View INSTANT Quotes

What does an HO-6 Policy Cover?

what does an HO-6 policy cover

If you own a condo, then you most likely have some kind of HO-6 insurance policy.

HO-6 policies, also called condo insurance, are specifically designed for insuring single-unit condos and providing liability coverage. If you own a condo but do not have HO-6 insurance, then your condo can be at great risk. We are going to cover HO-6 insurance and talk about what it covers and whether or not you should consider purchasing it.

 

What Is an HO-6 Policy?

 

HO-6 policies, also called condo insurance, protect your condo unit and provides liability coverage and additional living expense coverage. HO-6 policies are sometimes referred to as “walls-in” coverage because they protect your specific individual unit while the building’s master policy handles damage to any common areas. In fact, HO-6 policies are normally the only insurance policy available to condo owners.

Before talking about HO-6 policies specifically we need to talk about how insurance for condos, in general, works.

 

HOA and Master Policies

 

Typically, the common areas in a condominium building are covered by some kind of homeowner’s association insurance (HOA). The HOA policy covers any damages to common areas, such as the room, exterior, hallways, or elevators. HOA policies are purchased by several condo owners and are sometimes called “master policies” because they apply to the overall condominium building and everyone contributes.

However, master policies do not necessarily cover individual units. Most of the time, master policies will not reimburse condo owners for damages to their specific unit. That is where HO-6 policies come in. HO-6 policies are meant to protect specific condo units and can cover any damages that are not covered by your condo association’s master policy.

 

Condo master policies can be two types:

 

  • “All in” which covers any fixtures, wiring, and plumbing in your condo, but not your personal possessions.
  • “Bare walls” policies that only cover common areas, exterior walls and the roof but not anything within your specific unit.

 

The kind of master policy you have determines how much condo insurance you should buy. If your master policy is a bare walls policy then you will have to buy more condo insurance than if it were an “all-in” policy.

 

What Does an HO-6 Policy Cover?

 

HO-6 policies include coverage for dwelling damages, personal property, liability, loss of use, and loss of assessment coverages.

 

Dwelling Damages

 

HO-6 policies usually cover any damages to your individual units, such as walls, fixtures, appliances, plumbing, carpets, and wiring. In general, HO-6 policies can cover anything related to your unit’s dwelling structure that is not already covered by your condo association’s master policy.

HO-6 policies are named-peril policies so they only cover damages caused by the specific perils listed in the insurance agreement. HO-6 condo insurance covers 16 named perils:

  • Fire or lightning
  • Riot or civil commotion
  • Smoke
  • Volcanic eruption
  • Electrical currents
  • Water or steam damage
  • Windstorm and hail
  • Aircraft
  • Cracking and bulging or house systems
  • Vandalism
  • Explosions
  • Vehicular damages
  • Freezing
  • Weight damage from ice, snow, or sleet

 

If your condo is damaged by something on this list and it is not already covered by your HOA policy, then an HO-6 policy should cover it. Keep in mind that condo insurance usually offers fewer protections than standard homeowner’s insurance. That is because some things are expected to be covered in your condo association’s master policy.

 

HO-6 policies only cover things that are “fully owned” by the person who buys the policy. Usually, condo owners only fully own the interior of their condos. They may pay for pool and gym memberships but they do not own these things. As such, HO-6 policies will only cover the things on the immediate interior of your condo, and may not cover some things like air systems, heating-cooling, or mailboxes.

 

Personal Property

 

Whether you have an all-in or bare-walls policy you will need HO-6 insurance to cover your personal property. Personal belongings include things like your bed, clothing, TV, furniture, and any other things that are not a permanent fixture of your condo.

Personal property coverage on HO-6 policies is also on a named-peril basis. The 16 included perils are the same ones included in the dwelling coverage section. Typically, your policy will have a property limit that is an upper amount of how much your insurance will cover. So if it’s $50,000 then your insurance will cover up to $50,000 of lost or damaged property.

Insurance policies also have sub-limits on coverage for certain types of items. One example is jewelry. Many insurance companies will only insure up to a certain amount of jewelry, even if it is lower than the stated total property coverage amount.  So your coverage may offer $50,000 in broad protection but only insure jewelry up to $5,000. So if $7,000 worth of your jewelry is stolen, then your policy will only cover $5,000, even if the broad coverage limit is higher.

Most companies will, however, allow the policyholder to schedule personal property subject to sub-limits like jewelry, furs, art, guns, and collections. When you schedule your personal property, that property is typically insured for the appraised value of the item and subject to a lower deductible than the personal property deductible in the policy.

 

Liability

 

HO-6 policies also give you liability protection from events that occur in your condo. So if someone is injured in your condo the liability insurance will cover any legal fees you may incur and any damages you may have to pay. For example, if your policy has $100,000 in liability coverage, it will cover up to $100,000 in legal fees and damages.

 

Medical Expenses of Others

HO-6 insurance will also provide coverage in the case of other medical expenses. If a person is hurt on your property your policy will cover their medical costs. Medical expenses coverage by the policy includes things like:

  • Surgical costs
  • Diagnostic tests
  • Lab work
  • Hospital care
  • Administrative fees
  • Medication costs

Medical cost coverage is separate and distinct from liability coverage. You cannot use one to cover the other. Medical cost coverage depends on the specific policy but usually maxes out at a few thousand dollars and liability does not have to be established for a claim to be made.

 

Loss Assessment

 

Loss assessment coverage is unique to condo insurance. Loss assessment coverage is meant to pick up any extra costs that your master policy does not cover. For instance, if a fire breaks out in the hallway and the total damage exceeds the master policy. Loss assessment coverage is meant to make up that difference. It is usually an optional addition to HO-6 policies but many condo associations require unit owners to carry this coverage.

 

Additional Living Expenses

 

HO-6 policies will also cover any additional living expenses incurred because of a disaster. If you must temporarily relocate while your condo is under repair after a covered loss,  the additional living expense coverage will cover any of your expenses like hotel or Airbnb costs. Additional living expenses typically have a maximum defined by duration and amount.

 

Use our Map to Find the Best Homeowner’s Rates in Your State!

 

 

Should I buy HO-6 Insurance?

 

If you are not already required to have it by your condo association, then you should definitely buy HO-6 insurance for your condo. Even if your condo association has an “all-in” master policy that covers all dwelling damage, you still need HO-6 insurance to protect your personal property. HO-6 condo insurance is designed to fill the gaps in specific coverage that HOA policies don’t have.

If you are looking for condo insurance, consider using our insurance lookup tool. You can compare and contrast different quotes for the most reputable providers so you can find a plan that works for you.

 

Get Great Rates Fast!
For more information about Condo insurance, please contact us through our website or call 800-712-8519 during normal business hours.

 

Frequently Asked Questions

What does an HO-6 policy cover?

HO-6 policies include coverage for dwelling damages, personal property, liability, loss of use, and loss of assessment coverages.

What is an HO-6 policy?

HO-6 policies, also called condo insurance, protect your condo unit and provides liability coverage and additional living expense coverage. HO-6 policies are sometimes referred to as “walls-in” coverage because they protect your specific individual unit while the building’s master policy handles damage to any common areas. In fact, HO-6 policies are normally the only insurance policy available to condo owners.

Do I need an HO-6 policy for my condominium?

HO-6 policies, also called condo insurance, are specifically designed for insuring single-unit condos and providing liability coverage. If you own a condo but do not have HO-6 insurance, then your condo can be at great risk.

Leave a Reply

Your email address will not be published. Required fields are marked *