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In shared communities like condominiums and townhome associations, walls don’t just separate homes—they define legal responsibility. So what happens when damage doesn’t stop at a unit’s boundary? Maybe a pipe bursts upstairs, and the water seeps through the ceiling below. Or mold quietly spreads between units, making it hard to tell where it started. When damage crosses those invisible lines, determining who pays can get complicated fast.
At Precedent Hospitality, we’ve seen firsthand how confusing this issue can be for both board members and residents. If your association has ever found itself in a gray area about cross-unit damage, you're not alone—and you're not without options either. We can help you figure out exactly what you’re responsible for and what you’re not. Let’s connect about how we can support your community.
Let’s talk about what really happens when damage travels between units, why it's so often misunderstood, and how to keep your community from getting caught off guard.
Damage Doesn’t Respect Walls—And Neither Does Responsibility
It’s a common assumption: what happens inside my unit is my problem, and what happens outside is the association’s. But that logic doesn’t always hold up. Think about how many systems in a building aren’t confined to one home—plumbing, electrical wiring, insulation, even structural supports. These systems often run through multiple units or through common areas. That means a small problem in one place can turn into a much bigger one somewhere else.
In Florida, state condominium law (Fla. Stat. §718.111(11)) https://www.leg.state.fl.us/statutes requires associations to insure the common elements of a building, but the exact definition of “common” varies depending on what your governing documents say. Meanwhile, unit owners are often expected to have HO-6 insurance https://www.naic.org/consumer_homeowners.htm that covers interior finishes and personal property. The problem is that when something goes wrong in the space between—like a shared pipe or subfloor—it’s not always clear who’s on the hook.
Here’s a scenario we’ve seen before. A resident notices a growing water stain on their ceiling. Maintenance discovers it’s coming from a dishwasher leak in the unit directly above. The ceiling is damaged, the walls are wet, and now there’s concern about mold. The upstairs resident wasn’t aware of the leak, so they didn’t report it. The downstairs resident is angry. And the board is wondering whether it’s now their responsibility to step in.
This kind of situation isn’t just frustrating—it can also be expensive. If negligence can be proven, the owner responsible for the original issue might end up footing the bill. If not, repairs might fall to the association or be split among insurance carriers. Some of these answers are found in your governing documents, but even then, interpretation can be tricky.
That’s why many boards work closely with legal experts, like those at https://www.floridacondohoalawblog.com or the Department of Business and Professional Regulation, to figure out their next steps.
Why Your Documents Can Be Your Best—or Worst—Asset
One of the most common issues we see in communities facing cross-unit damage is that their governing documents are either out of date or too vague. Maybe they were written 20 or 30 years ago and don’t account for today’s building standards or common ownership trends. Or maybe they use unclear language about who is responsible for what when things go wrong.
If your documents don’t spell out who maintains what—especially when it comes to shared systems—it can create confusion and even legal risk. In some cases, associations have ended up paying for damages they didn’t have to, simply because the documents weren’t clear enough to enforce another solution.
This is one reason we recommend having your documents reviewed and updated by a professional. Legal experts, like those at Varnum Law, can help you revise declarations, bylaws, and maintenance policies so that your community isn’t left in limbo when a problem arises. The Community Associations Institute (CAI) also offers a range of guides and templates that help clarify best practices for HOAs and condominium boards.
If it’s been more than 10 years since your documents were reviewed, that’s usually a sign it’s time for an update. Precedent Hospitality offers document audits as part of our onboarding process, so you don’t have to figure it out alone.
What About Insurance?
If your community’s insurance policies haven’t been evaluated recently, now’s a good time to do it. One of the biggest pain points for associations dealing with shared damage is misunderstanding what’s covered—and what’s not.
Typically, the association’s master insurance policy covers structural elements, like walls, foundations, roofs, and original building systems. But it usually doesn’t cover things like upgraded cabinets, flooring, or appliances inside a unit. That’s where the unit owner’s HO-6 insurance comes in. These policies should cover interior finishes and personal belongings, and ideally they also include loss assessment coverage, which helps in cases where the association needs to levy a special assessment after damage.
This coverage mix only works when everyone understands it—and when unit owners are actually carrying HO-6 policies. That’s why many associations now require owners to submit proof of insurance annually.
Boards should also sit down with their broker at least once a year to evaluate deductibles, exclusions, and overall risk. Some great resources to help you better understand these policies include https://www.insurancejournal.com, and Florida-based specialists like Palm Insurance.
If your community is dealing with a tricky claim, or if an insurance company is dragging its feet, it might be worth bringing in a public adjuster or legal consultant. Sites like Varnum Law offer consultations and claim support for associations.
We also work directly with our clients’ insurance carriers and legal counsel to coordinate efficient, fair resolutions to multi-unit damage.
So, How Do You Prevent It?
You can’t always prevent cross-unit damage, but you can definitely reduce how disruptive it becomes. Regular maintenance and clear communication are everything. Schedule routine inspections for plumbing and electrical systems—especially in older buildings. Keep digital logs of issues, and encourage residents to report small leaks or concerns before they turn into big problems.
Educating your residents also helps. Most owners don’t understand where their responsibility ends and the association’s begins. You can provide annual insurance reminders, offer FAQ sheets, or host informational meetings. Sites like https://www.naic.org and https://www.fema.gov offer easy-to-understand resources you can share.
We also help our clients develop maintenance tracking tools and standardized owner communication templates. That way, when a problem arises, you’ve already laid the groundwork for how it will be handled.
If you’re not sure where to start, we can walk you through our process. Let us show you how we help communities stay proactive and protected.
FAQ's
1. Who is liable if a leak from one unit damages another?
It depends on whether negligence was involved. If an owner failed to maintain their unit, they could be responsible. If not, the damage may fall under insurance policies.
2. Can the association make an owner repair their unit if it's causing damage?
Yes, especially if there’s a risk to other units or common areas. Most governing documents allow for emergency access and enforcement.
3. What counts as a “common element”?
This usually includes things like roofs, shared plumbing, electrical lines, and exterior walls. Your governing documents define it.
4. Should associations require proof of owner insurance?
Absolutely. Requiring HO-6 coverage protects both the owner and the community when things go wrong.
5. What if neither owner admits fault?
The association may have to get involved, perform an investigation, and potentially submit an insurance claim to avoid delay.
6. Can owners sue each other for damage?
Yes, especially in cases of negligence. But mediation is often more efficient and less costly.
7. Can the board access a unit for inspection?
Yes, with notice—or immediately in an emergency. Florida law supports this right for associations.
8. Is it a good idea to raise the insurance deductible?
It depends. Higher deductibles lower premiums but increase the out-of-pocket burden during claims.
9. What’s mediation and when is it used?
Mediation is a legal method of resolving disputes without going to court. Florida’s Division of Condominiums offers services for this.
10. How do we prevent future issues?
Strong documents, good maintenance, annual insurance reviews, and clear resident education go a long way.
