What Is A Homeowners HO-6
Tip: HO-6 policies are a special type of homeowners insurance that is specific to condos or townhomes
An HO-6 homeowners insurance policy, also known as condo insurance, is specifically designed to cover individual condo or townhome units. It differs from standard homeowners insurance (like HO-3 or HO-5) in several key ways:
Coverage Scope:
- Focus on your unit: Unlike standard policies that cover the entire structure, HO-6 focuses on the inside of your individual condo unit and its attached fixtures and permanent features.
- Shared responsibility: The building's master insurance policy typically covers the exterior structure, common areas, and other shared elements but may cover some aspects of the inside of your condo. Your HO-6 policy fills the gap by protecting your unit's interior, belongings, and personal liability within that space.
Important: Because of the shared responsibility, be prepared to request the Master policy from your HOA so that adaquate building and loss assessment coverages can be determined. Your HOA will usually provide a copy of the Master policy when you purchase your home, and will typically provide you a copy of any yearly coverage changes changes.
Tip: If you cannot find your persoanl copy of the Master policy or if the HOA will not provide it to you, see if someone on the board or even a neighbor has a copy of the coverages.
Key Coverages:
- Building property: Covers damage to the interior walls, fixtures, flooring, and other permanent features of your unit. It is very important to know what coverages (if any) the HOA covers so you don't under or over insure your condo.
- Personal Property: This covers your belongings inside your unit, such as furniture, appliances, electronics, clothing, jewelry, and artwork.
- Personal Liability: Protects you from legal and financial responsibility if someone gets injured or their property is damaged in your unit.
- Medical payments: This helps pay for medical expenses if someone is injured in your unit, regardless of who is at fault.
- Loss of Use: This helps pay for living expenses and other necessities if you are unable to live in your unit or it becomes uninhabitable due to a covered loss, like a fire or tornado. This could include the cost of a hotel, meals, and other living expenses.
- Loss assessment: protects you from financial assessments levied by your HOA in the aftermath of a covered peril. This coverage is usually optional. However, most HOA's will require all unitowners to split the cost of their deductible.
Additional Options
- Umbrella Insurance: Offers extra liability protection, usually starting at $1,000,000 in coverage, above and beyond the standard limits of your condo and auto policies. Depending on the carrier and state laws, this typically includes your motorcycle, RV, boat, ATV, snowmobile and your other vehicles too.
- Sewer Drain Backup: Covers damage caused by backed-up sewer/drain lines or overflowing sump pumps that are normally excluded from homeowners policies.
- Personal Articles Insurance: Provides broader coverage for high-value items beyond the policies standard limits like jewelry, fine art, cameras, musical instruments, golf clubs, bicycles, or collectibles.
- Equipment Breakdown: Protects against breakdowns of major appliances and home systems like air conditioners, furnaces, and pools.
- Flood Insurance: Protects against flood damage, which is often excluded from standard policies. A must-have if you live in a flood-prone area.
- Bundling Discounts: When you insure your home and auto policies with one company, they usually give you generous discounts on all policies. Some insurance companies require bundling of your condo and auto policies.
Master Policy
A master policy is an insurance policy purchased by the HOA to protect the building structure, common areas, and the HOA itself from liability. It's distinct from the individual HO-6 insurance policies that condo owners purchase to cover their own units and belongings.
Key Coverages:
- Building Structure: This includes the exterior walls, roof, foundation, plumbing, electrical systems, and other elements that make up the physical structure of the entire building.
- Common Areas: This encompasses hallways, lobbies, elevators, laundry rooms, swimming pools, fitness centers, and other shared spaces within the building.
- Liability: This protects the HOA from lawsuits arising from accidents or injuries in common areas due to negligence. For example, if someone slips and falls in the lobby due to a leaky faucet, the HOA's liability coverage might help cover medical expenses and legal fees.
Coverage overlap with your HO-6:
The HOA's Master Policy is primarily designed to cover items owned and operated by your HOA, like the exterior of physical building and common areas, general liability, and may also extend some coverages to the inside of your home, but they don't cover a few crucial coverages your HO-6 provides:
| Your Policy HO-6 |
Master Policy Basic |
Master Policy Balanced |
Master Policy Comprehensive |
|
|---|---|---|---|---|
| Outside your home | ||||
| Exterior walls, roof, foundation, plumbing, electrical systems | Never | Always | Always | Always |
| Hallways, lobbies, elevators, laundry rooms, swimming pools, fitness centers | Never | Always | Always | Always |
| General liability, medical payments, lawsuits | Never | Always | Always | Always |
| HOA assessments/insurance deductible for a covered loss | Optional | Never | Never | Never |
| Inside your home | ||||
| Cabinets, countertops, flooring | Depends | Never | Sometimes | Very Likely |
| Plumbing fixtures (sinks, toilets, showers) | Depends | Never | Sometimes | Very Likely |
| Built-in appliances (ovens, ranges, dishwashers) | Depends | Never | Not Likely | Very Likely |
| Heating, ventilation, and air conditioning (HVAC) systems | Depends | Never | Not Likely | Sometimes |
| Electrical panels, security systems, fire suppression systems. | Depends | Never | Not Likely | Sometimes |
| Furniture, electronics, clothing, personal items | Always | Never | Never | Never |
| General liability, medical payments, lawsuits | Always | Never | Never | Never |
| Living expenses to live elsewhere because of a covered loss | Always | Never | Never | Never |