There are more than five million Americans living in condominiums according to the US Department of Housing and Urban Development. Maybe you’re one of those Americans living in a city or suburban condo building. You have a unique living situation and need a unique type of homeowners insurance called HO6.
Independent insurance agents everywhere will tell you HO6 condo policies are meant for anyone who owns and occupies their condo unit. This type of insurance takes care of a condo the same way an HO3 plan takes care of a single-family home.
What Does an HO6 Do For You?
HO6 condo insurance safeguards the parts of your condo unit that the condo association’s master policy does not protect. Really, an HO6 plan is meant to cover everything inside the walls of your home while the association’s policy will cover everything outside of your unit’s walls.
HO6 condo owner coverage takes care of stuff inside the unit like:
- Personal belongings (e.g., clothing, sports gear, jewelry)
A condo association’s master policy covers anything going on outside the units like:
- Commonly used walkways
Most mortgage companies and financial lenders require condo owners, like yourself, to buy an HO6 insurance policy. This protects both the condo owner (you) and the lender.
How Does an HO6 Break Down?
Let’s take a 30,000 foot view of the HO6 condo insurance and what types of benefits are part of the plan. The overview below will give you a good idea about what to expect from your condo owner’s policy.
The protections you can rely on with an HO6:
- Coverage A or dwelling: Covers the structures of your condo like the floor, windows, and walls.
- Coverage C or personal property: Covers belongings inside your condo like furniture, clothing, appliances, and sports gear.
- Coverage D or loss of use: Covers expenses for staying at a hotel or relocating while your condo unit is being fixed. Of course, this only applies if your home is unlivable because of a covered risk. For instance, Coverage D isn’t meant for insureds who are just having the space painted and need to avoid the paint fumes for a few days.
- Coverage E or personal liability: Covers your personal liability for someone getting physically injured on your property or having their personal items damaged. Coverage E takes care of the other party’s medical bills, pays to repair their property, and pays for your legal defense if you get sued.
- Coverage F or medical payments: Covers medical bills for someone who’s hurt on your property regardless of who is at fault.
You may have noticed that an HO6 condo policy doesn’t include Coverage B (Other Structures Coverage) which is used for things like detached garages, sheds, and swimming pools. That’s because your condo association’s master insurance policy will insure those types of buildings.
Insurance companies know there are often changes in condo laws. That’s why HO6 condo insurance policies can usually be customized. Condo owners also have to be sure their HO6 policy meets the rules and regulations.
Talk with an independent insurance agent about your HO6 condo insurance policy. Your agent can review your condo association’s rules and master policy, as well as check out local laws to be sure your HO6 plan does what it should.
What Are Some Other Benefits of HO6 Condo Insurance?
Besides all the great protections HO6 condo insurance gives you, there are a few other benefits to getting such a policy.
Little perks to keep in mind regarding your HO6 insurance plan:
- HO6 condo coverage takes into account any upgrades, improvements, or alterations within your unit.
- Condo policies are usually pretty affordable and often have small deductibles.
- Coverage for special belongings (e.g., fur coats or heirlooms) can be added to an HO6 for a minimal fee.
- Coverage for natural disasters not included on the standard HO6 can also be added for a minimal fee. So you can get protection for earthquakes, storms, and flooding if you want. Just ask your independent insurance agent for help.
- HO6 condo plans have to, by law, cover at least 20% of the condo unit’s estimated value.
- Some insurers will cover your condo if it’s being rented for less than two nights, like through an Airbnb situation. Check with your independent agent about your particular HO6 plan’s coverage rules.
- HO6 insurance is meant to provide coverage where the condo association’s master policy ends. That’s for personal property and liability too.
How Do You Sign Up for an HO6?
Shopping for an HO6 condo insurance policy that meets all your needs, complies with all the rules, and is affordable may seem impossible. Working with an independent insurance agent in your area can make buying an HO6 a whole lot easier. Sign up for an HO6 today and have peace of mind tomorrow.
TrustedChoice.com Article | Reviewed by Christina Palermo
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