What do you know about Condo Homeowner Insurance HO6?

Condo HO-6 Insurance (unit owners insurance) often works in conjunction with the Homeowner Association (HOA) master policy, which provides broader coverage for the condominium complex. Here's how the two policies typically complement each other:

HOA Master Policy

1. Building Property Coverage: Covers the structure of the building, including common areas such as lobbies, hallways, roofs, and exterior walls. Depending on the policy, it might also cover fixtures within individual units, such as plumbing and wiring, up to a certain point.

2. Liability Coverage: Provides protection for the association against claims of bodily injury or property damage that occur in common areas.

3. Directors and Officers (D&O) Insurance: Protects the board members of the HOA from legal actions related to their decisions and actions taken on behalf of the association.

4. Loss of Common Elements: Covers damages to shared amenities such as pools, gyms, or clubhouses.

Condo HO-6 Insurance

1. Personal Property Coverage: Protects the condo owner's personal belongings within their unit.

2. Liability Coverage: Provides personal liability protection for the condo owner.

3. Dwelling Coverage: Covers the interior of the unit, including walls, flooring, and any upgrades or renovations made by the owner.

4. Loss of Use Coverage: Covers additional living expenses if the unit becomes uninhabitable due to a covered loss.

5. Loss Assessment Coverage: Protects the condo owner from special assessments imposed by the HOA to cover expenses that exceed the HOA's master policy, such as significant repairs to common areas or liability claims.

How They Work Together

• Complementary Coverage: The HOA master policy typically covers the building's structure and common areas, while the HO-6 policy covers the interior of the individual unit and the owner's personal property. This ensures that both the shared and private aspects of condo living are protected.

• Gap Filling: The HO-6 policy fills in the gaps left by the HOA master policy. For instance, if the HOA policy does not cover interior fixtures or certain types of damage, the HO-6 policy can provide the necessary coverage.

• Loss Assessment: If the HOA master policy's coverage limits are exceeded, resulting in a special assessment to cover the shortfall, the HO-6 policy's loss assessment coverage can help condo owners pay their share of the assessment.

Understanding the interplay between these two policies helps condo owners ensure comprehensive protection for their property and liability, reducing the risk of unexpected out-of-pocket expenses.