What is HO-6 insurance for condos?
Condo insurance is also called "HO-6 insurance." It may cover liability claims, damage to your condo unit and belongings, and additional living expenses if you're unable to stay in your residence due to a covered incident. Condo insurance generally won't cover common areas like hallways, sidewalks, and parking lots. Your condo or homeowners association is responsible for insuring those areas. A condo policy may also insure townhomes, rowhomes, and subdivisions that aren't classified as condominiums.
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What does condo insurance cover?
HO-6 insurance works like homeowners insurance. It may protect against property losses and liability claims. Here are the standard condo insurance coverages:
Dwelling
Dwelling coverage may pay to repair or replace everything in your unit from the drywall in, if your property is damaged due to a covered peril like fire, lightning, windstorms, hail, or the weight of ice, snow, and sleet.
Personal property
Personal property coverage pays to repair or replace your belongings, up to specified limits. Anything that isn't attached to your condo is considered your personal property, including clothing, furniture, and electronics — and therefore your responsibility to insure. Note that some condo insurers combine dwelling and personal property coverages.
Covered perils that may cause damage to your personal property often include fire, severe weather, power surges, vandalism, and more. Theft of your personal belongings may also be covered up to your coverage limits, even if the items were stolen while in a storage unit or vehicle.
Personal liability
If you're legally responsible for someone else's damages or injuries, personal liability provides coverage up to the limits of your HO-6 policy. Liability coverage may also pay for medical bills resulting from an accident in your condo unit.
Loss of use
Loss of use coverage may pay for additional living expenses if you have to leave your condo because of a covered incident. It can help pay for meals, above what you normally pay, and a hotel stay, up to your policy's limit.
Loss assessment
Loss assessment coverage is often an optional endorsement, or "add-on," and can help if there's an accident in a shared area of your condo complex, such as stairwells, hallways, or clubhouses.
While your association's master policy may cover incidents in shared areas, loss assessment coverage may pay for the damage that exceeds the limit of the association's master policy. Condo policies may provide loss assessment coverage up to a specified limit (sometimes $1,000). But, depending on your insurer, you may have the option to purchase additional coverage.
What's not covered under condo insurance?
Your HO-6 insurance policy will have a list of coverage exclusions that aren't covered, such as:
Condo insurance also won't cover damage to shared areas of your condo complex, including any property your condo association owns. The master policy for your condo association covers shared spaces. This includes areas like your building's stairwell and party center.
What is HOA insurance?
Your homeowners association (HOA) is responsible for carrying a master insurance policy to insure the common areas of your condo development. The master HOA policy protects against damages or injuries that occur in the shared spaces at your complex. This might include meeting rooms, swimming pools, and tennis courts.
Your HOA fees usually include part of the cost for a master policy. Coverage eligibility depends on your condo association's master policy.
Types of HOA insurance
Here are the three types of master insurance policies for condos:
All-in coverage:
This is the most comprehensive type of coverage, also called "all inclusive." It covers all property in your development and fixtures in your unit. You only need to insure your personal belongings.
Bare walls coverage:
This covers shared areas and property owned by the condo/homeowners association. Bare walls coverage doesn't include interior walls and fixtures in your unit.
Single-entity coverage:
Single-entity coverage may offer protection for common areas and association-owned property, including fixtures in your unit from when the structure was originally built, unlike bare walls coverage.
HOA insurance vs. HO-6 insurance
"All-in" master policies usually cover more than just the bare structure of your condo. However, there are key differences between an association master policy and HO-6 insurance:
| Master insurance policy | Condo (HO-6) insurance policy |
|---|---|
| Outdoor spaces: Parking lots, garages, and sidewalks | Condo (HO-6) insurance policyIndividual unit areas: Floors, inner walls, plumbing, electrical, carpeting, cabinets, and other built-in fixtures |
| Recreational areas: Tennis courts, golf courses, swimming pools, party centers, and meeting rooms | Condo (HO-6) insurance policyPersonal belongings: Furniture, clothing, kitchenware, and electronics |
| Common spaces: Hallways, staircases, and elevators | Condo (HO-6) insurance policyValuables: Jewelry, art, and other valuables at specified limits |
How much condo insurance do you need?
Your coverage and limits depend on your condo association's master insurance policy and how much protection you need for your unit, belongings, and assets.
| Coverage type | Coverage limit |
|---|---|
| Dwelling | Coverage limitIf your association's policy features "all-in" coverage, you may not need as much dwelling coverage. However, if your master policy indicates "bare walls" coverage, you'll need dwelling coverage for appliances, carpeting, and other fixtures. |
| Personal property | Coverage limitTo find the right limit for personal property coverage, create a home inventory. For example, if your belongings total $75,000, you need at least that much in coverage. Keep in mind, limits and options will vary by insurer. |
| Liability | Coverage limitChoose a limit that protects your assets. Add up the value of your bank accounts, investments, retirement savings, and the equity in your condo and other property. Most condo insurers offer a minimum coverage limit of $100,000 and a maximum of $500,000. If you need more than $500,000 in liability coverage, consider purchasing umbrella insurance. |
| Loss of use | Coverage limitInsurers often set your loss of use coverage limit at 20% of your combined dwelling and personal property coverage amount. For example, if you have a $70,000 limit for dwelling and a $30,000 limit for personal property, you could get up to $20,000 on a loss of use claim. |
How much is condo insurance?
Several factors can affect your condo insurance cost. These may include location, claims history, fire safeguards, credit score, coverage choices, deductibles, and the condition of your unit. You may lower the cost of your condo policy with condo insurance discounts.
Is condo insurance required?
If you have a mortgage on your condo, your lender will likely require an HO-6 policy. Your homeowners or condo association may also require certain coverages and limits. Even if your condo association has no stipulations or your condo is paid off, condo insurance may help protect what may be your most valuable asset as well as your personal belongings.
How to get condo insurance through Progressive
Get a condo insurance quote online or call for advice
Learn more about condo insurance policies.
