oday we will talk about HO6 policies. If you own a condo unit, did you know that your “master condo policy” only covers your unit from the concrete outward? It will not cover any plumbing, electrical, drywall, flooring, cabinets, personal property, etc…. So if the building needs to be rebuilt, you basically will be left with a shell. Also, if someone slips and falls in your unit, you can be held liable for any damages. Your “master condo policy” will not cover that.
These are the some of the coverage’s provided in a HO6 policy:
Building Property
Insures your items of real property, including building additions and alterations, installations or additions which are part of your unit and are your insurance responsibility according to the governing rules of the condominium association*.
Personal Property
This condo insurance coverage protects personal property in your home like clothes or furniture. It also provides protection for your personal property with you while away from home in many places throughout the world.
Loss of Use
Should a fire, explosion, tornado or other insured loss severely damage your unit, you could need a substitute place to stay. Loss of Use coverage will cover the necessary increase in cost to maintain your standard of living. The amount of coverage is either a dollar value or may be limited to your actual costs for up to a specified time. You should review your limit with your agent.
Loss Assessment
This valuable condo insurance coverage is uniquely designed for owners in condominiums/ associations. It recognizes the potential for owners to be assessed for certain kinds of loss. Here are examples of circ*mstances that might require the condominium association to assess all unit owners:
•Someone is seriously injured on common property (perhaps at a swimming pool) and the courts award a judgment that’s higher than the amount of liability coverage provided by the condominium/association policy.
•Major damage occurs to commonly owned buildings and it is not fully covered by insurance.
In either case (and other similar cases), loss assessment coverage would pay your share (up to stated amount). You should review the need for this coverage with your agent and buy an appropriate amount of coverage.
Personal Liability
Personal liability coverage protects you if others make a claim or bring suit against you for bodily injury or property damage for which you or a member of your family are responsible, either in your home or elsewhere and to which coverage applies.
In addition to settlement costs, this coverage may pay defense costs and court costs — even if a suit brought against you is groundless.
It is essential that you select liability limits high enough to protect your assets.
If you need more protection than your regular policy limits, consider a personal liability umbrella policy. It adds an extra layer of personal liability protection to your car policy, your boat policy (if you have one) and your condominium unit owners (homeowners) policy.
Medical Payments to Others
This coverage pays medical expenses up to the limits in the policy for people who are on your premises with your permission and accidentally injured. The coverage also extends to people accidentally injured by your activities. However, the coverage does not pay for medical expenses for you or members of your family that live with you.
The newest addition to these coverage’s from the above list is the loss assessment coverage. This is a great new addition to the coverage’s because as stated above, it can cover you for an assessments the association makes to your unit up to the policy amount, which in the state of Florida is $2,000.
HO6 policies are very inexpensive and with the increase in theft, personal law suits and assessments the associations are making on unit owners, its a must to have this insurance coverage.
If you own a condo unit give us a call for a free no obligation quote!
FAQs
Building/Unit/Dwelling Coverage – Like homeowners insurance, it provides coverage against fire or smoke damage, storms, vandalism or internal plumbing issues like a burst pipe. Personal Property Coverage/Theft Protection – Helps cover personal items such as furniture, clothing, electronics or jewelry in your condo.
Does HO6 cover drywall? ›
It will not cover any plumbing, electrical, drywall, flooring, cabinets, personal property, etc…. So if the building needs to be rebuilt, you basically will be left with a shell. Also, if someone slips and falls in your unit, you can be held liable for any damages.
What is the difference between an HO3 and HO6 policy? ›
What's the difference between HO3 and HO6? The main difference between an HO3 policy for a single-family home and an HO6 condo insurance policy is that while an HO3 covers the physical structure of your home itself, an HO6 policy only covers what's inside the walls of your condo.
Does an HO6 policy cover wind damage? ›
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).
Does the HO6 policy cover the roof? ›
An HO-6 policy typically includes many of the same coverage types, but covers just the interior structure of the condo. The exterior elements of the building, like the roof, are usually covered by the HOA master policy.
Does HO6 cover loss assessment? ›
Most HO-6 policies have a very minimal amount of coverage for assessments made against all unit owners for uninsured or underinsured property or liability claims: usually just $1,000.
What does HO6 liability cover? ›
Building property – this includes the unit itself and the things attached to it such as walls and fixtures. Personal property – this includes furniture, electronics, and any other movable items inside the unit. Personal liability – this covers any legal expenses from claims and lawsuits made against you.
What is the 80% rule in insurance? ›
When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.
Why is an HO6 more expensive than HO3? ›
HO-3 policies insure traditional single-family homes, while HO-6 policies insure condos and some townhouses. Buying an HO-3 policy is typically more expensive because it covers the entire house plus other structures, like fences, pools and detached garages.
What is the difference between HO6 and homeowners insurance? ›
The main difference between a condo owner's HO-6 policy and a regular HO-3 homeowners insurance policy is that an HO-6 policy only covers the interior structure of a unit from the "walls in." Otherwise, HO-3 and HO-6 policies are quite similar in how they cover personal property, liability and additional living ...
What is the difference between an HO6 (condo) and HO4 (renters) insurance policy? The HO6 and HO4 both cover your personal property and personal liability, but only the HO6 condo policy has additional Coverage A for the interior finishing of the unit. If you own the condo, you need the HO6.
What is the rule of thumb for condo insurance? ›
Dwelling coverage applies to the walls and fixtures in your condo. If damage occurs due to a named peril or falls under your open perils list, you can submit an insurance claim. To calculate the amount of dwelling coverage you may want, a good rule of thumb is 20% of the appraised value of your condo.
What is the average cost for an HO6 policy in Florida? ›
A condo insurance policy in Florida may cost as little as $20 to $50 per month. However, the cost depends on your condo's location, structure and the amount of coverage you buy.
What is the difference between ho3 and ho6 for townhouses? ›
An HO-6 policy covers the interior walls, carpets, countertops, plumbing, cabinets and personal property/contents of your home as well as offers liability protection. An HO-3 policy covers all of the above, plus the roof, frame, foundation, exterior walls, floor, fixtures, property and outbuildings.
What is the difference between ho3 and HO6 for townhouses? ›
An HO-6 policy covers the interior walls, carpets, countertops, plumbing, cabinets and personal property/contents of your home as well as offers liability protection. An HO-3 policy covers all of the above, plus the roof, frame, foundation, exterior walls, floor, fixtures, property and outbuildings.
Is condo insurance different from homeowners insurance? ›
Condo owners are only responsible for protecting the interior of their homes, with everything outside of those walls being covered by their homeowners association's master policy. So yes, homeowners and condo owners do need different insurance policies.
What is the difference between walls in and walls out coverage? ›
Just as the name states, this kind of homeowners policy covers what is inside your owned space. Things like the carpets, cabinetry, walls all fall under a walls-in policy. Walls-out (Studs-out) Most of the time the HOAs master policy will cover damages that could occur to outside your owned space.
