HO-6 Insurance: What It Covers and What It Does Not
HO-6 insurance explained: what a condo owner's policy covers (walls-in items, belongings, liability, loss assessment), what it leaves out, and how to set it up.
Quick answer
HO-6 insurance is the condo owner's own policy. It usually covers the parts of the unit the master policy leaves to you (drywall, floors, cabinets, fixtures and upgrades, depending on the master policy type), your belongings, extra living costs after a covered loss, your personal liability, and a small amount of loss assessment for charges the association passes on. It usually does not cover flood, earthquake, wear and tear, slow leaks, sewer backup without an add-on, or anything the master policy already insures.
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The Short Answer: HO-6 Insurance Fills What the Master Policy Leaves Out
HO-6 insurance is the policy a condo owner buys for their own unit. It is sometimes called “condo insurance” or a “walls-in” policy. The association’s master policy insures the building. Your HO-6 picks up where the master policy stops.
That is why no two HO-6 policies should look alike. How much your HO-6 has to cover depends on two documents you do not control: the association’s master policy and your declaration (the CC&Rs), which together decide where the building’s coverage ends and yours begins.
A typical HO-6 has six parts. The labels below come from the standard unit-owners form (ISO HO 00 06) that many insurers base their policies on. Your own policy may use different names, so check its declarations page.
| Part | What it usually covers |
|---|---|
| Coverage A: building property | The parts of the unit you are responsible for insuring: often drywall, flooring, cabinets, built-in appliances, fixtures, and any upgrades you or a past owner added |
| Coverage C: personal property | Your furniture, clothes, electronics and other belongings, in the unit or away from it |
| Coverage D: loss of use | Extra living costs, such as a hotel, if a covered loss makes the unit unlivable |
| Coverage E: personal liability | Claims against you for injury or property damage, such as a leak from your unit that damages a neighbor’s |
| Coverage F: medical payments | Small medical bills for guests hurt in your unit, regardless of fault |
| Loss assessment | Your share of a cost the association passes to owners after a covered loss, such as part of the master policy deductible |
What HO-6 Insurance Usually Does Not Cover
Most HO-6 surprises come from the same short list. Read your own policy for each one.
| Not covered, or only with an add-on | Why it matters in a condo |
|---|---|
| Flood (water from outside) | Needs a separate flood policy. Ground-floor and coastal units are most exposed |
| Earthquake and earth movement | Usually excluded; sold as a separate policy or endorsement in some areas |
| Sewer and drain backup | Often excluded unless you add water backup coverage. In a stacked building, a blocked shared drain can back up into your unit |
| Slow leaks and seepage over weeks or months | Gradual damage is a common exclusion. A sudden burst is usually covered; a drip you ignored usually is not |
| Wear, tear, rot and mold | Maintenance problems are not insured losses. Mold is often capped or covered only after a covered water loss |
| Frozen pipes when the heat was off | Many policies exclude freezing damage unless you kept the heat on or shut off and drained the water |
| Fixing the thing that broke | The policy pays for water damage, not usually the cracked pipe or worn-out water heater itself |
| What the master policy covers | Your HO-6 does not pay twice. It covers what the master policy leaves out, plus deductibles you are assigned |
One more limit is easy to miss. On the standard form, Coverage A only pays for damage from a listed set of causes (“named perils”), such as fire, theft and sudden water discharge. Many insurers offer an add-on, often called special or “open perils” coverage for the unit (ISO HO 17 32), that covers any cause not specifically excluded. Ask your agent which one you have.
Loss Assessment Limits Are Often Low
The standard HO-6 form includes only $1,000 of loss assessment coverage. If your declaration can charge a master policy deductible to the unit where a leak started, or to the units that were damaged, that limit may cover only a small part of the bill. Ask your agent about raising it. Our guide to HOA insurance deductibles explains how deductibles get passed to owners.
How Much HO-6 Coverage Do You Need?
The building part of your HO-6 (Coverage A) depends on the master policy type. In short:
- Bare walls master policy: your HO-6 has to rebuild nearly everything inside the unit: drywall finishes, floors, cabinets, fixtures and built-in appliances.
- Single entity master policy: the association insures the unit as it was originally built. Your HO-6 covers upgrades and belongings.
- All-in master policy: the association insures the interior, including many upgrades. Your HO-6 still needs belongings, liability, loss of use and loss assessment.
Our page on what an HOA master policy covers inside your walls explains each type and how to find out which one your building has. For how the master policy and HO-6 fit together on a claim, see master policy vs HO-6.
State law can set the line too. In Florida, the association’s policy leaves out floor, wall and ceiling coverings, electrical fixtures, appliances, water heaters, built-in cabinets and countertops, and window treatments, so owners insure them (Florida condo law). In Colorado, in stacked buildings, the master policy must include the units but not their finished interior surfaces of walls, floors and ceilings (Colorado condo law).
Is HO-6 Insurance Required?
Whether you must carry one usually comes from your lender or your association, not a general state law:
- Your lender. Fannie Mae’s Selling Guide (B7-3-04) requires the borrower to carry unit coverage when the master policy does not cover the unit’s interior and improvements, in an amount that would restore the unit after a loss. Many lenders follow the same rule.
- Your declaration. Some declarations require every owner to carry an HO-6, sometimes with a minimum liability limit, and to show proof each year. Some state laws let the board set this rule; in Illinois, for example, the board may require owners to carry liability coverage for damage to other units (Illinois condo law).
Even with no rule, going without an HO-6 means you pay for your belongings, your liability to neighbors, and any deductible the association assigns to you.
Questions to Ask Your Insurance Agent
Bring a copy of the master policy’s certificate or declarations page, and the insurance section of your declaration. Then ask:
- “Based on this master policy type, how much Coverage A do I need to rebuild my unit’s interior and upgrades?”
- “Is my Coverage A named perils or open perils? What would it cost to upgrade?”
- “What is my loss assessment limit, and can it be raised to match the master policy deductible?”
- “Do I have water backup coverage? What is the limit?”
- “How does the policy treat water damage that builds up over time, mold, and frozen pipes?”
- “What is my personal liability limit if a leak from my unit damages the units below?”
- “If I rent the unit out, does this policy still apply, or do I need a landlord version?”
Check Your Coverage After Any Renovation
New floors, a new kitchen or a remodeled bathroom raise what it costs to rebuild your unit. Tell your agent after any upgrade so Coverage A keeps up, especially if your master policy is bare walls or single entity.
Practical Examples
Example 1: A Kitchen Fire in a Bare Walls Building
A pan fire damages the cabinets, counters and flooring. The master policy covers the structure behind the walls. Because it is a bare walls policy, the HO-6 pays for the cabinets, counters, flooring and the owner’s damaged belongings, minus the HO-6 deductible. If Coverage A was set too low, the owner pays the gap.
Example 2: Your Washing Machine Hose Splits
Water soaks your floor and leaks into the unit below. Your HO-6 may pay for your own floors and belongings (Coverage A and C) and the downstairs owner’s damage if you are found responsible (Coverage E). If the association files on the master policy and your declaration assigns its deductible to your unit, loss assessment may pay part of that charge, up to its limit. Our guide to a condo leak into the unit below walks through who pays.
Example 3: Water Backs Up Through the Floor Drain
A blocked building drain sends water up through your shower. Your HO-6 pays for the damage only if you bought water backup coverage. The association may still owe for the blocked line if it is a common element. See sewer backups.
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Frequently Asked Questions
What does HO-6 insurance cover?
Usually the parts of your unit the master policy leaves to you (often drywall, floors, cabinets, fixtures and upgrades), your belongings, extra living costs after a covered loss, your personal liability, small medical payments for guests, and a limited amount of loss assessment for charges the association passes to owners. How much building coverage you need depends on the master policy type.
What does HO-6 insurance not cover?
Commonly excluded or limited: flood, earthquake, sewer and drain backup unless you add it, slow leaks and seepage, wear and tear, mold beyond a small limit, frozen pipes when the heat was not kept on, the cost to fix the broken item itself, and anything the master policy already covers.
Is HO-6 the same as walls-in coverage?
People often use the terms the same way. Walls-in usually means the interior of the unit, which an HO-6 covers when the master policy does not. Whether you need a lot or a little of that coverage depends on whether your master policy is bare walls, single entity or all-in.
Is HO-6 insurance required?
Often, yes, usually because your lender or your declaration requires it. Fannie Mae's Selling Guide requires unit coverage when the master policy does not cover the unit's interior and improvements. Some declarations require every owner to carry an HO-6. Check your loan documents and declaration.
How much loss assessment coverage should I have?
The standard HO-6 form includes $1,000. Compare that with the master policy deductible and with what your declaration says about who pays it. If a large deductible could be charged to your unit, ask your agent about raising the limit.
Important Disclaimer: This article describes common HO-6 coverage patterns. It is general educational information, not insurance or legal advice. Policy forms, endorsements and exclusions vary by insurer and state, and every master policy and declaration is different. Always read your own policy and governing documents and talk to a licensed insurance agent before you choose or change coverage.
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Who writes CondoWorkbook
CondoWorkbook guides are written and published by S-Block Technologies. Each guide is based on how condo declarations, CC&Rs, bylaws and master insurance policies usually split repairs, and on the state laws it names. We update a guide when a law changes or a reader tells us something is wrong. We are not lawyers, and no lawyer reviews these guides, so always check your own documents.
Last updated . Corrections: business@sblocktechnologies.com. More about us
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