What is HO6 Condo Insurance? HO3 vs HO6 Explained
Condo ownership means that while you own your own individual unit, you share responsibility for the building and common areas with fellow residents. So when it comes to insuring a condo, there can be unique challenges — ones that differ from traditional homeownership. That’s where HO6 condo insurance comes in.
Condo insurance, also called an HO6 policy, aims to protect your unit and personal belongings. A separate master policy maintained by your condo association will typically protect the common areas and the building itself.
Knowing exactly what HO6 insurance covers—and doesn't cover—empowers you to make smart choices about safeguarding your condo investment. Let's explore this specialized insurance policy, designed specifically for condo owners like you.
What is HO6 Condo Insurance?
HO6 insurance, also called condo insurance or condominium insurance, protects condo and co-op unit owners from financial losses related to the interior of their property.
This coverage is specifically for units in condominium buildings and is not for townhomes, which would typically use a standard HO3 homeowners policy.
Unlike standard home insurance, HO6 policies focus on "walls-in" coverage—protecting everything inside the unfinished walls of your unit. Your condo association's master policy typically covers the building’s structure and common areas.
In short, HO6 policies acknowledge your dual role as an individual unit owner and part of a larger community with shared responsibilities — and aims to bridge the gaps between the condo association's coverage and your personal property.
Why Do Condo Owners Need HO6 Insurance?
Your condo association's master policy typically stops at your unit's unfinished walls (often dictated by Statute and association bylaws), leaving your personal belongings, interior structures, and liability risks unprotected without proper HO6 coverage.
Most mortgage lenders require condo insurance before approving your loan. However, even if you own your condo outright, your association likely mandates minimum insurance requirements for all unit owners.
Beyond these requirements, HO6 insurance safeguards your investment. Condos are a major financial commitment, and proper insurance protects your property and financial future.
HO3 vs HO6: Understanding the Difference
Condo owners need different insurance than traditional homeowners due to the unique ownership structure of condominiums. Here's how HO3 homeowners insurance and HO6 condo insurance compare:
| Coverage Area | HO3 (Homeowners) | HO6 (Condo) |
|---|---|---|
| Dwelling | Covers the entire home structure | Covers interior walls, flooring, and fixtures |
| External structure | Covers roof, exterior walls, foundation | Typically covered by the association's master policy |
| Personal property | Covered | Covered |
| Liability protection | Covered | Covered |
| Common areas | N/A | Covered by the association's master policy |
HO6 policies focus on protecting what you personally own and are responsible for within your condo unit, and HO3 policies provide more comprehensive coverage for standalone homes where the owner bears responsibility for all aspects of the property.
What Does HO6 Condo Insurance Cover?
Standard HO6 condo insurance includes several key protections designed specifically for unit owners. These coverages work together to create a safety net for your investment and personal belongings.
Dwelling Coverage
Dwelling coverage protects the physical structure of your unit, typically from the walls inward. This includes:
- Interior wall finishes, flooring, and ceilings
- Built-in cabinetry and fixtures
- Electrical and plumbing systems within your unit
- Any betterments and/or improvements or upgrades you've made
For example, if a pipe bursts and damages your hardwood floors and kitchen cabinets, dwelling coverage helps pay for repairs. The amount of dwelling coverage you need in your HO6 condo insurance policy will depend on your unit's size, finishes, and the extent of your condo association's master policy, often dictated by Statute and association bylaws.
Personal Property Coverage
Personal property coverage within your HO6 policy shields your belongings—furniture, clothing, electronics, appliances, and other items you own. If these items suffer damage from covered perils like fire, theft, or water damage, your insurance helps replace them.
For valuable collections or high-end items like jewelry or artwork, you might benefit from additional scheduled personal property coverage. Standard policies often have limits for certain categories of items, but you can customize and extend your coverage to ensure adequate protection for your most cherished possessions.
Personal Liability Coverage
Personal liability coverage provides financial protection if someone suffers an injury in your unit and you're found legally responsible. For instance, if a guest slips on your wet kitchen floor and gets hurt, liability coverage within your HO6 policy would help with medical bills and your legal expenses if they sue.
Loss of Use Coverage
When your condo becomes uninhabitable due to a covered event, loss of use coverage can help cover the costs of additional living expenses. This might include:
- Hotel or temporary rental costs
- Additional food expenses
- Pet boarding fees
- Transportation costs
For example, if smoke damage from a fire makes your unit unlivable during repairs, this coverage helps maintain your normal standard of living while you're displaced.
Loss Assessment Coverage
Loss assessment coverage shields you from unexpected financial obligations passed down from your condo association. If the association's master policy falls short after a major loss or shared property damage, the association may assess each owner a portion of the uncovered costs.
For instance, if a storm damages your building's roof and the repair costs exceed the association's policy limits, each owner might receive a bill for their share. Loss assessment coverage helps pay your portion of these unexpected expenses.
What Does HO6 Insurance Not Cover?
Standard HO6 insurance policies have specific exclusions and coverage limits. Understanding these gaps will help you determine if you need additional protection.
Common exclusions in HO-6 policies include:
- Flood damage (requires separate flood insurance)
- Earthquake damage (requires separate earthquake coverage)
- Normal wear and tear or maintenance issues
- Certain water damage scenarios (like sewer backups)
- Damage to association property or common areas
Optional coverages can fill many of these gaps, allowing you to customize your policy based on your region's risks and personal concerns.
Your Condo Association's Master Policy
Remember, too, that your condo association will maintain a master policy that covers the building structure and common areas outside of your unit’s walls. Reviewing this policy is another way to identify gaps in your personal coverage.
Master policies from a condo association generally fall into three categories:
| Policy Type | What's Covered | What You Need to Cover |
|---|---|---|
| Bare Walls | Building exterior, common areas | All interior unit components, including fixtures, appliances, and flooring |
| Single Entity | Building exterior, common areas, original fixtures | Your unit’s belongings, upgrades, and improvements |
| All-In | Building exterior, common areas, fixtures, and improvements | Your personal belongings only |
Checking your association's policy details helps determine the appropriate level of dwelling coverage for your HO6 policy, ensuring you're not paying for redundant coverage or leaving gaps in protection.
Be sure to check if your state has specific controlling statutes applicable to condominiums as they may override any policy condition.
How Much HO6 Insurance Do You Need?
Several factors — including your unit's size, finishes, and upgrades — will influence the amount of dwelling insurance you need. . Consider what it would cost to rebuild your unit's interior to the same standard after a major loss.
To determine your needed personal property coverage, create a home inventory to assess the value of your belongings. The standard recommendation is coverage equal to at least 50% of your dwelling coverage.
For liability protection, consider your assets and exposure to risk. Standard policies start at $100,000, but increasing to $300,000 or $500,000 provides stronger protection for a relatively small additional cost.
Customizing these coverage levels ensures you have adequate protection without paying for unnecessary coverage. But you don’t have to do it alone — a licensed insurance agent can assess your specific situation and help recommend appropriate limits.
Common Questions About HO6 Insurance
What does HO6 mean?
HO6 is the insurance industry's designation code for a standardized condo insurance policy, with "HO" meaning "homeowners" and "6" denoting the specific policy form for condominiums.
What is the main difference between HO4 and HO6?
HO4 (renters insurance) covers personal belongings and liability for tenants who don't own their units, while HO6 (condo insurance) covers the unit's interior structure, personal property, and liability for condo owners.
Does HO6 cover roof damage?
HO6 typically doesn't cover roof damage since the roof is considered part of the building's exterior and is usually covered by the condo association's master policy.
Does HO6 insurance cover water damage?
Standard HO6 policies cover certain types of water damage, such as from burst pipes or appliance malfunctions that are sudden and accidental. However, they typically exclude flood damage and may have limitations or optional endorsements for sewer backups.
Does HO6 cover drywall?
Yes, HO6 insurance covers drywall within your unit as part of the dwelling coverage, which protects the interior structure from the walls inward.
Do I need special coverage for hurricane-prone areas like Florida?
In coastal areas like Florida, standard HO6 policies may have separate limitations or deductibles for hurricane damage. Additional coverage options help address these regional concerns without leaving gaps in protection.
What happens if I rent out my condo?
If you rent your condo to tenants, you'll need a landlord policy rather than standard HO6 insurance. These policies provide appropriate coverage for rental situations.
Customizing Your HO6 Policy for Your Needs
HO6 policies adapt to your specific situation. When personalizing coverage, consider your unit's value, personal belongings, and regional risks.
Add protection where it matters most to you, whether that's increasing personal property limits for valuable collections or adding special coverage for regional hazards like hurricanes. And, you can reduce coverage in areas that don’t apply, to keep your premiums manageable.
Slide creates personalized condo homeowners insurance that fits your needs and budget. Our flexible HO6 policies allow you to tailor protection for your condo, rather than settling for one-size-fits-all coverage.
How to Get HO6 Insurance
Securing the right condo insurance involves a few simple steps:
- Review your association's master policy to understand what's already covered.
- Assess your personal property value and dwelling coverage needs.
- Consider your liability risks and appropriate coverage levels.
- Explore optional coverages for any specific concerns.
- Get policy quotes and compare coverage options.
Slide makes getting condo insurance simple, with options to purchase directly online or through our network of local agents. Whichever method you choose, we provide clear guidance throughout the process, ensuring you get protection that fits your needs and budget.
Make Your Condo Coverage Work for You
With the right HO6 policy, a condo owner gains peace of mind knowing their investment is protected. Slide's exceptional financial stability means we'll be there when you need us most, with flexible options throughout the claims process that put you in control.
Ready to protect your condo with coverage that fits your needs? Get started with your personalized quote from Slide today and discover how easy it can be to secure the right protection.