Nevada guide
Nevada condo insurance requirements
Insurance is among the most volatile risks in a Nevada condo purchase, and unlike many states Nevada sets clear statutory floors. Under NRS 116.3113, the association must maintain master property insurance on the common elements (at least 80% of replacement cost), general liability coverage, fidelity or crime coverage (the greater of $5 million or three months of assessments), and directors-and-officers / errors-and-omissions coverage of at least $1 million.
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Because NRS Chapter 116 governs both condominiums and planned-community HOAs, these requirements apply across property types. Earthquake and flood coverage are not mandated — a real gap given Reno's seismic exposure. The market context is genuinely stressful: a 2025 law (AB376) now allows insurers to carve wildfire coverage out of HOA policies, reflecting a wildfire insurance crisis across Tahoe, Reno, and Carson, and Nevada has no state FAIR plan for HOAs. For a buyer, the master policy is both a risk document and a financing document.
What NRS 116.3113 actually requires
NRS 116.3113 requires the association — to the extent reasonably available — to maintain property insurance on the common elements against risks of direct physical loss commonly insured against, in an amount not less than 80% of the actual replacement cost at each renewal, plus commercial general liability insurance covering occurrences common to the type of community. Nevada layers on additional mandates: fidelity (crime) coverage in an amount equal to the greater of $5 million or three months of total assessments, and directors-and-officers and errors-and-omissions coverage of at least $1 million. Because Chapter 116 is a unified statute, these requirements reach both condominiums and planned-community HOAs. The statute preempts conflicting governing-document provisions, so a declaration cannot waive these floors. Coverage below the 80% replacement-cost floor, or missing fidelity or D&O coverage, is a statutory red flag worth raising before closing.
Earthquake and flood are optional — a real Nevada gap
NRS 116.3113 does not mandate earthquake or flood insurance, and many Nevada master policies exclude both. That gap matters because Reno sits in one of the more seismically active parts of the state, and flash flooding affects desert metros after intense storms. A condominium near Reno or Carson City without earthquake coverage is exposed in a way the statutory floors do not address, and an owner in a FEMA Special Flood Hazard Area should expect to carry separate NFIP or private flood coverage because the master policy generally excludes it. Read the master-policy declarations page for what is excluded, not just what is required, and ask whether the association has evaluated earthquake coverage given the building's location. The legal minimum is not the same as adequate coverage for the building's actual hazards.
AB376, the wildfire carve-out, and no FAIR plan
Nevada's wildfire exposure — Lake Tahoe, the Reno-Sparks foothills, and Carson Valley — has driven an insurance crisis, and a 2025 law (AB376) now permits insurers to carve wildfire coverage out of HOA policies. That means a master policy can satisfy NRS 116.3113's property requirement while excluding the very peril most likely to cause a catastrophic loss in a foothill community. Compounding the problem, Nevada has no state FAIR plan or insurer of last resort for HOAs, so an association that loses standard wildfire coverage must turn to the surplus-lines / excess-and-surplus market at higher cost, or go bare on that peril. For a buyer in a wildfire-exposed community, confirm whether the master policy still includes wildfire coverage at all, what it costs, and whether the association can renew it — this is now a threshold question, not a detail.
Deductibles, financing, and your own HO-6
Rising premiums and deductibles in Nevada's hard market collide with secondary-market financing standards. Fannie Mae and Freddie Mac generally cap the per-unit master property deductible at 5% of coverage and impose replacement-cost rules, so a master deductible above that cap, a surplus-lines placement, or a wildfire exclusion can render a project non-warrantable and block conventional financing. Read the master declarations page as a financing document, then read your own HO-6 against it: many declarations push unit-originated claim deductibles onto the responsible owner, and large blanket deductibles may be apportioned among owners — so loss-assessment coverage on your HO-6 matters, especially given Nevada's mandated reserve funding can still be overwhelmed by an uninsured wildfire or earthquake loss. A master policy placed in surplus lines, or one that has carved out wildfire, signals a stressed situation worth examining closely.
Nevada legal references
- NRS 116.3113 — Insurance requirements (property ≥80%, liability, fidelity, D&O)
- NRS Chapter 116 — Common-Interest Ownership (governs condos and HOAs alike)
- NV Ombudsman for Owners in Common-Interest Communities (NRED)
Informational only. Not legal advice. Always confirm against current statute and counsel.
Need help applying these Nevada statutes to your specific situation? We can connect you with state-licensed counsel and specialists familiar with this exact regulatory environment.
Find a Nevada specialist →Reviewer's checklist
- Confirm master property coverage at no less than 80% of replacement cost (NRS 116.3113)
- Confirm commercial general liability coverage is in force
- Confirm fidelity/crime coverage at the greater of $5M or three months of assessments
- Confirm directors-and-officers / E&O coverage of at least $1M
- Pull the master-policy declarations page and note the deductible against the GSE 5% cap
- Check whether the master policy still includes wildfire coverage after AB376 (2025)
- Confirm earthquake coverage near Reno/Carson — it is not statutorily mandated
- Confirm flood coverage and FEMA flood-zone status; master policies generally exclude flood
- Ask whether the master policy is placed in the standard market or surplus lines / E&S
- Review your own HO-6 loss-assessment limit against the master deductible
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Get My Free Risk Report →Source documents
- Declaration & bylawsthe rules
- Budget & financialsthe money
- Reserve studythe big repairs
- Meeting minuteswhat the board fears
Cross-reference
The risk lives in the contradiction between documents.
An assessment in the minutes but not the estoppel; a reserve the budget never funds.
Risk report
Severity-graded across 8 categories.
Every finding cites the document, page number, and quoted text.
How CondoSignal reviews this
We read the reserve study, operating budget, and 24 months of meeting minutes together — nevada condo insurance requirements risk usually lives in the contradiction between documents, not in any single one of them. Every finding cites the source document, the page number, and the quoted text behind it.
See our 8-category framework →Risk Intelligence
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A special assessment, an insurance non-renewal, a thin reserve study — find out whether it signals real risk, checked against your state's rules, with page citations you can verify. No cost, no obligation.
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Related reading
Guides for Nevada buyers and owners
The Complete Condo Master Insurance Guide (2026)
How master policies are structured, how percentage deductibles create owner exposure, what your HO-6 needs to cover, and what to verify before you close — across Florida, Texas, and Arizona.
Condo Master Insurance Red Flags: What to Check Before Closing
Master-policy gaps, large deductibles, exclusions, and loss assessments can become the buyer's problem after closing. Learn what each section of the master insurance certificate discloses — and the red flags to check before you close.
Should I Buy a Condo With a High Master Insurance Deductible?
A high master-policy deductible can reach you as a loss assessment. Learn what to check on the master policy and HO-6 — and get a free review.
Nevada Investor-Owned Condo Warning Signs: What Resident Buyers Should Read
Heavily-investor-owned Nevada condos carry distinct financial, governance, and capital-planning risks. Here is how to read the documents for them before you close.
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Reviewed by Kirk Hasley, Founder. Every claim here is checked against current Nevada statute and primary sources, using the same documented review framework we run on every file. Last reviewed June 13, 2026.
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Risk Intelligence
Get a free read on the notice you just got
A special assessment, an insurance non-renewal, a thin reserve study — find out whether it signals real risk, checked against your state's rules, with page citations you can verify. No cost, no obligation.
Expert Matching
Want help acting on what you found?
We can connect you with insurance brokers, realtors, and mortgage brokers who can help you respond to what your documents reveal.
- Insurance broker