What is condo insurance?
Condo insurance, also called an HO-6 policy or walls-in coverage, protects condominium owners. It covers the parts of your unit you're responsible for, your personal belongings, your personal liability and extra living expenses after a covered loss. It works alongside your HOA's master policy, not instead of it.
What does your HOA master policy cover?
Every condo association carries a master policy, but they don't all cover the same things. Your condo bylaws and master policy explain where responsibility shifts from the HOA to you. Most master policies fall into one of three types:
What does your HOA master policy cover?| Master policy type | What the HOA usually covers | What you usually cover |
|---|
| Bare walls | Building structure and common areas only | Everything inside your unit, including drywall, flooring, fixtures and cabinets |
|---|
| Single entity | Structure plus original fixtures inside units | Upgrades you've made, plus your belongings |
|---|
| All-in | Structure, fixtures and often improvements | Mainly your belongings and liability |
|---|
Ask your HOA or property manager for a copy of the master policy declarations. We'll review it with you so your HO-6 dwelling limit isn't too high or too low.
What does condo insurance cover?
What does condo insurance cover?| Coverage | What it pays for |
|---|
| Dwelling or unit | Repairs to the parts of your unit you're responsible for, like walls, floors, built-ins and improvements |
|---|
| Personal property | Your furniture, clothing, electronics and other belongings after covered losses like fire and theft |
|---|
| Personal liability | Injuries in your unit or damage you accidentally cause to another unit, such as a leak from your washing machine |
|---|
| Loss of use | Temporary housing and extra costs if your unit becomes unlivable after a covered loss |
|---|
| Loss assessment | Your share when the HOA charges owners for a common-area loss above its coverage or deductible, up to your limit |
|---|
Dwelling or unit coverage
Helps repair or rebuild the parts of your unit you're responsible for, like walls, floors, built-ins and improvements.
Personal property
Covers your furniture, clothing, electronics and other belongings against covered losses like fire and theft.
Personal liability
Helps if someone is injured in your unit or you accidentally damage another unit, such as a leak from your washing machine. For higher limits, an umbrella policy can add coverage above the condo policy.
Loss of use
Helps pay for temporary housing and extra costs if your unit becomes unlivable after a covered loss.
Loss assessment
If a major loss to a common area exceeds the HOA's coverage or deductible, the association may charge each owner a share. Loss assessment coverage helps pay your portion, up to your limit.
What condo insurance usually doesn't cover
- Flood damage, which needs a separate flood policy
- Earthquake damage, unless added
- Sewer and drain backup, unless you add an endorsement
- Wear and tear, mold from slow leaks and pests
- High-value items above set limits unless scheduled
How much condo insurance do you need?
Start with your master policy type. If it's bare walls, your dwelling coverage needs to be high enough to rebuild your entire interior. If it's all-in, you may need much less. Then estimate the replacement cost of your belongings and choose a liability limit that protects your savings. Finally, check your HOA's deductible. Some associations pass large deductibles on to owners, which makes loss assessment coverage more important.
Is condo insurance required?
No state law requires it, but your mortgage lender likely will and many HOAs require owners to carry a minimum amount of coverage.
What affects the cost of condo insurance?
- Location, building age and construction type
- Your master policy type and HOA deductible
- Coverage limits and your deductible
- Your claims history and, in many states, credit-based insurance score
- Building safety features like sprinklers and security
Ways to save on condo insurance
- Bundle your HO-6 policy with your auto insurance.
- Match your dwelling coverage to your master policy so you're not overinsured.
- Install water leak sensors, which some insurers reward.
- Review your coverage when your HOA changes its master policy.
How ChaCha helps condo owners
We'll review your HOA master policy and bylaws, explain where your responsibility begins, compare condo insurance quotes and make sure your lender and HOA requirements are covered.
ChaCha Insurance is an independent insurance agency. Quotes are free and asking for one doesn't start or change any policy.
