Pennsylvania guide

Pennsylvania condo insurance risk

Pennsylvania condo insurance is shaped by Title 68's master-coverage requirements, the critical waiver-of-subrogation provision under § 3312(c)(2), and the absence of statutory flood or earthquake mandates. Pennsylvania premiums rose about 8 percent statewide in 2023.

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Hurricane Ida (2021) demonstrated the consequence of the flood-coverage gap. For Philadelphia and Pittsburgh diligence, master-policy and flood-coverage review carry substantial weight.

What Title 68 requires

Master property insurance covering common elements and units (minus owner improvements) at minimum 80 percent of actual cash value. Commercial general liability per board's set amount. Waiver of subrogation under § 3312(c)(2). Fidelity coverage is optional.

The waiver-of-subrogation requirement

Under § 3312(c)(2), the master policy must include a waiver of subrogation — preventing the insurer from pursuing unit owners after a covered loss. E.D. Pa. case law has held that if the waiver is missing from policy language, the insurer may pursue at-fault owners. Verify the waiver appears in the actual policy, not just statutory framework.

Flood, earthquake, wildfire — separate and frequently absent

Title 68 does not require flood, earthquake, or wildfire coverage. Master policies typically exclude them. Buildings in flood zones need NFIP or private flood coverage on common elements. Hurricane Ida (2021) caused widespread Pennsylvania flooding affecting condos that relied solely on master policies.

PA FAIR Plan as last resort

The Pennsylvania FAIR Plan provides insurance for properties that cannot place coverage in the admitted market. It covers fire, wind, and hail but not flood. FAIR Plan placement is a signal that admitted-market underwriting has become difficult for the building.

Pennsylvania legal references

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

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Reviewer's checklist

  • Request the master policy declarations page and exclusions endorsement
  • Verify 80% ACV coverage minimum under § 3312
  • Confirm waiver of subrogation appears in actual policy language (§ 3312(c)(2))
  • Verify wind/hail deductible relative to 5% Fannie Mae threshold
  • Confirm flood coverage status (typically separate or absent)
  • For buildings in FEMA flood zones: verify NFIP or private flood coverage
  • Identify whether FAIR Plan is in use
  • Request recent claim history (last 5 years, especially post-Ida)
  • Ask about any non-renewal letters or carrier changes
  • Size HO-6 loss-assessment limit against realistic flood and routine exposure

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FAQ

Frequently asked questions

Risk Intelligence

Get a Free Risk Report on Your Condo or HOA

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.

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
  • Realtor