Condo insurance, commonly called HO‑6 insurance, is a homeowners policy designed specifically for condominium unit owners. Instead of insuring a whole house and the land, condo insurance primarily protects the interior of your unit (the “walls‑in”), personal property, liability, and any improvements or betterments you’ve made to the unit.
Understanding “condo insurance” matters at purchase, closing, and throughout ownership. Lenders often require proof of an HO‑6 policy; buyers need to know which repairs and losses the condo association’s master policy covers versus what they must insure themselves. Misunderstanding those boundaries can lead to surprise expenses, denied claims, or gaps in coverage when damage occurs.
Throughout this article the primary term condo insurance is used alongside the secondary phrase HO‑6 insurance meaning to clarify purpose and scope for buyers and owners.
Homeowners insurance (HO‑3, HO‑5, etc.) typically covers the entire structure (foundation, exterior walls, roof), detached structures, and the land as well as contents. Condo insurance (HO‑6) focuses on:
The condo association’s master policy usually handles exterior building components and common areas.
An HO‑6 can act like homeowners insurance when it includes robust dwelling/alterations limits and replacement‑cost personal property endorsements. It does not replace coverage for exterior building features, shared mechanical systems, or common-area liabilities—those are typically the HOA’s responsibility.
Example snapshot:
Knowing which line item belongs to which policy avoids duplicate coverage and dangerous gaps.
Request the master policy summary or Certificate of Insurance and ask:
Owners often assume the HOA covers everything inside their unit—this is false in many associations. Typical misunderstandings:
Always verify the CC&Rs and master policy to confirm the boundary lines.
Dwelling coverage in an HO‑6 insures the interior structural elements and any upgrades you’ve paid for—flooring, built‑in cabinets, kitchen counters, and sometimes interior plumbing or wiring—depending on the HOA’s master policy language. Coverage is usually stated as a dollar limit for “dwelling” or “insured structures.” Consider listing and valuing renovations when buying the policy.
Personal property covers belongings inside the unit. Policies reimburse on either replacement cost (RC) or actual cash value (ACV). RC pays to replace items at current prices; ACV subtracts depreciation. For electronics, furniture, and other valuables, RC is preferable. High‑value items (jewelry, fine art) may require scheduled endorsements.
Liability coverage protects you if someone is injured in your unit or you accidentally damage another unit. Typical limits start at $100,000 but many owners choose $300,000–$1,000,000. Medical payments provide small, no‑fault payments for minor injuries to guests.
If a covered loss makes your unit uninhabitable, loss of use (ALE) pays reasonable additional living costs—hotel, meals, storage—until repairs are complete, up to policy limits.
Standard HO‑6 policies exclude flood and earthquake. Sewer or sump pump backups are often excluded unless you add a specific endorsement. If you live in a flood or earthquake zone—or in older buildings with shared drainage—you should buy separate flood and earthquake coverage or add sewer backup endorsements.
Ordinance or law coverage (required to bring rebuilt sections up to code) is typically limited or excluded without an endorsement. Wear, maintenance failures, and expected deterioration are not covered. Damage caused by vendors or contractors during renovations may also be excluded unless the vendor’s insurance responds.
Older buildings and poorly maintained common systems (aging piping, HVAC chases, flat roofs) raise the risk of shared losses and special assessments. Associations with chronic deferred maintenance increase the likelihood of uncovered expenses shifting to owners.
Loss assessment coverage in your HO‑6 helps pay your share if the HOA assesses unit owners for a portion of a loss that exceeds the master policy limits, or to cover the HOA’s deductible. It’s triggered when the association levies a special assessment related to a covered peril.
Common endorsements start at $1,000–$5,000 but many advisors recommend $25,000–$50,000 or more depending on building size, reserve health, and regional risk. Review HOA reserves and recent assessment history to choose an appropriate limit.
Inventory renovations and estimate replacement cost for built‑ins, flooring, and upgrades. A contractor estimate or recent renovation receipts help set the dwelling/alterations limit. If the HOA master policy covers “original installations” only, insure all improvements you’ve made.
Personal property limits should reflect the cost to replace all belongings: furniture, electronics, clothing, and specialty items. Typical owners choose $50,000–$250,000 based on contents value. Liability limits are frequently set at $300,000 or $500,000; consider umbrella insurance above $1M for higher net worth.
Higher deductibles lower premiums but increase out‑of‑pocket risk. Also note that HOA master policy deductibles can be assessed to owners. If the HOA’s deductible is high, ensure you have enough loss assessment coverage or liquid funds to cover potential pass‑throughs.
Buy flood insurance if the building is in a FEMA flood zone or if sewer backups are a risk. Purchase earthquake insurance in seismic zones or older structures with shared foundations. These are separate policies or endorsements from specialty carriers.
If you rent out your unit, get a landlord or rental dwelling policy that covers loss of rental income, liability to tenants, and property used for renting. Renters should maintain renters insurance to cover personal property and liability.
Lenders usually require an HO‑6 policy naming the lender as mortgagee with minimum dwelling and liability limits. Proof of insurance is required at closing; lenders may require specific endorsements (e.g., loss assessment). Check lender instructions early to avoid closing delays.
HOAs often require owners to maintain a minimum HO‑6 policy and loss assessment coverage. Review bylaws and CC&Rs for language about required limits, named additional insureds, and insurance certificates to deliver to the association annually.
If you fail to maintain required coverage, the HOA may purchase insurance on your behalf and bill you, levy fines, or place a lien. Mortgage lenders can force‑place insurance (more expensive and with limited coverage) and charge you. Compliance is essential.
For damage originating in your unit or to your contents, file with your HO‑6 insurer. For damage to common areas or building exterior, the HOA files with the master policy carrier. Sometimes both policies interact (e.g., water leak from common piping): both carriers and adjusters coordinate subrogation and responsibility.
If the master policy deductible applies to a building claim, the HOA may assess owners for their share. Your loss assessment coverage or an owner’s HO‑6 may cover those pass‑through costs depending on policy terms.
Typical timeline:
Condo insurance premiums are generally lower than single‑family homeowners policies but vary widely. Typical annual premiums might range from roughly $200 to $1,500+ depending on location, building type, and coverage choices. Urban high‑rise units or coastal areas will trend higher.
Premiums increase with older buildings, histories of water or roof claims, poor HOA reserve funding, high crime area, proximity to flood zones, and inadequate building security. The number of claims filed by the HOA or by individual owners can also raise rates.
Ways to save:
Prepare:
Ask prospective insurers:
Compare price, but prioritize comparable limits and endorsements.
Bundle condo and auto for discounts, maintain a clean claims record where possible, and purchase endorsements that fill real gaps (water backup, ordinance, loss assessment) rather than broad coverage you don’t need.
Yes. The HOA’s master policy rarely covers your personal property or many interior upgrades. Your HO‑6 covers those gaps plus liability and loss of use. Lenders and HOAs also typically require owner policies.
“Walls‑in” refers to interior structural elements and fixed improvements inside the unit. Responsibility depends on the master policy: if the HOA covers “original installations” only, the owner is responsible for upgrades and must insure them.
Possibly. Large claims can deplete reserve funds and lead to special assessments. Loss assessment insurance may help cover your portion of those assessments.
It depends on cause and responsibility. If a neighbor’s negligence causes damage to your unit, their liability insurance may respond. Your HO‑6 typically covers your immediate repairs and contents, then subrogation may recover costs from the neighbor’s insurer.
Review limits and endorsements annually and update after major renovations or purchases. Reassess loss assessment limits if HOA financials change.
Situation: A pipe inside the common stack fails above your unit causing water damage to your ceiling, built‑in cabinets, and several boxes of personal items.
Who pays:
Situation: Storm damages the roof and several common areas; repair estimate exceeds the master policy limit and deductible.
Who pays:
Situation: A kitchen fire in your unit burns cabinets, damages drywall, and ruins furniture and clothing.
Who pays:
Condo insurance (HO‑6) protects your unit’s interior, personal property, liability, and helps cover loss assessments—filling the gaps the HOA’s master policy doesn’t cover. Always read the master policy, buy adequate loss assessment protection, and ensure your dwelling/alterations limit reflects any upgrades you made.
Gather the HOA master policy summary, CC&Rs, a list of unit improvements and receipts, and an inventory of personal property. Contact an insurance agent experienced with condos to compare HO‑6 quotes and endorsements. Keep HOA and insurer contact info accessible.
Condo Insurance (HO‑6): What It Means for Owners
Learn what condo insurance (HO‑6) covers, how it differs from HOA master policies, key endorsements, loss assessment tips, and what to do after a claim.
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