Updated 2026-11-01
Water damage is one of the most common sources of claims in apartment buildings. When water travels from one unit to another, several policies can be involved.
The usual pattern
- The building structure and common elements are generally handled under the master policy, subject to its deductible.
- Interior finishes in each unit may fall to the master policy or to each owner's HO-6, depending on the master policy type and bylaws.
- Each owner's belongings are covered by their own HO-6 or renters policy.
- Liability may apply if the leak resulted from negligence, such as an unattended overflowing tub. Then the responsible owner's liability coverage may respond to the neighbor's claim.
Co-ops
In co-ops, the proprietary lease and house rules set responsibilities. Shareholders' policies often handle alterations and contents. See co-op apartments.
Reducing the risk
- Replace washing machine and dishwasher hoses periodically.
- Know where the unit's water shut-off valve is.
- Consider leak sensors under sinks and appliances.
- If the unit is rented or vacant for long periods, arrange regular checks.
Gradual leaks and lack of maintenance are commonly excluded, so prompt repairs matter.