What is a HO-6 Policy?

condominiumsAn HO-6 policy is insurance covering the interior of a condominium.  In most cases, the association’s master policy does not cover the interior and only applies to common areas.  By “interior” we mean: carpet, cabinets, drywall, fixtures, and doors, upgrades, personal liability, and personal property.

For this reason alone, an HO-6 can be well worth the low cost of $15-$30 per month.  But for many home buyers, an HO-6 policy is a precondition for underwriting approval.   Under the new lending rules, an HO-6 insurance policy must provide coverage for no less than 20% of the condominium unit’s appraised value.


A secondary benefit is that your HO-6 could provide gap coverage for the sometimes high deductibles on the association’s master policy.  HO-6 policies can also provide coverage for assessments applied an individual unit due to a direct loss to the condominium.  These are features you’ll certainly want to discuss with your agent.


Comments 3

  1. Steve Sarantos

    Your H06 comments are well taken. Clients would also be well advised to make sure and have a healthy amount of loss assesment coverage on there H06 policy for better protection. You can typically get $10,000 to $20000 of additional coverage for as little as $1 to $2 per month!!!!!!!