Condo (HO6) insurance is a type of insurance policy that protects you, your stuff, and your unit (everything from the outermost walls, inward).
What is condo (HO6) insurance?
Condo (HO6) insurance is a type of property and casualty insurance. It protects condo owners from bad things that may happen to them, their family, their stuff, or their investment.
What does condo insurance cover?
Your standard condo insurance policy (called an HO6 policy) provides the following 5 areas of coverage:
- Dwelling (aka your unit) including improvements, alterations, additions, etc.
- Personal property, meaning the stuff you own
- Loss of use for when your place becomes uninhabitable
- Personal liability for when you’re sued or accidentally caused harm to others
- Medical payments to others for covering any issues that arose at your place, or anywhere else (under $5,000)
What’s the difference between homeowners insurance and condo insurance?
Whereas homeowners own and are responsible for everything on their property (home, garage, fence, etc.), condo owners with HO6 policies are only responsible for the outermost walls of their unit, inward.
A homeowners association (HOA) or corporation will most likely have a master policy on the actual building, covering everything outside of the walls, including common areas and the surrounding property.
Let’s say a guest gets injured in the backyard of your place. If you live in a condo, you wouldn’t be liable. Your homeowners association’s insurance would be on the hook.
If you live in a home, however, your homeowners policy would be doing the heavy lifting.
Why is HO6 insurance important?
As discussed above, while your HOA may cover common areas and the property your place is on, it doesn’t cover your unit itself (walls, ceilings, floors, etc.) or the stuff inside (including you!). So if you live in a condo, you’ll want to make sure to have all of that covered with an HO6 insurance policy 🙂
Pro tip: Take a good hard look at everything you own and your lifestyle, and make sure you have enough coverage for every scenario.
A good way to figure this out is to ask yourself, if something were to happen to your stuff, how much would you be able to cover out of pocket… today. All of it? Some? None? That’s where insurance helps out: you pay on a monthly basis, so if anything bad happens, you’ll be covered.