Flood Insurance for Condos: What’s Covered and What’s Not

Flood insurance for condos can be a bit complex due to the shared ownership structure of condominium buildings. Understanding what is covered and what is not can help condo owners obtain adequate protection.

What’s Covered

Flood insurance typically includes the following:

• Building coverage—The condo association typically holds a master flood insurance policy that covers the building’s structure and common areas. This includes the exterior walls, roof, foundation and shared amenities such as lobbies, elevators and pools. The policy can also cover permanent fixtures within individual units, such as cabinets, flooring and appliances.

• Personal property—Individual condo owners must purchase their own flood insurance policy to cover personal belongings inside their units. This can include furniture, electronics, clothing and other personal items. The policy may cover damage from external water sources such as heavy rains, storm surges and rising floodwaters.

What’s Not Covered

Flood insurance may not cover the following:

• Exterior structures—The master policy does not cover exterior structures that are not part of the main building, such as detached garages or sheds. These would require separate coverage.

• Personal property outside the unit—Items stored outside the unit, such as in a garage or storage unit, are typically not covered under the individual flood insurance policy.

• Additional living expenses—Flood insurance generally does not cover the cost of temporary housing if the condo becomes uninhabitable due to flood damage. Condo owners may need to investigate additional coverage options for these expenses.

• High-value items—Standard flood insurance policies have limits on coverage for high-value items such as jewelry, art and collectibles. Owners may need to purchase additional coverage to protect these items fully.

Learn More

For condo and flood insurance, contact Best Option Insurance & Tax.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.