Fine Print Guide

Your home and things · HO-6

Condo insurance

Covers the inside of your condo unit, your belongings and your liability. The association's master policy covers the building and shared areas.

Who it's for
People who own a condominium or co-op unit.
Is it required?
Not by law. Your mortgage lender will require it, and many condo associations require it in their bylaws.

Usually covered

  • The parts of the unit the master policy leaves to you, often floors, cabinets, fixtures and any upgrades you made
  • Your belongings, from the 16 named perils
  • Extra living costs if the unit is unlivable after covered damage
  • Your share of a special charge the association passes to owners after a big loss, through loss assessment coverage
  • Claims if you hurt someone or damage a neighbor's unit

Usually not covered

  • The building structure, roof and common areas, which the association's master policy covers
  • Flood and earthquake
  • Wear and tear, slow leaks and mold
  • Sewer or drain backup, unless added
  • Pests

Real-life examples

Your washing machine hose bursts and floods the unit below.

Usually covered

Your unit's floors and belongings are covered under your HO-6. Your liability coverage pays for the neighbor's damage if you're responsible.

A storm damages the roof, and the association charges each owner $4,000 toward its deductible.

Usually covered

Loss assessment coverage pays your share, up to its limit. Many policies include only $1,000. Assessments that come from the association's deductible are often capped separately, even if you raise the limit.

You remodeled the kitchen, and a fire destroys it.

It depends

Your upgrades are usually yours to insure. If your unit coverage limit is too low to cover the remodel, you pay the difference.

What's inside a condo policy

ADwelling (your unit)Walls in, as the bylaws define

How much you need depends on the master policy. A "bare walls" master policy leaves everything inside the walls to you. An "all-in" master policy covers the original fixtures, leaving you only your upgrades. Ask the association for a copy.

CPersonal propertyYour belongings

Your furniture, clothes and electronics, at home or away.

DLoss of useWhere you stay meanwhile

Extra living costs while the unit is being repaired.

EPersonal liabilityHarm you cause

Claims against you for injuries or property damage, including to neighbors' units.

FMedical payments to othersGuests' small medical bills

A visitor's medical bills, whoever was at fault.

Add-onLoss assessmentYour share of the association's costs

When a loss hits shared property and the master policy doesn't pay all of it, the association can bill owners. This coverage pays your share, up to its limit. Assessments from the association's deductible are often capped separately, sometimes at $1,000.

Check your own policy

Find these on your policy or declarations page, or ask your agent:

  • What the master policy covers: "bare walls", "single entity" or "all-in"
  • The master policy's deductible, which the association may pass on to owners
  • Your loss assessment limit
  • Coverage for upgrades you made
  • Whether water backup coverage is included

Not sure where to look? See how to read your policy.

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