Two policies insure a condo
Your condo association buys a master policy for the building and shared areas. You buy an individual condo policy, called an HO-6, for everything the master policy doesn’t cover. Mortgage lenders often require one.
Start with the master policy
Ask your association for the master policy and your bylaws. They decide where the building’s coverage ends and yours begins:
- “Bare walls” master policies cover the structure but not the inside of your unit: floors, cabinets, fixtures and walls inside the unit are yours to insure.
- “All-in” or “single entity” policies also cover the unit’s interior as originally built, but usually not upgrades you or a past owner added.
What an HO-6 covers
- Your unit’s interior (dwelling coverage), including improvements like new floors or a remodeled kitchen.
- Personal property: furniture, clothes, electronics. Replacement cost coverage pays to replace items at today’s prices.
- Personal liability if someone is hurt in your unit or you damage a neighbor’s unit, such as a leak that runs downstairs.
- Loss of use: extra living costs if a covered loss forces you out while repairs are made.
- Loss assessment: your share of a bill the association charges every owner after a covered loss, such as a fire in the lobby.
Don’t skip loss assessment
Many policies include only a small amount of loss assessment coverage, often a few thousand dollars, by default. If the master policy has a large deductible (wind and hurricane deductibles can be very high), owners can be assessed for their share. Check the master policy deductible and raise your loss assessment limit to match. Some policies limit how much they’ll pay toward an assessment for the association’s deductible, so ask.
What it doesn’t cover
Like homeowners insurance, an HO-6 excludes flood and earthquake, which need separate policies. Water backup from drains is often an add-on. See homeowners insurance explained for the common exclusions.
Bundle it with your car insurance
Condo insurance usually costs far less than a homeowners policy, and most insurers apply a multi-policy discount when you insure your condo and car together. Compare the bundled price against separate quotes. Our guide to bundling home and auto insurance explains how.
Frequently asked questions
Do I need condo insurance if my HOA has a master policy?
Usually yes. The master policy covers the building and shared areas; it generally doesn’t cover your belongings, your liability, or (under many policies) your unit’s interior.
What is loss assessment coverage?
It pays your share of a bill your condo association charges all owners after a covered loss, such as damage to a shared area or the master policy’s deductible.
Can I bundle condo and auto insurance?
Yes. Most insurers offer a multi-policy discount for condo and auto together. Compare the bundle with separate quotes to confirm it saves you money.
Sources
- Insurance Information Institute (Triple-I): Insuring a co-op or condo
- Insurance Information Institute (Triple-I): Are there different types of policies?
This guide is general information, not insurance or legal advice. Coverage and requirements vary by insurer and state.