HO-6 is home insurance for owners of co-ops or condominiums. It provides personal property coverage, liability coverage and specific coverage of improvements to the owner’s unit. Typically the owner’s condo or co-op association provides insurance that covers the outside of the dwelling (structure). 

Condo insurance is important to have though since your association’s policy will not cover your belongings or provide you with personal liability coverage if someone is harmed inside of your residence.

An HO-6 policy will cover interior damage to your unit, improvements, additions and alterations you’ve made and your personal property. Additional living expenses, if your residence is not able to be lived in due to a covered peril, are usually also included. The condo association’s policy typically covers the outside building structure and commons areas, such as hallways.

HO-6 insurance is designed to coordinate coverage with your condominium or cooperative’s master policy.

Consider extra coverage, for valuables, such as jewelry, fine art or fancy computer equipment. Depending on where you live, you might also need additional coverage for earthquakes, flooding or windstorms. Discuss with your insurance agent or insurance company your needs to make sure you purchase the right amount of coverage.

Standard coverage doesn’t vary much from one company to the next for an HO-6 policy, but rates and customer service do, so it’s important to shop around for home insurance quotes from at least three different companies.

To learn more about HO-6 or other types of homeowners insurance, read about home insurance basics.

Key Takeaways

  • An HO-6 policy will cover your unit’s interior, improvements you’ve made to the building, any additions or alterations and all your personal property.
  • The condo association master policy is there to protect the building and its inhabitants. This includes general liability for the association and property damage coverage for common areas.
  • The condo insurance cost nationwide is $625 on average with a $1,000 deductible, $300,000 in liability and $60,000 in personal property coverage.

What does condo(HO-6)insurance cover?

A standard HO-6 condo insurance policy covers several things.

  • Interior damage to your unit
  • Improvements, additions and alterations you’ve made to the interior of the unit
  • Personal property
  • Liability
  • Additional living expenses/loss of use
  • Loss assessment coverage

Consider extra personal property coverage for valuables, such as jewelry, fine art or fancy computer equipment.

We also recommend additional liability coverage to protect you if someone or their property is injured while visiting and sues you for damages.

Depending on where you live, you might also need additional coverage for earthquakes, flooding or windstorms. Discuss with your insurance agent or insurance company your needs to make sure you purchase the right amount of coverage.

Perils covered by an HO6 policy

Under the general terms of HO-6 condominium owner coverage, your policy should cover your personal property from 16 perils:

  • Fire or lightning
  • Windstorm or hail
  • Explosion
  • Riot or civil commotion
  • Damage caused by aircraft
  • Damage caused by vehicles
  • Smoke
  • Vandalism or malicious mischief
  • Theft
  • Volcanic eruption
  • Falling objects
  • Weight of ice, snow, or sleet
  • Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance.
  • Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system.
  • Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance.
  • Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component)

What does the condo association master policy cover?

A basic condominium master policy covers two things:

  • General liability for the association
  • Property damage coverage for the common areas

But what areas are covered by the master policy? Condo associations will typically choose between these three types of coverage:

  • Bare walls – limited to the basic structure of the building, including fixtures and furnishings collectively used
  • Single entity – cover the building structures, common areas and fixtures in individual units, but not personal property or improvements
  • All-in or all-inclusive – cover the structure plus fixtures in individual units and additional upgrades made by you or a previous owner.

How much does condo insurance cost?

The cost of condo insurance depends on many factors, such as where you live and how much coverage you need.

The average condo insurance cost nationwide is $625, for $60,000 in personal property coverage, with a $1,000 deductible, and $300,000 in liability.

Florida has the highest condo insurance rate on average, $1,293. The weather is a major factor in those costs. The Sunshine State is prone to hurricanes and strong storms. Insurers view condos in that state a higher risk than say Iowa, Wyoming, Vermont and North Dakota, which have the lowest average condo insurance rates.

You can’t completely offset higher rates in your state, but you can lessen the blow by shopping around. Get quotes for the same level of coverage from at least three home insurance companies. Make sure you ask about discounts, including bundling discounts.

How much HO6 condo insurance do I need?

The amount of condo insurance coverage you’ll need depends on what the condo association master insurance policy covers. If the master policy is a bare walls policy, you’ll need more coverage. But, if the condo association’s insurance is an all-in or all-inclusive policy, you may not need quite as much coverage. Determining how much condo insurance you’ll need can get tricky for this reason.

We recommend speaking with your insurance agent to discuss the master policy and what you need in an HO6 policy to fill all the gaps.

What is the difference between HO-3 and HO-6 insurance?

Unlike HO6 for condominium owners, an HO3 policy is a standard homeowners insurance policy. Here are some of the main differences between an HO3 and an HO6 insurance policy.

Difference pointsHO-6HO-3
Who needs itCondo ownersHomeowners
Dwelling coverageInterior onlyInterior,exterior and other structures
Personal property coverageCovered for named perilsCovered for named perils
Liability coverageCoveredCovered
Medical payments coverageCoveredCovered
Loss of use coverageCoveredCovered
Loss assessment coverageSometimes coveredN/A
RequiredRequired by lenders,sometimes required by condo associations.Required by lenders
Dwelling value payoutReplacement costActual cash value