Condo insurance — the HO-6 policy — covers what your association’s master policy does not: your unit’s interior finishes, your personal property, your personal liability, loss of use, and loss assessments charged to unit owners. The master policy covers the building’s structure and common areas. Where the line falls depends on whether your association’s policy is “bare walls” or “all-in” — read your bylaws before picking dwelling coverage.
What does condo insurance cover?
Condo coverage is split between two policies, and understanding the split is the whole game. Your association buys a master policy for the building; you buy an HO-6 unit-owners policy for everything inside your walls. Here is how the responsibilities divide:
| What needs covering | Association master policy | Your HO-6 policy |
|---|---|---|
| Building structure, roof, exterior | Yes | No |
| Common areas (lobby, pool, elevators) | Yes | No |
| Unit interior (floors, cabinets, fixtures) | Depends on bylaws | Yes — dwelling/“walls-in” coverage |
| Your personal property | No | Yes |
| Your personal liability | No | Yes |
| Loss of use (hotel, meals after a covered loss) | No | Yes |
| Loss assessments charged to owners | No | Yes — loss assessment coverage |
What is the difference between bare walls and all-in master policies?
Association master policies come in two main flavors, and your bylaws or CC&Rs tell you which one you have. A “bare walls-in” master policy stops at the unfinished surfaces of your unit — drywall inward, including flooring, cabinets, and fixtures, is yours to insure. An “all-in” (or “single entity”) master policy covers the unit’s original finishes and built-ins, leaving you responsible mainly for personal property, liability, and any upgrades you have made.
The difference can swing your needed dwelling coverage from tens of thousands of dollars down to nearly zero, which is why the first step of buying condo insurance is reading the master policy summary — not requesting a quote. Ask your association for the current master policy declaration and its deductible: many associations pass large master-policy deductibles down to unit owners, which is exactly what loss assessment coverage exists to absorb.
How much does condo insurance cost?
HO-6 policies are consistently the cheapest way to insure an owned home, because the biggest-ticket item — the structure itself — sits on the association’s master policy. For scale: the national average homeowners (HO-3) premium is $1,411 per year (NAIC, 2021, latest published), with Georgia averaging $1,466, Texas $2,146, and Florida $2,437. A typical condo policy runs at a fraction of those figures since you are insuring interior finishes and contents, not a roof and four exterior walls.
Your premium moves with five inputs: how much dwelling (walls-in) coverage your bylaws force onto you, your personal property limit, your deductible, your building’s location and construction, and whether you add endorsements like water backup or scheduled valuables. In hurricane-exposed states, check for a separate hurricane deductible before comparing quotes.
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What is loss assessment coverage?
When a loss to the building exceeds the master policy’s limits — or falls under its deductible — associations can bill every unit owner a share of the shortfall. That bill is a loss assessment, and standard HO-6 policies include a modest amount of coverage for it, with higher limits available cheaply as an endorsement. Given how large master-policy deductibles have grown in storm-exposed states, loss assessment coverage is the endorsement condo owners most often discover they needed after it is too late. Match your limit to your association’s master deductible at minimum.
Does condo insurance cover floods or earthquakes?
No — like homeowners policies, HO-6 policies exclude flood and earthquake. Flood coverage for your contents and interior comes through a separate policy from the National Flood Insurance Program or a private flood insurer, even if your association carries flood coverage on the building — the master flood policy does not cover your belongings. If your building sits anywhere near a mapped flood zone, price a contents flood policy at FloodSmart.gov before assuming the risk is theoretical.
How do you buy the right condo insurance?
- Read the master policy first. Get the declaration page and bylaws from your association and confirm whether coverage is bare-walls or all-in, and the size of the master deductible.
- Set dwelling coverage to fill the gap. Estimate the cost to rebuild your interior finishes (and upgrades) if the master policy stops at bare walls.
- Inventory your belongings. Walk the unit with your phone camera; set your personal property limit to what replacing everything would actually cost, and decide between actual cash value and replacement cost — our ACV primer explains the difference.
- Match loss assessment coverage to the master deductible. It is one of the cheapest limits to raise.
- Compare at least three quotes. Price the same dwelling, property, liability, and deductible numbers at each company — and re-check whenever your association changes master policies.
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Frequently Asked Questions
Is condo insurance required?
No state law requires HO-6 coverage, but nearly every mortgage lender requires it as a loan condition, and many condo associations mandate it in their bylaws. Even without a mortgage, going without it leaves your interior, belongings, liability, and loss assessments completely unprotected.
What does walls-in coverage mean?
Walls-in (the HO-6 dwelling coverage) insures everything from your unit's unfinished walls inward — flooring, cabinets, countertops, fixtures, and interior walls. How much you need depends on whether your association's master policy is bare-walls (you insure all finishes) or all-in (the master policy covers original finishes).
What is a loss assessment in a condo?
A loss assessment is a bill your association charges every unit owner when a covered building loss exceeds the master policy's limit or falls under its deductible. HO-6 policies include loss assessment coverage to pay your share — set the limit at least as high as your association's master deductible.
Does condo insurance cover water damage?
Sudden and accidental water damage — like a burst pipe — is generally covered for your interior and belongings. Flood water from outside is never covered and needs a separate NFIP or private flood policy. Water backing up through drains needs a water-backup endorsement most insurers sell separately.
What is the difference between condo insurance and renters insurance?
Renters insurance (HO-4) covers personal property, liability, and loss of use only — the landlord insures the building. Condo insurance (HO-6) adds dwelling coverage for your unit's interior finishes plus loss assessment coverage, because as an owner part of the structure and the association's shortfalls are your responsibility.
