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When you buy a condo, the building’s master policy covers the structure, but it stops at your front door, or sometimes at the bare walls. Everything inside is yours to insure. That is what condo insurance, the HO-6 form, is for.
What HO-6 covers
A standard HO-6 policy covers your personal belongings, personal liability, and additional living expenses, just like a renters policy. The part people miss is interior dwelling coverage: the drywall, flooring, cabinets, and fixtures inside your unit that the master policy does not cover.
Whether you need $5,000 or $50,000 of interior coverage depends on your building’s master policy. Under an “all-in” master policy, the building covers original fixtures and finishes, so you need less. Under a “bare walls” policy, you are responsible for everything from the studs inward, and you need more. Ask your HOA for the master policy declarations page before you buy.
What it typically costs
HO-6 policies are cheaper than homeowners insurance because you are not insuring the building’s structure or roof. Typical premiums run a few hundred dollars a year, often in the $200 to $500 range for standard coverage limits, though high-value interiors and coastal buildings cost more. Your HOA dues do not cover your unit’s interior; that is a separate bill you pay yourself.
The loss assessment gap
Here is the coverage most condo owners skip: if the building suffers damage that exceeds the master policy, the HOA can assess each owner for the difference. A special assessment of $10,000 or $20,000 per unit is not unusual after a major event. Loss assessment coverage on your HO-6, usually $1,000 by default and raisable to $25,000 or $50,000 for a few dollars, covers your share.
Water damage between units
Condo water claims are a special headache. Your upstairs neighbor’s burst pipe damages your ceiling. Whose policy pays? It depends on the master policy’s walls-in language and both owners’ HO-6 policies. Water damage rules vary by situation, and condos are where they get most tangled. Make sure your policy covers damage originating from other units.
What lenders and HOAs require
If you have a mortgage, your lender will require an HO-6 policy. Many HOAs require one too, and they may specify minimum liability limits, often $100,000 to $300,000. Check both requirements before you shop so you buy the right limits the first time.
Buying it right
Get the master policy first, then buy interior coverage to fill exactly the gap it leaves. Add loss assessment coverage well above the default. Choose replacement cost on belongings if your budget allows. And review the whole thing if your HOA changes master policies, which can silently shift costs onto unit owners.
Condo insurance is inexpensive precisely because the building carries the big structural risk. Your job is to cover everything the building’s policy does not.
