RealManage Insight

Your Complete Guide to HO-6 Insurance

by Katie Vaughan on May 13, 2021 7:55:00 AM

Owning your condo is a wonderful feeling and an amazing achievement. But have you taken home insurance to cover you against factors that are beyond your control? HO-6 is a type of homeowners insurance designed specifically for the needs of condominium owners.

The HO-6 insurance policy is specifically designed for condominium owners. It provides personal property coverage, liability coverage, and specific coverage of improvements to your unit. Your HO-6 policy will cover interior damage to your unit, your personal property, improvements, alterations, and additions you've made. The cost of a condo insurance policy varies depending on your building's location, age, and value of your personal property. 

Why Do You Need an HO-6 Policy Cover?

While your condo association's policy covers the common areas like the parking lot, sidewalks, or hallways, it doesn't cover your belongings or provides you with personal liability coverage if someone is harmed inside your residence. With an HO-6 policy, you will always have peace of mind knowing that your belongings will be replaced when stolen or damaged, and your guests will be taken care of in case of an accident in your condo.

What Does the HO-6 Policy Cover?

Like homeowner's insurance, HO-6 insurance safeguards against liability claims and property losses, except in cases where your condo association's master policy provides coverage. Here are the standard condo insurance coverages:

  • Personal liability covers legal fees such as attorney fees and court charges. This helps if someone sues you because of an accident or incident that occurs in your unit.
  • Personal property coverage pays to replace or repair personal property and belongings such as clothing, furniture, and all electronics if damaged by a covered peril.
  • Single entity coverage covers the interior of your condo, including damage to the walls, fixed appliances, and flooring up to your policy's limit.
  • Liability coverage provides financial protection for you and your family if your guest sustains bodily injury or their property gets damaged while in your unit. It usually covers $100,000 in liability damages.
  • Loss of use coverage will pay you for additional living expenses if your building becomes uninhabitable due to a covered event. Loss of use coverage helps pay for alternative accommodation and meals. 
  • Bare walls coverage includes the floors, walls, and ceilings of the unit but not anything attached to them, such as carpets or light fixtures.
  • Single entity coverage protects the original fixtures and appliances within your condo. It doesn't include any improvements or additions you make.
  • All-in coverage covers all items built into your unit, including cabinets, appliances, and light fixtures, plus any improvements you make to these elements.

Some examples of perils that are commonly covered in the HO-6 condo insurance policies include: 

  • Fires
  • Lightning
  • Riot or civil commotion
  • Smoke
  • Frozen pipes
  • Hailstorms
  • Theft and vandalism
  • Weight of snow and ice

HO-6 Insurance Exclusions

A standard HO-6 policy will have a list of coverage exclusions, but you can purchase separate policies to cover them. 

  • This insurance does not cover floods. If you live in an area prone to flooding, it is advisable to purchase flood insurance.
  • This insurance does not cover earthquakes, sinkholes, or mudslides. 
  • Wear and tear of outdated equipment or property.
  • Damage from termites.
  • Damage from a sewer backup or water from the foundation.
  • The insurance will not cover any damages that may occur if you left your unit vacant for a month or more. That is because of unattended maintenance issues and the risk of break-ins.
  • The insurance policy does not protect your tenant if you rent out your unit. The tenant should be advised to purchase a renter's insurance policy.

How Much Condo Insurance Do You Need?

The amount of condo insurance you get will depend on the value of your personal property. To figure out the amount of personal property coverage you need to replace all your stuff, take a home inventory and consider rounding up to the nearest $10,000 to ensure you have enough coverage.

HO-6 insurance is crucial for every condo owner. It can protect you from liability claims and property losses. To find out more about your condo's community policies, reach out to your community staff.  Contact us today for more information on condo insurance!

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