Water Damage and Insurance in HOA Communities in California: What You Need to Know
- Sara Adelzadeh
- May 17
- 2 min read
Water Damage and Insurance in HOA Communities in California: What You Need to Know
Water damage is one of the most common — and costly — issues faced by homeowners in California’s HOA (Homeowners Association) communities. From burst pipes to roof leaks, even minor water intrusions can cause significant damage. But when disaster strikes, a key question arises: Who pays for the repairs? Understanding the relationship between water damage and insurance in an HOA community is crucial for both homeowners and associations.
Understanding Responsibility
In California, responsibility for water damage often hinges on two factors: the location of the damage and what the governing documents of the HOA (CC&Rs) specify. Generally, the HOA is responsible for maintaining and repairing common areas, including the exterior walls, roofs, and shared plumbing systems. Homeowners, on the other hand, are typically responsible for the interior of their units — such as flooring, drywall, fixtures, and personal property.
However, these responsibilities can vary widely depending on how the CC&Rs define the boundaries of ownership. In some cases, even components inside a unit may fall under the HOA’s jurisdiction if they are considered part of the structural infrastructure.
Most HOAs carry a master insurance policy that covers the common areas and, sometimes, certain structural elements of individual units. This policy usually includes property damage and liability coverage. Homeowners are expected to carry their own individual insurance — often referred to as an HO-6 policy — which covers interior walls, personal belongings, and may even include coverage for certain assessments imposed by the HOA due to damage.
It's important for homeowners to review both the HOA's master policy and their own policy to ensure there are no gaps in coverage. In particular, water damage resulting from slow leaks, homeowner negligence, or maintenance issues may not be covered by either policy if not handled properly.
When a unit is rented out, the homeowner (landlord) remains responsible for maintaining the property and carrying the appropriate insurance. An HO-6 policy should include loss of rental income coverage in case the unit becomes uninhabitable due to water damage. The tenant should carry renter’s insurance to protect their personal belongings and potentially cover temporary housing.
It’s essential for landlords to ensure tenants understand their reporting responsibilities and that the unit is properly maintained to avoid preventable issues.
Final Thoughts
Water damage in an HOA community can be complex, but understanding your responsibilities and insurance coverage is the first line of defense. Homeowners should regularly review their HO-6 policy, stay informed about the HOA’s master policy, and address maintenance issues promptly. Likewise, HOAs should educate members about insurance responsibilities and ensure their governing documents are clear and up to date.
When in doubt, consulting with an attorney or insurance expert familiar with California HOA law can help avoid costly misunderstandings.
Happy Realty,
Sara Adelzadeh
Realtor | Property Management Coordinator
Southern CA Region
Direct: (408) 375-2121
Office: (714) 338-8877
