Learn more about the most common HO-6 policy coverages, including liability, dwelling, personal property, loss of use, loss assessment, and medical payments to others. When you're ready to get covered, a local independent insurance agent can help you build a policy with the right HO-6 coverage types. Until then, browse condo insurance coverage types below to find out what type of protection you may need.
To protect against the costs of lawsuits, you'll need condo HO6 and liability insurance. Find out more info about getting condo liability insurance here.
What is the condo insurance claims process? We'll tell you more about it and help you get matched with an independent insurance agent here.
Condo Insurance Cost: Rates and Options
It's easy to find affordable condo insurance if you know where to look. We can help you get started and get matched to an independent insurance agent here.
Get answers to some of the most frequently asked questions about condo insurance here, including what it covers, why you need it, how much it costs, and more.
An independent insurance agent can help you score some of these common condo insurance discounts. Find out more information right here.
When shopping for the right coverage for your unique condo, you'll want to compare your options first. An independent insurance agent can help.
A condo association's master insurance policy is needed to provide coverage for common areas and more.
To protect your projects, equipment, team, and business overall, contractors and construction companies need the right kind of insurance.
To protect against financial losses due to fire, you'll need condo fire insurance. Find out more information about getting this coverage right here.
What Is Covered by Condo Insurance?
HO-6 policy coverages can be explained as protection for your personal liability, belongings, guests, damage to common or shared areas, and more. So, what does condo insurance cover? The most common coverage types in a standard condo insurance policy include:
- Dwelling (walls-in) coverage
- Personal property coverage
- Liability coverage
- Loss of use coverage
- Loss assessment coverage
- Medical payments to others
Each of these types of coverage offers essential protection for you and different parts of your condo, as well as shared areas of the building. These coverages are broken down in more detail below.
Dwelling (walls-in) coverage
Wall-in coverage, also known as condo insurance dwelling coverage, protects the unit's interior from the drywall inward. This includes several components of your condo, such as the floors, ceilings, cabinets, fixtures, and post-purchase upgrades. The amount of coverage you need depends on the terms of your HOA's master policy.
Personal property coverage
Condo insurance personal property coverage, also known as contents coverage, protects your personal belongings, such as clothing, furniture, and electronics, both inside your unit and off-premises. Covered perils include fire damage, theft, vandalism, and more. Typical contents coverage limits start at around 50% of your policy's dwelling coverage.
Liability coverage
Condo insurance liability coverage pays for third-party bodily injury or personal property damage claims against you. Coverage can pay for the cost of your legal defense, including attorney and court expenses, and any settlements you're ordered to pay.
Standard liability coverage limits start at $100,000, but can typically be increased to $500,000. You can also add increments of $1 million in excess liability coverage with an umbrella insurance policy.
Loss of use coverage
Condo insurance loss of use coverage, also known as additional living expenses, reimburses you for the cost of hotel stays, takeout meals, and other related expenses if your condo becomes temporarily uninhabitable due to a covered peril, such as a fire. The duration and limits of this coverage vary by policy.
Loss assessment coverage
Condo insurance loss assessment coverage covers the condo unit owner's share when a covered loss exceeds the HOA master policy's limits, and the condo association issues a special assessment. Standard policies include just $1,000 in coverage, though it's commonly recommended to increase this coverage to $25,000-$50,000. An independent insurance agent can help you understand your HOA's condo association insurance.
Medical payments to others
Condo insurance medical payments coverage, also known as MedPay, covers small medical bills for guests who are injured on your property, regardless of fault. This coverage does not extend to other condo residents. MedPay coverage is separate from liability coverage and comes with a lower coverage limit.
How Your HOA Master Policy Affects Your Coverage Needs
It's helpful to understand the difference between the HOA master policy vs. condo insurance. The HOA master policy type determines how much dwelling coverage each individual condo unit owner must carry. It's important to learn whether your HOA's policy is bare walls vs. an all-in master policy.
To determine exactly how much coverage you need, you can request to see your HOA's condo association insurance master policy declarations page.
Bare walls coverage
This is the most limited master policy type and covers only the structure of the condo building and common areas. Each individual condo unit owner is responsible for covering all of their interior features, from the drywall inward, which requires the highest level of condo insurance dwelling coverage in their personal HO-6 policies.
Single entity coverage
This type of master policy covers the structure of the condo building and the original built-in fixtures inside the individual condo units, including original carpet and appliances. However, this coverage does not apply to owner-made upgrades inside the units.
Individual condo unit owners must insure any of the improvements they've made under their own policies. Single entity coverage is essentially the middle ground in the bare walls vs. all-in master policy spectrum.
All-in coverage
This is the most comprehensive HOA master policy type and covers the condo building's structure plus most of the built-in features and improvements inside individual condo units. This type of master policy significantly reduces the amount of condo insurance dwelling coverage needed in each unit owner's HO-6 policy.
Optional Condo Insurance Coverage Types
There are several condo insurance optional coverages and condo insurance endorsements that can be added to a standard HO-6 policy to protect against risks that are typically excluded by default. These perils include flooding, earthquakes, and high-value personal property. Independent insurance agents can help recommend additional condo insurance coverage options based on your location and lifestyle.
Flood insurance
Condo insurance flood coverage isn't included in standard HO-6 policies. Condo owners who live in FEMA-designated flood zones may be required by their mortgage lenders to carry a separate flood insurance policy from the NFIP or a private flood insurance company. Adding flood insurance will increase your overall condo coverage costs, but the amount depends on your location, flood zone, risk level, and more.
Earthquake coverage
Earthquake damage is also typically excluded from standard HO-6 policies and requires a separate policy or endorsement, particularly in seismic zones. Earthquake insurance is one of the key condo insurance optional coverages to evaluate at the time of purchasing your HO-6 policy.
Water backup coverage
Sewer and sump pump backup damage is often excluded by most standard HO-6 policies, but can be added as a condo insurance endorsement option at a relatively low cost. A sewer and water backup endorsement is especially important for units with below-grade spaces or older building plumbing.
Scheduled personal property coverage
Your valuable personal property, including jewelry, fine art, or musical equipment, may not be sufficiently covered by a standard HO-6 policy. That's because valuable items are typically categorized separately in your policy and carry a coverage sub-limit.
You can specifically schedule each valuable item on your policy after having it appraised to ensure it's covered for its full replacement value. Be sure to discuss scheduled floater condo insurance endorsements with an independent insurance agent if you have high-value items.
Identity theft coverage
This optional endorsement covers expenses related to identity restoration services if your identity is stolen. Coverage limits typically range from $15,000 to $30,000 per occurrence, and the endorsement only costs between $25 and $65 to add to your policy each year. This is one of the less commonly added condo insurance optional coverages, but it can help save you a lot of money if you're the victim of identity theft.
What Condo Insurance Does Not Cover
If you've been wondering what condo insurance does not cover, the following perils are typically excluded by most HO-6 policies:
- Flood damage (without flood insurance)
- Earthquake damage (without earthquake insurance)
- Nuclear hazards
- Intentional damage
- Routine wear and tear
- Sewer and sump pump failures and backups (without a water backup endorsement)
Your independent insurance agent can help review your specific policy with you to determine its unique exclusions. They can also help you add any applicable endorsements to your condo insurance to increase your protection.
How to Choose the Right Condo Insurance Coverage Types
To choose the right types of condo coverage in your HO-6 policy, follow the simple steps below:
- Request your HOA's master policy declarations page to determine what type of coverage is already included and how much coverage you need.
- Complete a personal property inventory to determine how much contents coverage is necessary to adequately cover your belongings.
- Assess any location-based coverage needs, such as flood insurance if you're in a flood zone or earthquake insurance if you're in a seismic zone.
- Identify your high-value items, such as jewelry, artwork, or furs, that may need scheduled coverage or endorsements.
- Compare quotes from at least three different condo insurance companies to find the best HO-6 insurance rates.
An independent insurance agent can compare condo insurance quotes from multiple carriers near you to find the most affordable coverage and the best endorsement options.
FAQs About Condo Insurance Coverage Types
What are the standard types of condo insurance coverage?
There are six standard condo insurance coverage types in an HO-6 policy: dwelling (walls-in) coverage, personal property coverage, liability coverage, loss of use coverage, loss assessment coverage, and medical payments to others. An independent insurance agent can help you get set up with a complete condo insurance policy.
What is the difference between bare walls and all-in coverage?
Bare walls vs. an all-in master policy refers to the different HOA master condo association insurance policy types. Bare walls policies cover only the structure, while all-in policies cover the structure plus most interior improvements. The master policy type determines how much condo insurance dwelling coverage each condo unit owner needs.
Is loss assessment coverage required for condo owners?
This coverage isn't legally required but it is strongly recommended. Standard policies include only $1,000 in condo insurance loss assessment coverage, which is rarely sufficient for large association claims. Increasing your coverage to $25,000–$50,000 typically adds very little to the annual premium and greatly extends your protection.
Does condo insurance cover flood damage?
No, condo insurance flood coverage is not included in standard HO-6 policies. Coverage against flood damage requires a separate policy through the NFIP or a private flood insurer. Mortgage lenders may also require flood coverage if you live in a designated flood zone.
How much personal property coverage do I need for my condo?
Condo insurance personal property coverage should reflect the actual replacement value of all your personal belongings. Conducting a home inventory is the most reliable approach to determine how much coverage you need. Most standard contents coverage limits start at $50,000.
What optional coverages should I add to my HO-6 policy?
It's recommended to consider adding flood insurance if you live in a coastal or flood-prone area, increase your loss assessment coverage limits, and add water backup coverage. Condo owners with high-value items may also want to consider scheduled personal property endorsements for valuable items. Condo insurance optional coverages and condo insurance endorsements vary by insurer and location.
Does my HOA master policy cover my personal belongings?
No. The HOA master policy covers common areas and the building structure, not personal property, personal liability, or loss of use inside individual units. Even an all-in master policy does not cover the unit owner's belongings. An HO-6 policy fills these coverage gaps.
Get Help Now from an Independent Insurance Agent Near You
When you're ready to find the right kind of condo insurance coverage, no one's better equipped to help than a local independent insurance agent. These agents have access to multiple condo insurance companies in your area, so they're free to shop and compare quotes, policy options, and discounts.
They'll find the best overall blend of coverage and cost. And down the road, your agent can help you file condo insurance claims and update your coverage when necessary.
Sources
https://www.valuepenguin.com/what-condo-insurance-covers
https://www.thezebra.com/homeowners-insurance/condo-insurance/