HO6 (Condo) Insurance – Understanding what it is

Homeowners Insurance vs Homeowner Association Insurance

HO6 (Condo) Insurance – If you live in a Condominium Association, chances are you may not have the insurance coverage you need. Many residents and homeowner believe that their property is covered through the Homeowner Association's policy, but in many cases this is not true!  Our HOA managers and administrative teams often field calls and emails from owners who did not realize that there is a difference between their own homeowner insurance (called "HO6" Insurance and the common area policy of the homeowner association. Our association management team hopes that this article can help understand the difference between the two types of policies.

Association policies cover common property, so in the case of a building that coverage is typically only the exterior, “bare walls”, or “walls-in” coverage. So, what is the difference between each?

Exterior Coverage

Covered:

NOT Covered:

Covered:

NOT Covered:

Covered:

NOT covered:

How do Homeowners figure out their coverage?

Above are typical coverages for a Homeowner Association Policy, but each Association is unique. It’s always good to check your specific HOA governing documents to understand what are maintenance responsibilities for a homeowner versus the association. Your insurance coverage will cover the gaps that exist due to limitation of HOA maintenance responsibilities or areas.  Therefore, homeowners should review their coverage to insure it meets your properties needs.  The HO6 (Condo) Insurance Policy is designed to cover what the Association insurance DOES NOT. This coverage is important to all Condominium owners, whether you’re in a risky area or not!  Additionally, if you are in a flood area you’ll probably need your own Flood insurance policy. FEMA has an 06 Condominium policy to provide coverage for what your Association Policy does not cover.