We had a leak at one of our condo listings last night and our owner was called to open up their unit at 3:00am. The leak did not originate from our client’s unit but it did penetrate through the walls and underneath the laminate floor in the 2nd bedroom.

What happens when there is a leak in a condo unit? Hopefully both the owner of the unit where the leak originated as well as the units that were damaged both have HO6 or “in-walls” insurance. Condos are part of a home owner’s association or AOAO which has a blanket insurance policy for the building’s exteriors and common areas. However this insurance does not cover anything within the actual unit itself (between the walls). Not all home loans require the owner to obtain H06 insurance so I always recommend that buyers obtain this anyways. It is relatively inexpensive ($200-$300 per year) and protects owners in situations such as this.

Our owner has filed a claim with his H06 insurance company who will most likely schedule to have the damaged floor replaced. Once the origin of the leak is found, that unit’s H06 carrier will work with our client’s insurance company to handle any damages, just like car insurance. On the plus side our client ends up with new flooring in their 2nd bedroom. On the negative this leak must be fully disclosed to any potential buyer and could be seen as a downside to the unit’s appeal.

If you’re in need of an HO6 policy or alternative property insurance please feel free to contact me at (808) 351-8394 or JoeC@betterhawaii.com and I would be happy to refer you to several great insurance agents.