HO-6 Condo Insurance: Why Unit Owners Coverage Is a Must (and How to Get the Limits Right)

Owning a condominium blends low-maintenance living with the pride of ownership. But there’s a common (and expensive) misconception: “My HOA’s master policy has me covered.” Not quite. Master policies protect the building and shared areas; your HO-6 Unit Owners policy protects your home, your finishes, and your stuff.

At Risman Insurance, we help condo owners line up their HO-6 with the master policy so there are no surprises at claim time. Here’s a clear, no-jargon guide to what an HO-6 does, how to set smart limits, why loss assessment coverage is critical, and what to change if you rent your unit—plus where improvements & betterments fit in.

What an HO-6 Typically Covers

• Interior “dwelling” (Coverage A): The parts you’re responsible for inside your four walls—cabinets, counters, flooring, drywall/paint, built-ins, fixtures, and any improvements or betterments you or a prior owner added.
• Personal property (Coverage C): Your belongings—furniture, clothing, electronics, décor, small appliances.
• Loss of use / Additional Living Expense (ALE): Pays for temporary housing and increased living costs if a covered claim makes the unit uninhabitable.
• Personal liability: Protects you if someone is injured in your unit or you’re held responsible for certain property damage to others.
• Medical payments to others: No-fault coverage for minor injuries to guests.
• Loss assessment: Helps pay your share when the association assesses unit owners after a covered building or liability claim (details below—don’t skip this!).

Coverage names vary by carrier. Endorsements can add/exclude items like water backup, special personal property, or higher jewelry limits. We’ll help you tailor this to your building and HOA documents.

First Step: Read the Master Policy (With Us)

Master policies are usually one of these flavors:

• “All-in”: The HOA insures many interior items as originally built (builder grade). Owners typically insure personal property and any upgrades/improvements above original specs.
• “Walls-in/Studs-in”: The HOA stops at the studs. Owners insure interior finish materials and fixtures including any improvements & betterments, plus personal property.
• Hybrid: Responsibilities split in unique ways (common in converted or custom buildings).
• Note: Some rare all-in forms also insure improvements & betterments—wording matters. Even then, you still need HO-6 for personal property, liability, ALE, and loss assessment; we often keep a modest Coverage A cushion for code updates and gray areas.

What to collect:

1. Master policy certificate (ask the property manager/HOA).
2. Bylaws assigning maintenance/insurance responsibilities.
3. Master policy deductible (this matters for loss assessment).
4. Any unit owner responsibility documentation the HOA provides.

We map these documents against your HO-6 so there’s no overlap or (worse) a gap.

How to Right-Size Your Dwelling (Coverage A)

Your goal is to cover the interior finishes you’re responsible for—including improvements & betterments when they’re on you.

1. List major finishes & fixtures: Flooring, cabinets, countertops, vanities, tile, appliances, interior doors/trim, built-ins, bath/shower surrounds, lighting.
2. Estimate replacement cost today: Materials and labor. If you upgraded (e.g., quartz counters), price to replace those upgrades, not the original builder grade.
3. Add a cushion: Materials/labor can spike after a building-wide loss. Build in headroom so you’re not underinsured.
4. Coordinate with the master policy:

• If the HOA covers original specs but not upgrades, insure only the upgrade value.
• If the HOA is walls-in, insure all interior finishes (originals + upgrades).
• If the HOA truly covers improvements & betterments, keep at least a minimum Coverage A and consider Ordinance or Law for code-driven costs.

Tip: Keep a simple spreadsheet or photos with today’s prices for your finishes. It makes setting Coverage A—and filing a claim—much easier.

How to Right-Size Your Personal Property (Coverage C)

Two approaches work well:

• Room-by-room inventory: Walk through each room and list items with a rough replacement value. Don’t forget closets, kitchen contents, and small electronics.
• Hybrid quick method: Start with a baseline you’re comfortable with, then spot-check rooms with the highest value (living room, primary bedroom, kitchen) to adjust.
• A quick, accurate inventory helps you set the right Coverage C limit and speeds up claims. The NAIC Home Inventory tools let you record items room-by-room, attach photos, and export your list.

👉 Resource: NAIC Home Inventory

Consider add-ons:

• Replacement cost (not actual cash value).
• Scheduled valuables for jewelry, art, bikes, instruments, or collectibles.
• Special limits upgrades if you have high-value electronics or gear.

The Star of the Show: Loss Assessment Coverage

This coverage helps when the HOA assesses unit owners to cover:

• A building claim deductible or shortfall (e.g., a large wind/hail or water loss).
• Covered property damage to common elements.
• Certain liability claims against the association.

Why it matters:

• Master policy deductibles can be substantial. After a big claim, the HOA may assess every owner their share of that deductible—or assess the responsible unit if bylaws allow.
• Without adequate loss assessment limits, that bill comes straight to you.

How to choose a limit:

1. Confirm the master deductible (ask the property manager).
2. Review bylaws: Are deductibles/assessments spread across all units or targeted to the affected unit?
3. Set your loss assessment limit to at least match the realistic assessment you could face. Many owners also add endorsements that broaden what assessments are covered.

Note: Policies limit loss assessment to covered causes of loss and may have sub-limits or exclusions (e.g., assessments for maintenance or non-covered perils). We’ll align your coverage with how your building actually operates.

Water Damage & Other Common Gotchas

• Water backup/sump overflow: Typically an optional endorsement. If your stack backs up, you’ll be glad you have it.

• Unit-to-unit leaks: Bylaws often assign responsibility to the source unit. Make sure your liability and dwelling limits are adequate.

• Specialty flooring or custom millwork: Price it realistically under Coverage A.

• Short-term rentals: See next section—this often changes everything.

Renting Your Condo? Switch to HO-6 “Rented to Others”

If you lease your unit—long- or short-term—tell us. You’ll likely need:

• Rented-to-others endorsement or a landlord/tenant-occupied variant of HO-6.

• Liability adjusted for landlord exposures (consider higher limits and an umbrella).

• Loss of rents (Fair Rental Value): Replaces rental income if a covered claim makes the unit uninhabitable.

• Personal property limited to what you furnish (e.g., appliances, landlord-owned furniture).

• Compliance with HOA rules & city ordinances (some HOAs restrict short-term rentals).

Using the wrong form for a rental can lead to denied claims—easy fix: tell us your plan, and we’ll place the right version.

Quick Condo Insurance Checklist

Master policy type confirmed (all-in / walls-in / hybrid)

Master deductible known (+ bylaws on how it’s assessed)

Coverage A set for your interior responsibility and any improvements & betterments

Coverage C fits your actual belongings (with replacement cost)

Loss assessment limit chosen to match realistic exposure

Water backup endorsement reviewed

Jewelry/valuables handled (schedule if needed)

Renting the unit? Switched to the right policy form & added loss of rents

FAQs

Bottom Line

Your HOA’s master policy is the building’s safety net—not yours. A well-built HO-6 Unit Owners policy fills the gaps for your finishes, your improvements & betterments, your belongings, your liability, and the loss assessments that can blindside owners after a claim.

Want help reading the master policy and right-sizing your HO-6? Risman Insurance can align the master and the unit owner coverage—ideally with the same agency—so claims go smoother and finger-pointing is replaced with fast resolution.

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Disclaimer: Coverage varies by carrier and policy. No coverage is bound, added, or changed until confirmed in writing by Risman Insurance Agencies.