What is condo insurance?
Condo unit-owner insurance, often called an HO-6 policy, is built to work alongside an association's master policy. The master policy may cover common areas and some portions of the building, while the unit owner may remain responsible for interior finishes, improvements, belongings, living expenses, and personal liability.
There is no universal “walls-in” boundary. The declaration, bylaws, and master policy should be reviewed together because associations allocate responsibility differently.
Coverage a unit owner commonly considers
Depending on the policy and association documents, protection may include:
Building items
May cover fixtures, flooring, cabinets, improvements, or interior portions of the unit for which the owner is responsible.
Personal property
May cover furniture, clothing, electronics, and other belongings after a covered loss.
Loss of use
May help with additional living expenses if covered damage makes the unit uninhabitable.
Liability and medical payments
May respond to eligible claims involving injury or property damage for which the unit owner is responsible.
Loss assessment
May cover certain assessments charged by the association because of a covered loss, but triggers, deductibles, and limits vary.
Common limitations and gaps
- The association deductible is not automatically covered in full
- Flood, earth movement, wear, maintenance, and repeated seepage are commonly excluded or limited
- Association assessments arising from uncovered events may not qualify
- Short-term rental or vacancy can create restrictions
- Valuable items and business property may need added coverage
What affects your coverage needs
- What the master policy covers
- The unit-owner responsibilities stated in governing documents
- Association deductibles and loss-assessment exposure
- Cost of interior improvements
- Rental, vacancy, or secondary-residence use
What to compare between policies
- Building-property limit
- Loss-assessment language and deductible-assessment treatment
- Replacement-cost terms for contents
- Water damage and backup provisions
- Required endorsements in the association documents
A practical next step
Gather your current declarations, a list of the people and property that need to be insured, and any questions about limits or exclusions. Those details make it easier to compare policies on coverage as well as price.
Coverage availability, terms, limits, and eligibility vary by insurer and state. Coverage can be confirmed only by the issued policy and applicable endorsements.