Key Takeaway: An HO-3 homeowners policy covers your entire structure plus belongings. An HO-6 condo policy covers only your unit's interior and belongings — the HOA master policy covers exterior and common areas. Ask your HOA: does it have an "all-in" or "bare walls" master policy?
Home Insurance (HO-3) vs Condo Insurance (HO-6)
| Feature | HO-3 (Home) | HO-6 (Condo) |
|---|---|---|
| Structure covered | Entire building | Interior walls, fixtures only |
| Personal property | Yes | Yes |
| Liability | Yes | Yes |
| Loss of use | Yes | Yes |
| Common areas | N/A | Covered by HOA master policy |
| Avg annual cost | $2,285 | $625–$900 |
Understanding Your HOA Master Policy
"Bare Walls In" HOA Policy
Covers only the bare structure — framing, exterior walls, roof. Everything inside your unit walls — flooring, cabinets, fixtures, appliances — is your responsibility. You need robust HO-6 dwelling coverage.
"All-In" HOA Policy
Covers the full interior as originally built, including fixtures, flooring, cabinets, and built-in appliances. Your HO-6 only needs to cover improvements above the original build-out and personal belongings.
Loss Assessment Coverage
If the HOA suffers a major loss that exceeds its master policy limits, it can assess all unit owners for the shortfall. Loss assessment coverage in your HO-6 protects you from these special assessments — typically $1,000 limit by default, can be increased to $50,000. A critical and often-overlooked condo coverage.
Frequently Asked Questions
Is condo insurance required?
Most mortgage lenders require HO-6 condo insurance as a loan condition. Some HOAs also require it in their bylaws. Even if not required, going without leaves you exposed to personal property loss and liability claims.
What if my neighbor's water leak damages my condo?
Your HO-6 covers the resulting damage to your unit. If your neighbor is at fault, their liability coverage should reimburse your insurer through subrogation. Make sure your HO-6 includes water damage coverage.
How much personal property coverage do I need?
Create a home inventory and calculate replacement costs. Most financial advisors suggest $50,000–$150,000 in personal property coverage for a typical condo. High-value items like jewelry or art may need a scheduled personal property endorsement.