H06 Insurance When a pipe fails, Boards often reflexively point the finger at the unit owner to protect the Association’s budget. However, in Washington, determining liability for a $50,000 deductible requires a much higher burden of proof than simply “it happened in your unit.”

The Burden of Proof for Negligence

To legally shift the cost of a deductible to an owner under RCW 64.90.480, the Association must typically prove three things:

  • Duty: The owner had a specific duty to maintain that exact pipe.
  • Breach: The owner failed in that duty (e.g., they ignored a known leak or performed unpermitted DIY plumbing).
  • Causation: That specific failure directly caused the rupture.

If a copper pipe fails due to a construction defect or electrolysis behind a wall, the owner generally cannot be held negligent. You cannot maintain what you cannot see, and Washington courts generally do not favor “strict liability”—the idea that you are responsible for everything within your four walls regardless of fault.

The “Common Expense” Safety Net

If negligence cannot be proven, the cost is a Common Expense. This means the $50,000 deductible is paid out of the Association’s operating or reserve funds. While this may lead to a small special assessment for everyone, it prevents a single owner from facing financial ruin over a systemic building failure.
Actionable Strategy: The Deductible Resolution

To avoid these disputes, your Board should adopt a formal Deductible Allocation Policy. This resolution should clarify:

Standard of Maintenance: What specific inspections are owners expected to perform? (e.g., checking under-sink valves annually).

Default Allocation: If no negligence is found, how is the deductible split?

H06 Requirements*: Formally requiring all owners to carry H06 insurance with “Loss Assessment Coverage” that matches the Association’s deductible.

*An HO-6 policy, or condo insurance, is designed specifically for condominium and co-op owners to cover the interior of their unit (“walls-in”), personal belongings, and liability. It bridges the gap left by an HOA’s master policy, covering improvements, upgrades, and personal items, while providing loss assessment coverage.