Nevada Condo Insurance Requirements and 2026 Wildfire Rules

Nevada law requires a condo association to insure common elements for at least 80 percent of actual cash value under state statute. Effective January 1, 2026, insurance companies may legally exclude wildfire coverage from those master policies and offer it as a standalone product instead. At The HOA Guide, we review association coverage standards to help community boards identify statutory gaps before a claim occurs.

These statutory baselines protect board members and unit owners from unexpected assessments after a physical property loss or a liability claim. A master policy must balance state-mandated coverage types with emerging underwriting changes in the desert Southwest.

What Nevada Law Requires an Association to Insure

Nevada’s Common-Interest Ownership Act, codified in NRS 116.3113, requires every condo association to maintain property insurance on common elements against direct physical loss. The statute sets strict minimums. Coverage must equal not less than 80 percent of the actual cash value of the insured property at purchase and at each subsequent renewal.

This calculation excludes certain components. Land, excavations, foundations, and other items normally excluded from property policies do not count toward the actual cash value total. This is a statutory baseline. The association must secure this coverage no later than the first conveyance of a unit to someone other than the declarant. Coverage must begin early.

NRS 116.3113 mandates additional policies beyond basic property protection:

• Commercial general liability insurance, which must include medical payments coverage for injured parties on common elements.
• Crime insurance covering dishonest acts committed by board members, officers, employees, and volunteers.
• Directors and officers (D&O) liability insurance protecting board decisions.

These four coverages form the legal foundation for association protection in Nevada. If an association fails to carry any of them, it operates in violation of state law. For a broader overview of how standard association policies handle building components, see our guide on what HOA insurance covers. To evaluate carriers that write these multi-line commercial packages, review our national roundup of the best HOA insurance companies.

What the Policy Must Do for Individual Unit Owners

Under NRS 116.31133, a Nevada association master policy must extend four specific protections directly to individual unit owners. These statutory rights cannot be waived. They protect owners from bearing personal financial exposure for common-element events.

First, the policy must treat each unit owner as an insured person for liability arising from their ownership interest in the common elements or their association membership. If a visitor suffers an injury on a common walkway, the association policy covers the unit owner’s collective liability interest.

Second, the insurer must waive its right of subrogation against unit owners and members of their household. The insurer cannot pay an association claim and then sue a resident owner to recover those losses.

Third, no act or omission by a unit owner may void the policy or bar recovery under the policy. Even if an individual owner breaches an association rule or commits a negligent act, the insurer must still pay valid association claims. This rule prevents surprise denials.

Fourth, the association policy must serve as primary insurance if a unit owner maintains separate coverage for the same physical loss. The unit owner’s individual policy acts as secondary coverage. To understand how an owner’s personal HO-6 policy interacts with association coverage, review our comparison of HOA insurance vs homeowners insurance.

Nevada’s Wildfire Exclusion Law Under Assembly Bill 376

Assembly Bill 376 allows insurance companies in Nevada to exclude wildfire coverage from standard common-interest community master policies starting January 1, 2026. The law changed in 2026. Passed by the Nevada Legislature in its 2025 session, AB 376 fundamentally altered property underwriting across the state.

Prior to AB 376, insurers writing property coverage for common-interest communities generally bundled fire and wildfire perils into one standard property policy. Insurers now have statutory discretion. Under AB 376, carriers may strip wildfire risk out of standard homeowners and common-interest-community policies, leaving the remaining perils intact.

To address the resulting coverage gap, the statute permits insurers to offer wildfire-only coverage as a separate, standalone product. This change mirrors wildfire underwriting pressures seen across the Southwest. For context on regional trends, read our review of Arizona condo insurance, where desert interface risks also shape master policy pricing.

The Nevada Division of Insurance oversees carrier filings under AB 376. Boards facing renewals must confirm whether their carrier intends to issue a standard policy or invoke the wildfire exclusion.

Where Nevada Wildfire Exposure Concentrates

Wildfire risk for Nevada common-interest communities concentrates primarily on the urban-wildland fringe rather than dense interior city centers. Location determines underwriting risk. Carriers evaluating master policies focus heavily on geographic interface boundaries.

Underwriting scrutiny centers on three specific regions in Nevada:

• The western Las Vegas foothills near Red Rock Canyon
• The Henderson foothills
• The Reno-Sparks area adjacent to Sierra Nevada wildlands

Communities located in these three zones are the most likely to see carriers exercise their rights under AB 376. Fringe communities face distinct conditions. Associations situated in these foothills should expect insurers to examine proximity to undeveloped wildlands during annual policy reviews.

Comparing Master Policy Property Coverage Options Under AB 376

Evaluating master property coverage in Nevada requires boards to compare integrated policies against standalone wildfire arrangements permitted under AB 376. Both structures satisfy state minimums. However, they create distinct operational realities for community budgets.

Feature	Integrated Master Policy	Standalone Wildfire Policy
Statutory Authority	NRS 116.3113	AB 376 and NRS 116.3113
Perils Included	All-risk property including wildfire	Wildfire-only coverage
Policy Administration	Single declarations page and renewal	Two separate contracts and renewals
Underwriting Focus	Standard common-element valuation	Specific wildland interface location
Primary Availability	Urban areas away from foothills	Foothills and wildland fringes

Separate policies add administrative steps. When an insurer removes wildfire coverage under AB 376, the association must purchase a standalone policy to maintain full protection on common elements. Boards must track two separate renewal dates, premium schedules, and deductible structures.

Who This Guidance Does Not Fit

This guidance does not fit every Nevada common-interest community equally. Risk profiles vary by geography. Some associations face lower exposure.

Condo associations located in dense urban cores of Las Vegas far from the wildland-urban interface rarely face immediate wildfire exclusions. For these communities, standard admitted carriers continue to write traditional all-peril master policies without carving out wildfire risk under AB 376. Urban mid-rise buildings differ fundamentally.

Similarly, single-family HOAs where the association owns no structural buildings do not require master building property coverage. Those communities insure only shared amenities such as clubhouses or perimeter fencing. Their coverage needs differ substantially from multi-family condominium buildings governed by NRS 116.3113.

What Would Change This Guidance

Two specific legal or regulatory actions would alter the current framework for Nevada condo insurance. State administrative rules could shift. Future legislative sessions could act.

First, if the Nevada Division of Insurance issues new administrative regulations restricting how carriers apply AB 376 exclusions, carrier obligations would change. Administrative bulletins clarifying disclosure timelines or rate caps on standalone wildfire products would immediately alter renewal negotiations.

Second, the Nevada Legislature could amend NRS 116.3113 or AB 376 in an upcoming legislative session. If lawmakers adjust the 80 percent actual cash value minimum or mandate bundled wildfire coverage, boards would operate under revised statutory benchmarks.

What to Do Before Your Next Policy Renewal

Condo boards must review their declarations page and carrier notices at least ninety days before policy expiration. Do not wait for renewal. Early review prevents budget surprises.

Take four concrete steps during the renewal window:

1. Review the existing policy against NRS 116.3113 to confirm the property limit equals at least 80 percent of actual cash value for common elements.
2. Verify that commercial general liability, crime, and D&O policies are fully bound and active.
3. Check all renewal notices for wildfire exclusions permitted under AB 376.
4. Secure written quotes for standalone wildfire policies if the existing carrier issues an exclusion notice.

For a complete roadmap on community reserve planning and insurance budgeting, explore our HOA insurance and reserves hub.

This is educational information, not insurance or legal advice. A board should confirm its coverage against NRS 116.3113 and NRS 116.31133 with a licensed Nevada insurance broker, and consult a Nevada community-association attorney for its specific situation, including whether AB 376’s wildfire exclusion applies to its master policy.