Leak From the Condo Upstairs: Who Pays, the HOA or the Owner?
Condo leak from upstairs? Usually the owner's HO-6 pays first, up to a set amount, and the HOA master policy covers the rest. What Utah owners should check.
On the condo losses we work, it usually goes in layers: the owner's own policy (HO-6) pays first, up to a set amount, often around $5,000 to $10,000. If the damage goes beyond that, the HOA's master policy steps in. That amount is usually tied to the master policy's deductible, so it's different in every building. Where the leak started and what your declaration says can change the order. Whatever the answer, start drying right away. The water won't wait for the HOA to decide.
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This post explains how condo water losses usually work. It isn't legal advice. Your declaration, your policies and Utah law control. Talk to your HOA, your agent or an attorney about your situation.
How do the owner's policy and the HOA policy split the bill?
Here's the usual order on the condo losses we see:
| Layer | Who pays | Example |
|---|---|---|
| First dollars of damage | The owner's HO-6 policy | Up to about $5,000 or $10,000, depending on the building |
| Damage past that amount | The HOA's master policy | Structure and whatever else the master policy covers |
| Your belongings and upgrades | Usually your HO-6 | Furniture, electronics, improvements you added |
"It'd be the owner's insurance first, and then it would go to the HOA if it went past that," says Seth Saxton, Keystone's owner.
The exact amount and the details come from your HOA's master policy and declaration, so get both before you need them.
Where did the leak start?
The source often decides whose policy is looked at first:
| Where the leak started | Usually looked at first |
|---|---|
| Common pipe, roof or building component | The HOA and its master policy |
| Inside the upstairs unit (toilet, tub, appliance, supply line) | The upstairs owner and their HO-6, then the master policy for the building |
| Inside your own unit | You and your HO-6 |
These lines blur. A leak from inside a unit can still damage common elements, and many master policies cover parts of the building no matter where the water came from. Your declaration decides who maintains and insures what.
What does the HOA's master policy cover?
Master policies come in a few general types, and your declaration says which applies:
- Bare walls: covers the building structure, but not the interior finishes inside your unit
- Single entity: covers the structure plus original fixtures and finishes in each unit
- All-in: also covers improvements and upgrades owners added
Ask your HOA or property manager for the master policy's declarations page and deductible. You're entitled to know what's covered before you need it.
Why did the HOA say it won't pay anything?
Usually it's the deductible. Master policies often carry high deductibles. If the damage costs less than the deductible, the master policy pays nothing, and the HOA may pass the cost to an owner.
In Utah, Utah Code § 57-8-43 addresses this. In general, it lets the association make a unit owner responsible for the share of the master deductible tied to damage to their unit. It also requires the association to notify owners of the deductible amount and any changes. Check the current statute and your own declaration for the details, since both control how it works for your building.
That's why the loss assessment coverage on your HO-6 matters. It can help pay your share of the deductible or a special assessment. Check your limit. Many policies have a low default limit that's worth raising if your HOA's deductible is high.
What should I do first?
- Stop the water. Knock on the upstairs door. If no one answers, call the HOA or property manager to get access or shut off water to that unit.
- Protect your unit. Cut power to wet ceiling fixtures, move belongings, and put buckets down. Here's the full first-hour checklist for a ceiling leak.
- Notify everyone in writing. The HOA or manager, the upstairs owner, and your own insurer. Email works and leaves a record.
- Photograph everything in your unit and, if you can, the source upstairs.
- Start mitigation. Don't wait for the who-pays question to be settled. Most policies expect you to keep damage from getting worse, and wet drywall can grow mold within days.
What if the upstairs owner keeps leaking?
Repeated leaks from an absentee owner are a common condo problem. Your options usually run through the HOA:
- Ask the HOA to enforce the declaration's maintenance rules against the upstairs owner.
- Ask whether the declaration lets the HOA make the repair and charge the owner for it.
- Keep a dated log of every leak, with photos.
- If the HOA won't act, talk to an attorney about your options against the owner or the association.
How does documentation help when several insurers are involved?
A condo leak can involve the master policy, the upstairs owner's HO-6 and yours. Each adjuster wants to see the same thing: where the water went and how wet it got.
On Keystone jobs, every affected area is moisture-mapped across every unit we're working in, checked with a Protimeter MMS3 meter, and logged daily. Before we close the job, we go back for a final check, and the owners or property manager get a final report with meter photos. That one set of records can go to every adjuster on the loss. How we get paid depends on the carrier. On a covered claim, Keystone doesn't balance-bill: if insurance pays less than our full invoice, we don't bill you for the difference.
Questions to ask your HOA and your agent
| Ask your HOA | Ask your agent |
|---|---|
| What type of master policy do we have? | What does my HO-6 cover for walls, floors and upgrades? |
| What's the master deductible? | What's my loss assessment limit? |
| How is the deductible assigned to owners? | Do I have water backup coverage? |
| Who maintains the pipe that failed? | Does my policy cover temporary housing? |
Renting your condo instead of owning it? See what renters should ask for after an upstairs leak.
What's not included: Keystone Restoration handles mitigation: water removal, tear-out and drying. Rebuilding ceilings, walls and floors is handled by our sister company, Keystone BuildWorks. We can't decide who's responsible under your HOA's documents.
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