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Is Condo Insurance the Same as HO-6?

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Carl Pash

Carl Pash

Carl Pash is the President of Alliance Insurance of the Rockies and has over 25 years of experience working with insurance claims. Carl has a mission to match customers with the best insurance products through personally getting to know his customers, allowing him to protect their financial security.

You’ve recently purchased a condo, and you need to insure it to satisfy lender requirements or protect your investment. Condo insurance can be complicated since you own the space inside your unit but not the structure itself. During your research, you’ve probably come across terms such as HOA master insurance policy, HO-6 insurance, and condo insurance. If you were left wondering, “Is condo insurance the same as HO-6?,” keep reading to learn more about types of condo insurance.

Alliance Insurance of the Rockies will pair you with one of our licensed insurance brokers who can help you shop for coverage, compare quotes, and protect your belongings. We specialize in home, auto, and renters’ insurance in Colorado. Our passion is ensuring you are adequately protected in an emergency, so contact us if you have any questions about condo coverage.

What is HO-6 Insurance?

A shot of the outside of a white condo building. You can see lots of windows and some balconies with flowers.

HO-6 insurance is the same as condo insurance. Insurance companies classify homeowners’ insurance policies as HO-1 through HO-6. The HO stands for homeowners, and the number designates the type of coverage. HO-2 and HO-3, for example, are common coverage types for a single-family home, whereas HO-4 refers to renters’ insurance. 

An HO-6 policy covers the personal belongings in your condo and walls-in fixtures, such as flooring, cabinets, appliances, and more. You do not need an HO-6 policy if you are simply renting a condo since your landlord is responsible for the structure and fixtures. However, you may want to insure your personal belongings with renter’s insurance.

Is HO-6 Required for a Mortgage?

Many mortgage lenders require an HO-6 policy to issue a mortgage on a condo. This requirement protects the lender’s investment in case of a fire, burst pipe, or other covered peril that could negatively affect the property value. Your condo HOA may also have specific insurance requirements for your unit, so make sure you know what your lender and building require in a policy before you begin shopping. 

HOA Condo Insurance

A good rule of thumb for condo insurance shopping is to request a copy of your HOA’s master insurance policy first to know what’s covered and what needs additional protection. The most common form of HOA insurance covers the exterior of your unit (anything from the walls out) and common areas, such as hallways, rec centers, swimming pools, etc. 

Some HOA insurance will also cover any fixtures that come with the unit, such as floors, bathroom fixtures, and cabinets. However, these policies will not cover any personal belongings or improvements you have made to the unit. This is less common but means you don’t need to purchase dwelling coverage with your HO-6 policy.

What Does Condo Insurance Cover?

Condo insurance offers four primary coverage areas—dwelling, personal belongings, liability, and loss of use. Like homeowners’ insurance, condo insurance protects you financially from theft, accidents, and natural disasters. Let’s dive a little deeper into each area of coverage:

1. Dwelling Coverage

This covers replacing flooring, bathroom fixtures, cabinets, etc., if the interior of your condo is damaged through vandalism or a natural disaster. Depending on your HOA insurance, you may not need dwelling coverage.

2. Personal Belongings

Close up of a couch with three decorative pillow on it. There's a vase on a coffee table in the foreground.

Personal belongings coverage will reimburse you for theft or damage to the stuff you keep inside your condo. Higher-end items may not be covered unless you buy an umbrella policy or add valuable personal property coverage. Items that aren’t typically covered can include jewelry, art, photography equipment, or musical instruments. 

With this type of coverage, you usually need to decide if you want to cover the replacement cost of the items or the actual value with depreciation.

3. Liability

If a friend or visitor gets hurt on your property, liability coverage helps take care of medical bills and legal expenses associated with the incident. Liability also covers situations like your dog biting a neighbor.

4. Loss of Use

Loss of use helps cover living expenses if you cannot live in your condo due to vandalism or natural disaster. Typical expenses include hotel rooms or short-term rentals, eating out, and laundromat services.

What is Not Covered by Condo Insurance?

Like homeowner’s insurance, there are certain disasters that a standard HO-6 policy will not cover, such as: 

  • Floods
  • Earthquakes
  • Termites
  • Mold
  • Sewage back-ups

Make sure you understand what is and is not included in your policy. For example, many carriers offer additional coverage for these types of perils if you are in an area at higher risk for flooding or earthquakes.

How to Get a Condo Insurance Quote

If you are interested in getting a condo insurance quote, start by understanding your lender’s requirements and what your HOA already covers. Then you’ll want to create a personal belongings inventory to help determine how much coverage you need. With this information, you are ready to contact your insurance company or a licensed insurance broker to help compare rates and find the best coverage. 

At Alliance Insurance of the Rockies, we want to ensure that you only pay for what you need, but also avoid huge out-of-pocket expenses in an emergency. We work with some of the nation’s best carriers to find the best coverage for you. Contact us today if you are ready to start exploring condo insurance options or have additional questions.

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