What Is HO6 Insurance?
HO6 insurance, also called condo insurance, is a type of homeowners insurance that’s designed to address the specific needs of condo owners. Unlike single-family homeowners, condo owners usually don’t have to insure the entire building where the home is located or other structures on the property. That’s why you might sometimes hear HO6 referred to as “walls-in coverage” – it’s designed to protect your individual unit’s interior. Your condo association’s master policy typically covers the outside of the building and other common areas.
HO6 insurance steps in to pick up where the HOA’s master policy leaves off, meaning it protects the walls and ceiling of your unit, its floors, and all its contents.
It also protects you – your liability for injured guests, your additional living expenses if the unit becomes uninhabitable, and more. Let’s take a closer look.
What Does an HO6 Policy Cover?
A standard HO6 policy offers the following types of coverage:
- Dwelling coverage. This protects your individual unit from the walls-in. It can help pay to repair or replace damaged walls, ceilings, floors, additions, and more.
- Personal property coverage. This covers the belongings that make your condo a home: furniture, cabinets, appliances, clothing, decor, and more.
- Loss of use coverage. If a covered claim makes your home uninhabitable, this can help pay for additional living expenses (think: takeout, a hotel stay, etc.).
- Personal liability coverage. If someone is hurt in your condo or you accidentally cause damage to someone’s property, this can help pay for legal expenses.
- Medical payments coverage. This helps cover small medical expenses when a guest has an injury in your home.
All Kin HO6 insurance policies offer open-perils coverage for the dwelling. That means we can cover damage from an incident that isn’t listed in the policy as an exclusion. In other words, a lot of incidents are covered – hurricane wind damage, fire, theft, vandalism, and more.
However, the following types of damage are usually excluded:
- Earth movement, such as an earthquake, sinkhole, and mudflow.
- Water damage from flood, sewer backup, or water seeping in through the foundation.
- Demolition of your home required by law to bring it to code.
- Seizure or demolition by a government agency or public authority.
Our HO6 policies also include $2,000 in loss assessment coverage (also called special assessment coverage). This helps pay for shared losses that condo owners are responsible for. For example, say there’s a fire in the courtyard of your building and the condo association didn’t set enough funds aside to cover it. They may call for a special assessment, which divides the excess expense among all units to make up the difference.
Loss assessment insurance can help pay for this unexpected expense, so long as the damage was caused by a covered incident.
What HO6 Insurance Doesn’t Cover
Just like most homeowners insurance policies, condo insurance doesn’t cover flood damage. It also doesn’t cover the whole building your unit is in. That’s because your condo association’s master policy is responsible for that.
How your condo association divides up insurance responsibilities matters – a lot. It determines how much HO6 coverage you need.
Your condo association or homeowners association usually has a master insurance policy to cover the building itself, including the roof, and common areas, like courtyards, fences, elevators, and hallways. Your HOA fees help cover the cost of this policy.
Generally speaking, there are three types of condo master policies:
- Bare walls coverage. This is the most limited option for a master insurance policy and typically very common. It primarily covers the structure – including the exterior, roofing, framing, wiring, piping, insulation, and the drywall itself. It also covers common areas, like entryways.
- Single entity coverage. In addition to bare walls coverage, this covers built-in fixtures in individual condo units (think cabinets).
- All-in coverage. This is the most comprehensive of the three options. In addition to covering the structure, shared property, and built-in fixtures in individual units, it also covers individual condo unit improvements and additions.
HO6 vs HO3: What’s the Difference?
The nice thing about being a condo owner is that you have a little help with caring for the building that houses your home – and your dwelling coverage reflects that.
|All-perils & replacement cost coverage for the dwelling||Yes||Yes|
|Individual’s insurance covers full structure||No, the condo association’s master policy usually covers the walls out||Yes, the homeowner is responsible for insuring the entire structure|
|Covers other structures||No, the master policy covers shared structures||Yes|
|Covers contents inside the home||Yes||Yes|
|Covers loss of use||Yes||Yes|
|Covers personal liability||Yes, though the master policy would handle incidents in common areas||Yes|
|Covers medical payments||Yes||Yes|
Whereas the owners of single-family homes have to insure everything on their own – the entire house, garage, fences, and other structures – condo owners only have to cover the walls-in of their unit. Your condo association’s master policy will usually cover everything outside the walls of your unit.
That’s why your condo’s dwelling coverage limits may be much less than what you paid for your unit. The condo association’s policy is essentially splitting the dwelling insurance burden with you.
Personal liability is another area where the difference between HO6 vs. HO3 is stark. If someone is hurt in the driveway of your single-family home, you’re liable for the injury and subsequent medical expenses.
But if that injury happens in your condo building’s courtyard? The master insurance policy would likely have to cover the incident.
What Does HO6 Insurance Cost?
The cost of your HO6 insurance depends on your condo’s location, its safety features, the limits and deductibles you choose, and other factors. That said, our condo insurance costs start at $752 a year or $62 a month in Florida.
You might qualify for additional discounts, too. We offer discounts and credits for:
- The building’s wind mitigation
- Smart home security systems
- Mature condo owners
- Responsible Repair (i.e., opting to not sign away your claims benefits to a third party)
- Opting for an electronic policy (we’re all about saving those trees!)
How Much HO6 Insurance Do You Need?
The amount of HO6 insurance you need mostly depends on how many belongings you have and the quality of your furniture and fixtures. As a very loose guide, this is about how much coverage you might want to carry:
- Dwelling: Your unit’s interior should be insured up to its replacement cost. This may be lower than what you paid for it because your condo association’s master policy covers the exterior.
- Personal belongings: It’s usually smart to have about 20 to 50 percent of the coverage you have for your dwelling for your belongings. So if you have $75,000 in dwelling coverage, that would be $15,000 to $37,500 in personal property coverage.
- Loss of use: Typically this coverage should be about 20 percent of the coverage you have for your dwelling.
- Personal liability: Kin’s standard coverage limits are $100,000 but can be increased.
- Medical payments: Our condo policies automatically include $1,000 in coverage, but you can add more.
How to Get HO6 Insurance
Getting a condo insurance online is super easy. Just type in your address and we’ll work our magic.
In some cases, we might need two documents to get your coverage squared away:
- A copy of your condo’s wind mitigation inspection.
- A copy of your condo association’s bylaws (it will spell out what your insurance obligations are).
It’s really that easy! See for yourself.