Nevada guide

Nevada condo insurance risk

Nevada condo insurance is shaped by NRS 116.3113–31135 (mandatory association insurance), AB 376 (2025) which lets insurers carve out wildfire coverage, and the absence of any statutory earthquake mandate. The result is wide variation: well-insured Las Vegas urban buildings can sit alongside Reno or Tahoe-adjacent associations carrying wildfire exclusions, surplus-lines placements, or coverage gaps that materially shift exposure back to owners.

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Reading the master policy declarations page and exclusions endorsement is one of the higher-leverage diligence steps in a Nevada purchase.

What NRS 116 actually requires

NRS 116.3113 requires associations to insure common elements at minimum 80 percent ACV (excluding land and foundations), carry general liability per the declaration, maintain fidelity coverage of at least $5 million or three months' assessments for associations with employees or significant fund handling, and carry directors-and-officers coverage of at least $1 million. The statute does not require flood, earthquake, or specific wildfire coverage.

AB 376 (2025) and the wildfire carve-out

AB 376 (2025) explicitly permits Nevada insurers to exclude wildfire coverage from homeowners and association policies — a legislative recognition of the state's wildfire-driven market stress, particularly in Northern Nevada. Confirm wildfire treatment on the declarations page and exclusions endorsement. For Reno, Lake Tahoe, Carson, and Sierra-adjacent communities, this is a material diligence point.

Earthquake exposure — usually excluded

Northern Nevada and parts of Southern Nevada sit in active seismic zones. Earthquake coverage is generally excluded from standard master policies. Some associations buy it separately; many do not. For your HO-6, size loss-assessment coverage against realistic seismic exposure if the master policy lacks earthquake coverage.

Flash flood and stormwater

Nevada is inland but flash floods occur, particularly in Las Vegas Washes and after monsoon storms. Standard master policies exclude flood. Associations in flood-prone areas may carry NFIP or private flood coverage on common elements; many do not. Owners in flood zones should plan to carry their own contents and loss-of-use coverage.

Master-policy deductible and financing eligibility

Fannie Mae generally requires master-policy deductibles at or below 5 percent of insured value for the loan to be eligible. Master policies above that threshold create financing problems for buyers. Verify the deductible structure, including named-peril deductibles (wind, hail) which may exceed the all-perils deductible.

Nevada legal references

Informational only. Not legal advice. Always confirm against current statute and counsel.

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Reviewer's checklist

  • Request the master insurance policy declarations page and exclusions endorsement
  • Confirm the deductible is at or below 5 percent for conventional financing eligibility
  • Verify wildfire treatment in light of AB 376 (2025) — particularly for Northern Nevada communities
  • Identify whether earthquake coverage is in place (usually not)
  • Confirm fidelity coverage meets NRS 116.3113 minimums (≥$5M or 3 months' assessments)
  • Confirm D&O coverage of at least $1M is in place
  • Verify common-element coverage at minimum 80 percent ACV (NRS 116.3113)
  • Request the recent claim history for the last 5 years
  • Determine whether coverage is all-in or bare-walls
  • Size your HO-6 loss-assessment limit against realistic master-policy exposure

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Free, structured read of what's actually behind a fee change, an insurance renewal, or a pending assessment — with page citations you can verify. No cost, no obligation.

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We can connect you with insurance brokers, realtors, and mortgage brokers who can help you respond to what your documents reveal.

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