If you own a condominium, you can likely count on the condo association to insure the building and common areas. But the association’s master policy won’t help you if your belongings are stolen or get destroyed in a fire. For those and other potential disasters, you’ll need a personal condo insurance policy, also called HO-6 insurance.
Condo insurance covers what your association’s master policy won’t. This could include replacing a stolen TV or repairing the inside of your unit after a disaster. Condo insurance also offers liability coverage in case your dog bites someone or a guest gets hurt in your home. (Note that some insurers won’t cover certain dog breeds.)
HO-6 insurance is another name for condo insurance. The term refers to one of several home insurance policy forms used industrywide. For example, most homeowners buy HO-3 policies, while renters have HO-4 policies.
As with homeowner's insurance, mortgage lenders generally require you to buy condo insurance. Having this coverage in place protects the lender’s financial interest during the length of your loan.
Even if you’ve paid off your mortgage or bought the property outright, you might still be required to have coverage. Many associations require owners to buy individual condo policies, and they may specify minimum levels of coverage.
Individual condo insurance generally covers your personal belongings and offers financial protection if someone sues you for negligence. Depending on what your condo association’s master insurance policy includes, your individual HO-6 insurance policy may also cover your unit’s interior fixtures and appliances.
Here’s a breakdown of each type of individual condo insurance coverage.
Personal Property Coverage pays to replace furniture and other belongings if they’re stolen or get damaged by an event listed in your HO-6 policy. These “named perils” typically include scenarios like fire, wind and hail.
A standard condo policy may cover valuables such as jewelry, electronics or artwork only up to certain limits. If you have expensive items, you may need to buy extra coverage. (The insurance company will likely ask for an appraisal — a professional assessment of the item’s value — before it will cover a pricey item.)
If you can’t live in your unit because of a covered event, condo insurance may cover hotel bills and other expenses.
Individual condo insurance can help cover liability costs if you’re sued for negligence or damaging someone else’s property. Personal Liability Coverage can also pay costs for a lawsuit if a guest is hurt in your unit or your dog bites someone at the park. Medical payments coverage generally has a lower limit and can pay the medical bills of someone hurt in your unit, regardless of fault.
You may need to insure your unit’s interior with dwelling coverage, also known as building property coverage, depending on your condo association’s master policy. Before buying individual condo insurance, check with your association to see which of the following coverage types applies to its master policy.
