Due to condos having common walls, water damage can seep into other units sing water losses to occur. 85% of building property (e.g., cabinetry, drywall, flooring, etc.) Condo claims are due to water losses*. Up to 35% of water Condo claims are due to burst pipes, non-weather related *. 30% of water Condo claims are due to overflows of sink.. Water Backup - Typical condo insurance does not cover water damage resulting from drain or sewer backups. Water backup caused by HOA's neglect is covered by HOA's master policy. If the cause is not clear or if it the damage emanates from a drain back up in your condo, you'll be responsible for the costs unless you carry supplementary.

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Determining who pays. In a condo, you share walls — and sometimes plumbing lines — with your neighbors, which makes handling water damage different than for those who live in a house. 1 There are several variables that may determine who ends up paying for water damage, and the ruling on that can vary from state to state. 2 A great place to.. By Allstate. Last updated: August 2022. According to the Insurance Information Institute (III), homeowners policies, like condo insurance, may help cover water damage caused by burst pipes, rain and ice dams. It may not cover sewer or drain backups or flooding, which would require additional coverages or policies.