HO-6 Policies Explained
An HO-6 covers your condo unit's interior, belongings, and liability where the HOA's master policy leaves off.
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The HOA's master policy usually covers the building's exterior, roof, and common areas. Your HO-6 picks up from there, covering the walls, floors, and fixtures inside your unit, plus your belongings, liability, and loss of use if you can't live there during repairs. Check your HOA's governing documents for whether the master policy is bare-walls or all-in, since that changes how much interior coverage your unit needs. If a neighbor's leak damages your unit, your HO-6 often pays first, and either insurer may pursue the other's policy afterward.
Find out what your unit needs covered
Your HOA's master policy only goes so far, and bare-walls coverage leaves more on your side than you might expect. Comparing HO-6 quotes shows what different insurers offer for interior coverage, loss assessment, and liability.
What happens when the HOA sends a special assessment after a loss
If a storm damages the roof or the lobby and the master policy doesn't cover all of it, the HOA can bill every owner a share of the gap. That bill is a special assessment, and it can land on you whether or not your own unit was touched. Most HO-6 policies include a small amount of loss assessment coverage by default, often in the range of a thousand to a few thousand dollars. You can usually raise that limit for a modest add in premium.
Loss assessment coverage typically responds to shortfalls in two situations. One is property damage the master policy didn't fully cover. The other is a liability claim against the HOA, like someone hurt in a common hallway. It does not cover assessments for things unrelated to a covered loss, such as a special assessment to repave the parking lot or fund a reserve account. Read the assessment notice from the HOA closely, since it usually states the reason for the charge, and that reason determines whether your policy applies.
Townhome insurance often gets confused with condo insurance, but the coverage structure can differ in an important way. Many townhome owners actually own the roof and exterior walls of their unit outright, with no master policy covering the building itself. In that case, an HO-3 policy, the standard form for a detached house, may fit better than an HO-6, since there's no shared structure to carve around. Some townhome communities do carry a master policy for shared elements like a clubhouse or private roads, which puts the owner back in HO-6 territory for the dwelling. The HOA or property manager can confirm which structure applies, and it's worth asking directly rather than assuming based on how the building looks.
How much loss assessment coverage makes sense depends on the size of the building and the HOA's own policy limits. A twelve-unit building with a modest master policy carries more per-owner risk in a bad loss than a four-hundred-unit high-rise with a large commercial policy behind it. The HOA's insurance certificate or governing documents usually show the master policy's limits and deductible, and that deductible matters too. Some HOAs pass their master policy deductible to owners as an assessment after every claim, and a few HO-6 policies offer specific coverage for that deductible amount. Checking the HOA's claims history and bylaws for assessment language gives a clearer sense of what limit is worth carrying.
How much HO-6 coverage does a unit actually need
Most insurers suggest a starting number for interior coverage, but it is only a starting point. The right figure depends on what your HOA's master policy leaves out. If the master policy is bare-walls, meaning it only covers the studs and structure, your HO-6 needs to cover everything built in after that, including cabinets, flooring, built-in appliances, and any upgrades a past owner made. If the master policy is all-in, covering fixtures and even some interior finishes, your own interior coverage can be lower.
A renovation changes the math even if you never updated your policy. Granite counters, custom cabinetry, and upgraded flooring all add to what it would cost to rebuild your unit's interior, and a policy written for the unit's original builder-grade finishes may fall short. If you renovated or bought a unit that was already upgraded, it is worth pricing out what those specific finishes would cost to replace and checking that number against your coverage limit.
Personal property coverage works differently and is not tied to the master policy at all. It covers furniture, electronics, clothing, and everything else you own, regardless of what the HOA's policy says. A common approach is to estimate the replacement cost of your belongings room by room, since people tend to guess low when they do it from memory alone. Some HO-6 policies pay actual cash value for belongings, which subtracts depreciation, while others pay replacement cost, which does not. That distinction affects what a claim check actually covers after a fire or a burst pipe, and it is worth confirming which one a policy uses before relying on it.
Liability coverage is the other piece, and it protects you if someone is injured inside your unit or if you accidentally cause damage to a neighboring unit. A standard liability limit covers most situations, but higher limits are available and cost relatively little to add. Loss of use coverage, which pays for temporary housing if your unit becomes unlivable during repairs, is worth checking too, since the length of time it pays out varies by policy and matters more in a building where repairs tend to take months rather than weeks.
One thing worth checking now
Pull your HOA's governing documents and see whether the master policy is bare-walls or all-in. That single fact tells you whether your interior coverage limit is likely too low.
