What does condo owners insurance actually cover?

What Does an HO-6 Condo Policy Cover?

A condo owners policy, often called an HO-6, protects the parts of your home and life that the condo association's master policy does not. The association insures the building structure and shared common areas. Your HO-6 covers the inside of your unit, your belongings, your personal liability, and the gaps the master policy leaves behind. Understanding where one ends and the other begins is the most important step in setting your coverage correctly.

What Are the Core Coverage Categories in an HO-6 Policy?

A typical HO-6 policy covers five main areas:

• Interior and improvements (dwelling coverage): Your floors, cabinets, built-ins, fixtures, and any upgrades inside the walls. This fills in where the master policy stops, which is often at the bare studs.
• Personal property: Your furniture, clothing, electronics, and other belongings, whether damaged at home or stolen away from home.
• Personal liability: If a guest is injured in your unit or you accidentally damage a neighbor's unit, this pays legal and medical costs. Our condo liability FAQ covers how that exposure works in Georgia.
• Loss of use: If a covered loss makes your unit unlivable, this pays for temporary housing and extra living expenses during repairs.
• Loss assessment: Helps pay your share when the association bills all owners for a covered loss that exceeds the master policy limit.

What Is the Difference Between a Bare-Walls and All-In Master Policy?

The key is knowing where the master policy ends and your HO-6 begins. Many associations use a bare-walls master policy, meaning everything from the drywall inward is your responsibility. Others use all-in coverage, which extends further into the unit. Reading your association documents is the only reliable way to set your dwelling limit correctly and avoid a gap at claim time. The replacement cost versus actual cash value comparison is also relevant here when you set your personal property limit, since that choice affects how much you collect after a loss.

Does an HO-6 Policy Cover Flood Damage?

Standard HO-6 policies do not cover flood. If your condo is in a flood-prone area, a separate flood policy is required. Our FAQ on why flood is excluded from home policies explains how that exclusion works and what a standalone flood policy covers. This is one of the more common gaps condo owners discover only after a claim has already occurred.

What Does an HO-6 Claim Actually Look Like in Practice?

For example, a pipe bursts in the unit above yours and ruins your kitchen. The master policy may repair the building shell, but your HO-6 pays to replace your cabinets, flooring, and damaged appliances. That repair could easily reach $18,000, all minus your deductible. Without an HO-6 policy, that cost falls entirely on you.

For example, a condo owner in Midtown Atlanta upgrades her kitchen with custom cabinetry worth $12,000. If her dwelling coverage limit is set to the original bare-studs value and not updated after the renovation, she collects far less than the improvement is worth after a fire. Keeping the limit current after any upgrade is essential.

To confirm whether your condo limits match your association's master policy and your actual unit improvements, request a free coverage review and a licensed advisor will check the fit.