Do I Need HO6 Insurance?
If you own a condo or townhome, yes. The HOA's master policy covers common areas, not your interior or belongings.
Free to compare
Your HOA's master policy likely covers the building's exterior, roof, and shared spaces, but where it stops matters to you. Most master policies are either "bare walls," covering only the structure, or "single entity," which adds in original fixtures like cabinets and flooring. Either way, anything you added or own inside, your walls-in finishes, appliances, furniture, and belongings, falls to your HO-6 policy. Check your HOA's governing documents or master policy declarations to see which type you have, since that gap is exactly what your coverage needs to fill.
What your master policy leaves for you to cover
A bare walls master policy can leave tens of thousands in cabinets, flooring, and fixtures uncovered if your unit is damaged. The right HO-6 coverage amount depends on what your HOA's policy actually includes, not a guess.
What happens when a neighbor's pipe floods your unit
Water damage from another unit is one of the most common claims condo owners file, and it rarely sorts itself out the way people expect. If a pipe bursts in the unit above yours and water comes through your ceiling, your neighbor's HO-6 liability coverage may apply if they were negligent, say they ignored a leak for weeks. But if it was a sudden, accidental pipe failure, negligence is hard to prove, and the damage to your unit typically falls to your own policy. Your HO-6 covers your walls-in finishes and belongings regardless of whose pipe caused the problem, which is why the coverage matters even when someone else's unit is the source.
Loss assessment coverage earns its keep in situations like this. If the HOA's master policy has a high deductible, say $25,000, and a pipe burst in a common wall causes $30,000 in damage, the HOA may spread that deductible across all unit owners as a special assessment. Loss assessment coverage, usually a few thousand dollars included in a standard HO-6 and raisable for a modest cost, reimburses you for your share. Without it, that bill lands squarely on you with no insurance behind it.
Townhome insurance works differently depending on how the property is structured. If a townhome is part of an HOA that owns and insures the exterior walls and roof, similar to a condo, an HO-6 policy is the right fit. If the townhome owner holds title to the entire structure, including the roof and exterior walls, with no master policy backing it, a standard HO-3 homeowners policy is usually required instead, since there's no shared building coverage to coordinate with. Checking the HOA agreement or title paperwork settles which applies before buying coverage.
How much HO-6 coverage a unit needs comes down to two things. One is the cost to rebuild the interior from bare walls, including any upgrades like custom cabinetry or flooring. The other is the value of personal belongings. An insurance agent or the HOA's master policy declarations can help estimate the first. A simple home inventory covers the second. Underinsuring either one means paying out of pocket for the gap after a covered loss, which defeats the purpose of carrying the policy at all.
What loss of use coverage pays for after a covered loss
If a fire or burst pipe makes a unit unlivable, loss of use coverage under an HO-6 policy pays for a hotel or short-term rental while repairs happen. It also covers extra costs that come with living away from home, like eating out more than usual or paying for a storage unit. Most HO-6 policies include a loss of use limit as a percentage of personal property coverage, often 20 to 30 percent, though the exact figure sits on the declarations page. For a bad kitchen fire that takes months to repair, that limit can run out before the work is done, so checking it against local rental costs matters more than it seems at first.
Deductibles on an HO-6 policy work the same way they do on any home insurance policy, but condo owners sometimes carry two to think about. One is the deductible on the HO-6 policy itself, which applies to damage to the owner's own unit and belongings. The other is the HOA's master policy deductible, which can come due as a loss assessment if a shared loss exceeds what the HOA budgeted for. A higher personal deductible lowers the HO-6 premium, but it also means paying more out of pocket before coverage kicks in on a claim to the unit itself.
Personal liability coverage in an HO-6 policy protects against claims from people hurt inside the unit, not just damage the unit causes to others. If a guest slips in the kitchen and sues, liability coverage pays for the owner's legal defense and any settlement up to the policy limit. This is separate from the liability coverage that might apply if water or fire from the owner's unit damages a neighbor's unit. Most standard HO-6 policies start liability coverage around $100,000, and raising it costs relatively little, which is worth weighing against what a lawsuit could actually cost.
Scheduling high-value items is worth a separate look for anyone with jewelry, art, or collectibles. A standard HO-6 policy caps coverage for certain categories of belongings, jewelry especially, often at a few thousand dollars total regardless of what it is actually worth. Scheduling an item means listing it separately on the policy with its own coverage amount, usually based on an appraisal. Without that step, a lost ring or a damaged collection may only be covered up to the category cap, leaving a gap between what was paid for the item and what the policy actually pays out.
Before you buy coverage
Pull your HOA's master policy declarations and see whether it's bare walls or single entity. That one page tells you what your HO-6 needs to cover, from flooring to loss assessment limits.
