo insurance is a shared responsibility: each co-owner must hold condo insurance for their private unit and the syndicate of co-owners must maintain insurance in force to cover the immovable and its common portions (the foundations, the structure, the roof, the corridors or the elevator, for example).

Condo owner’s insurance: what coverage is available?

• Public liability (mandatory)
  Home insurance for condominium owners covers public liability, namely damage that you might cause to another person if you were liable for a loss, such as a fire triggered by a deep fryer, for example.
• Specified perils (recommended)
  Condo insurance may also cover your goods against certain specified perils, such as fire, theft and vandalism. Everything found inside your condo — your personal belongings, your furniture, your household appliances, your sports equipment and your electronic devices, in particular —, thus is covered by this insurance.
• All risks (recommended)
  This is the most complete coverage, because it enhances the basic “Specified perils” coverage, while giving you access to the following additional coverage:
  • The improvements, namely the additional or renovations made to the standard unit since its construction, which do not appear in the description of the private portions (DPP) drafted by the syndicate of co-owners.
  • The additional living expenses, such as the cost for your rehousing in case of a covered loss.

• Additional coverage against water damage (optional)
  Three other endorsements may be purchased separately to cover the additional perils related to water coming from outside the immovable:
  • Groundwater and sewer water;
  • Water above ground;
  The Infoassurance organization offers an infographic to understand, at a glance,the potential coverage of water damage based on the different coverage available.

Who covers the insurance of the syndicate of co-owners?

The syndicate of co-owners must take all the necessary measures to ensure the conservation of the entire immovable, in the broad sense. The insurance thus covers:

• The immovable;
• The common areas;
• The common goods;
• The standard unit of each condo;
• The public liability of the syndicate and the directors, in particular.

In addition to maintaining the appropriate insurance against the usual risks, the syndic has other important responsibilities in this regard, particularly:

• Produce the description of the private portions (DPP) and make it available;
• Have the reconstruction cost of the immovable appraised so that the amount of insurance is sufficient;
• Take over the losses affecting the immovable;
• Create a self-insurance fund and replenish it after use.

What happens if water damage is caused by a neighbour?

It isn’t always easy to understand the the hidden mechanism behind compensation for a loss Is one of the co-owners responsible for the loss? The Autorité des marchés financiers (AMF) explains that several options may be available to the syndicate of co-owners. For example, if the syndicate chooses to claim from its insurer, two contingencies are possible:

What to do in case of water damage in a condo?

What to do about water damage? Immediately consult this five-step checklist to guide you through these trying times.

1. Limit the damage and cut the power as needed;
2. Inform the insurers (of the co-owner and the syndicate of co-owners);
3. Discuss the claim with the adjuster;
4. Proceed with the repairs once approval is obtained from the insurer;
5. Assume the deductible and payment of the work with the insurer’s compensation

How to warn of water damage in a condo?

Technology — smart water detectors and connected water shutoff valves — now can detect and stop water leaks before they cause costly damage. Several other tips can also help efficiently prevent water damage in a condo:

• Close the water inlet and drain the pipes when you leave home for a few days;
• Avoid operating your household appliances, such as the washing machine or the dishwasher, during your absence;
• Leave the heating at a certain maximum temperature to prevent the pipes from freezing when you leave home in winter.

Nevertheless, it is essential to be well insured before a misfortune occurs. Home insurance for condominium owners offers you the possibility of obtaining public liability coverage and choosing the coverage best suited to your situation.

FAQ - Water damage in a condo

What to do in case of water damage in a condo?
In case of water damage in a condo, the first step is to act quickly to limit the damage. If possible, shut off the water source (for example, by closing a valve or the water inlet), protect your goods and remove objects that could be damaged. Also take picture or videos of the damage and communicate quickly with your insurer to find out the next steps. The syndicate of co-owners must also be notified.

What do I do if water damage comes from the neighbour’s condo?
If water damage coming from another condo causes damage to your unit, it is important to act quickly: document the damage, notify your insurer and immediately inform the syndicate of co-owners. Even if water comes from the neighbouring dwelling, your own home insurance can intervene for the damage suffered in your unit. The insurers then will determine the responsibilities and the possible recourses depending on the circumstances.

What happens if I’m responsible for water damage in a condo?
As a co-owner, you could be held liable for the damage caused to your unit, to other dwellings or to certain common portions of the immovable, depending on the circumstances. This situation reminds us of the importance of holding enough public liability coverage to deal with the financial consequences of a loss.

If the syndicate or co-owners of another co-owner claims a sum of money against you following water damage, notify your insurer quickly. In particular, could your public liability insurance cover damage for which you could be held liable, depending on the coverage specified in your contract.