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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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.
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Nevada legal references
- NRS 116.3113 — Required association insurance
- AB 376 (2025) — Wildfire coverage carve-outs in insurance policies
- Nevada Division of Insurance
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
- 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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Get my free risk report →Want every document to request before you buy in Nevada — with the local red flags and the statute behind each? See the complete Nevada condo due-diligence checklist →
The math
$20,000,000 building
× 5% wind deductible
= $1,000,000
sits between the storm damage and the first dollar the insurer pays — and can be passed to owners as a loss assessment.
Bare-walls vs. all-in
A bare-walls master policy stops at the unfinished walls — your HO-6 has to cover drywall, flooring, cabinets, and fixtures. An all-in policy reaches the original fixtures. Which one your building carries decides how much HO-6 coverage you actually need.
Loss-assessment coverage on your HO-6 is the buffer for the deductible above — and it's frequently set too low.
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 risk 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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Related risk areas
Read these next to round out your due diligence
Condo document review
A condo document review is the structured analysis of every disclosure document your seller or association has provided — declaration, bylaws, rules, reserve study, budgets, financials, meeting minutes, insurance summary, estoppel or resale certificate, and any pending special assessment notices.
Special assessments
Special assessments are the single largest source of financial surprise in condo and HOA ownership.
Reserve studies
A reserve study tells you what the association expects to spend on long-term capital repairs and replacements, and whether it is funding those obligations adequately.
Related reading
Guides for Nevada buyers and owners
Nevada Super-Priority Lien Risk: What 9 Months of Unpaid Dues Mean for Buyers and Lenders
Nevada's nine-month super-priority lien primes a first mortgage and is foreclosed non-judicially. Here is how to read the risk in a Las Vegas or Reno purchase before closing.
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.
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.
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.
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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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Every finding cites the exact page in your documents
“The board approved a $15,000-per-unit special assessment for façade repairs, payable over 12 months.”
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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.
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