Water Damage in a Reston or Centreville Condo: Whose Insurance Covers What?

Published 2026-03-04 · 6-minute read

You live in a Penderbrook condo in Fair Oaks, or a Lake Anne townhome in Reston, or a Compton Village unit in Centreville. The unit above you floods and water comes through your ceiling. Who pays? This question has a more complicated answer than most condo and townhome owners expect, and getting it wrong means either underpaying out of pocket or leaving legitimate coverage unclaimed.

The Two-Layer Insurance Structure

Most condo and townhome HOAs carry a master insurance policy that covers the structure of the building — the framing, the roof, the common areas, and sometimes the interior of units down to a defined "original condition" standard. Individual unit owners carry an HO-6 policy (condo owner's policy) that covers interior improvements, personal property, and loss of use.

The boundary between master policy coverage and HO-6 coverage varies by association and is defined in the HOA's declaration documents. The two most common structures are:

"Bare walls" coverage: The master policy covers structure and common elements. Everything inside the unit walls — flooring, cabinets, fixtures, interior finish — is the unit owner's responsibility under their HO-6 policy. This is common in older HOAs in Reston and Annandale.

"All-in" coverage: The master policy covers structure plus original-condition fixtures and finish inside units. The HO-6 covers improvements made by owners beyond original condition and personal property. This is more common in newer HOAs in Centreville and Chantilly.

You need to read your association's declaration documents to know which applies to you. Many condo owners have never seen these documents.

The Source Unit vs. The Affected Unit

When water from Unit A damages Unit B below, the claims picture involves both units and potentially both policies. Generally: the source of the water (the pipe failure, the appliance leak, the overflowing toilet) is claimed against the source unit owner's HO-6 liability coverage if it's within the unit owner's maintenance responsibility. If the source is in a common area (a shared pipe chase, a roof element, a HOA-maintained mechanical system), it's claimed against the master policy.

Determining which it is requires correctly identifying the source, which is why the documentation from the restoration crew matters so much. We generate separate moisture maps and damage documentation for each affected unit from the first assessment — the source identification is part of that documentation. This is what your property manager and both carriers will need to process claims without dispute.

The Gap to Watch For

The most common coverage gap in condo water damage: the master policy has a high deductible ($5,000–$25,000) that is not covered by the individual HO-6 policy in a "loss assessment" scenario. If the master policy deductible applies and your HO-6 doesn't include a loss assessment endorsement, you may owe a share of the deductible even if the damage originated outside your unit. Loss assessment coverage is typically available as an endorsement for $25–$50/year and covers your share of master policy deductibles and special assessments up to the coverage limit. Check whether you have it.

What We Do to Help

On multi-unit water events throughout the Reston, Centreville, Penderbrook, and Compton Village communities, we treat documentation for each unit as a separate claim from the start. We communicate with the HOA property manager, both unit owners, and both carriers simultaneously where necessary. We've handled enough Reston townhome and Centreville condo events to understand the specific HOA structures in these communities.

Call (571) 708-6083 for any condo or townhome water event. We serve Reston, Centreville, Fair Oaks, Chantilly, and all surrounding communities 24/7.