Condo Insurance (HO-6) Explained: What You Cover vs the Association

Full transcript

I. The price gap

The NAIC averages show why. Homeowners insurance, the H O three form, averages one thousand seven hundred thirty-seven dollars a year. Renters insurance, H O four, averages one hundred seventy-three. The condo unit owners form, H O six, sits between them at six hundred fifty-eight, because the building itself is on the association's policy.

II. Two policies, one condo

Condo coverage is split. The association's master policy covers the structure, the roof and the common areas. Your H O six covers your personal property, your liability, and the interior, depending on your bylaws. And loss assessments, the bills an association sends to owners, sit on your policy too. A seven-line coverage table and five buying steps are in the free guide.

III. What the averages say

For scale, the same NAIC data shows homeowners premiums above the national average in some states. Georgia averages one thousand eight hundred twenty-eight. Florida, two thousand seven hundred seventy-nine. Texas, two thousand eight hundred sixty-four.

IV. Bare walls or all-in

The biggest variable is the master policy type. A bare-walls policy stops at the unfinished walls, so floors, cabinets and fixtures are the owner's to insure. An all-in policy covers the original finishes, leaving mainly belongings, liability and any upgrades. The bylaws say which one applies.

V. Loss assessments

When a building loss is larger than the master policy's limit, or falls under its deductible, the association can bill every owner a share. Loss assessment coverage pays that share, and the guide's benchmark is a limit at least as high as the master deductible.

VI. The flood gap

One gap catches owners: flood. H O six excludes it, and the association's flood policy never covers your belongings. The full guide is free at Dreamy Leads Research. What state is your condo in, and what does your condo policy cost a year? Tell us in the comments.