What is an HO6 insurance policy?
First, it’s important to know what’s covered on an HO6 policy before we compare a condo policy to HOA insurance. An HO6 policy is homeowners insurance that covers the property interest and personal property of insureds who own a condo. Unlike an HO3 or HO5 that covers the entire structure of your home, an HO6 only covers the interior of your condo. Here are the types of coverages typically available on an HO6 policy:1
Coverage A – Dwelling Coverage:
This typically covers the interior of your unit from the drywall in, depending on your state. Your HO6 policy may pay for things like built-in cabinetry and appliances.
Coverage C – Personal Property:
This covers your belongings, otherwise known as personal property. Your personal property is anything not attached to your home, including furniture, clothing and electronics. This is never included in the HOA’s master policy.
Coverage D – Loss of Use:
This covers additional living expenses above what you would normally spend, if a loss has made your condo unlivable. This also provides coverage for Fair Rental Value for when a covered loss makes the part of your condo rented to others or held for rental by you, unfit to live in.
Coverage E – Liability:
This covers you if you’re legally responsible for someone else’s property damage or bodily injury.
Coverage F – Medical Payments:
This helps cover medical bills for people who are accidentally injured either on the insured’s property or caused by activities of an insured. Medical payments coverage doesn’t extend to members of your household.
Loss Assessment Coverage:
This helps cover you if you’re assessed by your HOA for damage to a shared area of your condo property, such as roofs, pools, stairwells and more. However, this coverage only applies if the assessment is to repair damage from a covered cause of loss such as wind or hail.