What is HO6 insurance?
An HO6 policy, also known as condo insurance, addresses the specific needs of condo owners. Unlike single-family homeowners, condo owners usually don’t have to insure the entire building where their home is located, and few have other structures on their property. A condo’s common areas are often covered by the condominium’s homeowners association (HOA) insurance policy, sometimes called its master policy. But condo owners still have to insure their individual units.
Essentially, HO6 insurance steps in to pick up where the HOA’s insurance policy leaves off, meaning in most states it protects the:
- Wall coverings of your unit
- Whatever is on the floors (e.g., laminate, tile, hardwood, carpet),
- All its contents.
It also protects you – your liability for injured guests, your additional living expenses if the unit becomes uninhabitable, and more. Let’s take a closer look.
What does an HO6 policy cover?
A standard HO6 policy covers your:
- Dwelling. In HO6 insurance, dwelling coverage typically protects your individual unit from the wall coverings in, floor coverings, additions you add, what your condo association requires you to cover, and more.
- Belongings. Personal property coverage insures the belongings that make your condo a home, like furniture, cabinets, clothing, decor, and more.
- Additional living expenses. If a covered claim makes your home uninhabitable, loss of use coverage can help pay for additional living expenses (think: takeout, a hotel stay, etc.).
- Liability. Personal liability coverage can help pay for legal expenses when someone is hurt in your condo or you accidentally cause damage to someone’s property.
- Guests’ medical bills. Medical payments coverage can cover small medical expenses when a guest has an injury in your home.
All Kin HO6 insurance policies offer open perils coverage for the dwelling. That means we can cover damage from an incident that isn’t listed in the policy as an exclusion or as a peril insured against that’s not covered. In other words, a lot of incidents are covered – wind damage, fire, theft, vandalism, and more.
Our Florida HO6 insurance also includes $2,000 in loss assessment coverage (sometimes called special assessment coverage). This helps pay for shared losses that condo owners are responsible for. For example, say there’s a fire in the courtyard of your building, and your condo association’s policy limits fall short. The association may call for a special assessment, which divides the extra cost among all units to make up the difference.
Loss assessment insurance can help pay for this unexpected expense, so long as the damage was caused by a covered incident.
What HO6 insurance doesn’t cover
Our HO6 insurance covers almost all perils except for the perils that aren’t covered or are excluded. They both have to do with the type of loss and what parts of your property is covered and what isn’t.
Just like most homeowners insurance policies, condo insurance doesn’t cover losses caused by:
- Flood.
- Ground movement, like earthquakes, landslides, and sinkholes.
- Wear and tear.
- Pest infestations, such as termites or rodents.
- Nuclear hazards.
- Government action.
An HO6 policy also doesn’t cover the whole building your unit is in. Your condo association’s master policy is responsible for parts of the building that are not part of your unit.
What your condo association covers
Most condo associations or HOAs have a master insurance policy that covers the building itself, like the roof and exterior walls, and common areas, such as courtyards, fences, elevators, and hallways. Your HOA fees help cover the cost of the HOA insurance policy.
Generally speaking, there are three types of condo master policies:
- Bare walls coverage. This is the most limited option for a master insurance policy and typically very common. It primarily covers the structure – including the exterior, roofing, framing, wiring, piping, insulation, and the drywall itself. It also covers common areas, like entryways.
- Single entity coverage. In addition to what’s included in bare walls coverage, single entity coverage insures built-in fixtures in individual condo units (think cabinets).
- All-in coverage. This is the most comprehensive of the three options. It covers the structure, shared property, and built-in fixtures in individual units, as well as individual condo unit improvements and additions.
What does HO6 insurance cost?
The cost of your HO6 policy depends on your condo’s location, its safety features, the limits and deductibles you choose, and other factors. That said, our condo insurance costs start at $752 annually or around $62 per month in Florida.
You might qualify for additional discounts, too. We offer discounts and credits for:
- The building’s wind mitigation.
- Mature condo owners.
- Choosing an electronic policy (we’re all about saving those trees!).
How much HO6 insurance do you need?
The amount of HO6 insurance you need mostly depends on how many belongings you have and the quality of your furniture and fixtures. As a very loose guide, this is about how much coverage you might want to carry:
- Dwelling coverage: Your unit’s interior should be insured up to its replacement cost. This is usually lower than what you paid for it because your condo association’s master policy covers the exterior.
- Personal property coverage: It’s usually smart to insure your personal property for about 20 to 50 percent of your dwelling coverage. So if you have $75,000 in dwelling coverage, you want $15,000 to $37,500 in personal property coverage.
- Loss of use coverage: We typically suggest condo owners carry loss of use coverage limits that are around 20 percent of their dwelling coverage.
- Personal liability coverage: Our standard personal liability coverage limits are $100,000, but you can choose to increase that if your situation warrants it.
- Medical payments coverage: Our HO6 policies automatically include $1,000 in coverage, but you can add more.
HO6 vs HO3: What’s the difference?
The nice thing about being a condo owner is that you have a little help with caring for the building that houses your home – and your dwelling coverage reflects that. Here are some key differences between an HO6 policy and home insurance written as an HO3 policy.
HO6 vs HO3: Differences in dwelling coverage
| HO6 | HO3 | |
|---|---|---|
| Open perils dwelling coverage | Yes | Yes |
| Replacement cost dwelling coverage | Yes | Yes |
| Policy covers entire structure | No | Yes |
| Covers other structures | Depends* | Yes |
| Covers contents of the home | Yes | Yes |
| Covers loss of use | Yes | Yes |
| Covers personal liability | Yes** | Yes |
| Covers medical payments | Yes | Yes |
*HO6 policies generally extend coverage to areas & items an HOA requires owners to insure or that are already an owner's' responsibility
**HOA policy covers common areas
The owners of single-family homes have to insure everything on their own – the entire house, garage, fences, and other structures. But condo owners only have to insure from their units’ wall coverings into their living space and whatever else their condominium documents require them to cover. Your condo association’s master policy usually covers everything outside the walls of your unit.
That’s why your condo’s dwelling coverage limits may be much less than what you paid for your unit. The condo association’s policy is essentially paying most of the dwelling insurance burden for you.
Personal liability is another area where the difference between condo insurance and homeowners insurance is stark. If someone is hurt in the driveway of your single-family home, you’re liable for the injury and subsequent medical expenses.
But if that injury happens in your condo building’s courtyard? The master insurance policy most likely covers the incident.
HO6 for a townhouse
Sometimes you need an HO6 policy for a townhouse, but some townhomes need HO3 insurance. In general, you look to an HO6 policy if your townhouse:
- Shares walls with other unit owners.
- Has exteriors or common areas where owners share responsibility.
- Is part of an HOA that has a master policy.
However, if your townhome is freestanding and you’re responsible for the outside structure or your roof, then you may need HO3 insurance.
How to get HO6 insurance
Getting a condo insurance policy online is super easy. Just type in your address and we’ll work our magic.
In some cases, we might need two documents to get your coverage squared away:
- A copy of your condo’s wind mitigation inspection.
- Your declarations page from your current home insurance provider.
It’s really that easy! See for yourself. If you're a condo owner in Florida, enter your address now for a quick, free quote.
