Your condo association insures the building. So what exactly are you paying for? The answer sits in one line of your bylaws, and most owners have never read it.
General information, not professional financial, tax, legal, or insurance advice. The Dreamy Leads Research is an editorial and data team, not a licensed advisor.
Chapters
- 0:05 Two policies, one condo
- 0:17 What HO-6 covers
- 0:28 Bare walls vs all-in
- 0:40 Loss assessment coverage
- 0:53 Why HO-6 is cheap
- 1:06 The flood gap
- 1:18 Buy it right
- 1:30 The full guide
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Full transcript
Two policies, one condo
Condo coverage is split. Your association buys a master policy for the building and common areas. You buy an H O six unit owners policy for everything inside your walls.
What HO-6 covers
Your policy covers the unit's interior finishes, your personal property, your personal liability, loss of use after a covered loss, and loss assessments the association charges to owners.
Bare walls vs all-in
A bare walls master policy stops at your unfinished walls. Flooring, cabinets, and fixtures are yours to insure. An all-in policy covers original finishes, leaving you mainly property and liability.
Loss assessment coverage
When a building loss exceeds the master policy's limit, or falls under its deductible, the association bills every owner a share. Loss assessment coverage pays yours. Match it to the master deductible.
Why HO-6 is cheap
The national average homeowners premium is fourteen hundred eleven dollars, per N A I C data. Condo policies run at a fraction of that, because the structure sits on the association's policy.
The flood gap
H O six excludes flood. Rising water needs a separate policy through the National Flood Insurance Program or a private flood insurer. The association's flood coverage never pays for your belongings.
Buy it right
Read the master policy first. Set dwelling coverage to fill its gap. Inventory your belongings, choose replacement cost, match loss assessment to the master deductible, and compare at least three quotes.
The full guide
The full coverage table, the bare walls checklist, and the buying steps are on Dreamy Leads dot com.
Frequently Asked Questions
What does condo insurance cover?
Your unit's interior finishes, personal property, personal liability, loss of use, and loss assessments — the association's master policy covers the building and common areas.
Is condo insurance required?
No state law requires it, but nearly every mortgage lender does, and many associations mandate it in their bylaws.
Sources
- Dreamy Leads Research Financial Data Explorer
- Insurance Information Institute
- NAIC
- FEMA FloodSmart
