Condo Insurance Explained: How HO-6 Coverage Works for Unit Owners

Written by Walter J., insurance research contributor focused on homeowners insurance at Insurance Policy Authority.

Condo insurance works differently from standard homeowners insurance, which often leads to confusion for first-time condo buyers. While you may own your unit, you likely don’t own the entire building — and that distinction affects how insurance coverage applies.

This guide explains how condo insurance (commonly called an HO-6 policy) works in the U.S., what it covers, what it doesn’t, and how it fits alongside the condo association’s master policy.

What Condo Insurance Is

Condo insurance is designed for people who own a condominium unit. It’s commonly referred to as an HO-6 policy.

Unlike a traditional homeowners policy, an HO-6 policy does not insure the entire building. Instead, it covers the parts of the property the unit owner is responsible for, along with personal belongings and liability protection.

How Condo Insurance Differs From Homeowners Insurance

The key difference comes down to ownership and responsibility.

• Homeowners insurance covers the entire structure and the homeowner’s belongings.

• Condo insurance covers the unit owner’s interior space, personal property, and certain liabilities.

In most condo communities, the condo association carries a master insurance policy that covers shared areas of the building. The HO-6 policy fills the gaps.

Understanding the Condo Association’s Master Policy

Every condo association has a master policy, but coverage can vary.

Common types include:

• Bare walls coverage – covers only shared structure

• Single-entity coverage – covers some interior features

• All-in coverage – covers most original fixtures and finishes

Because of these differences, unit owners should review the association’s master policy to understand where its coverage ends and personal responsibility begins.

What Condo Insurance Typically Covers

An HO-6 policy usually includes several key types of coverage.

Dwelling Coverage (Unit Interior)

This covers parts of the unit the owner is responsible for, such as:

• Interior walls

• Flooring

• Cabinets and built-ins

• Fixtures and improvements

Coverage needs depend heavily on what the master policy includes.

Personal Property Coverage

This protects personal belongings like furniture, clothing, and electronics against covered losses such as fire or theft.

Personal Liability Coverage

Liability coverage helps protect the unit owner if someone is injured inside the unit or if the owner causes damage to another unit.

Loss of Use Coverage

If the unit becomes uninhabitable due to a covered loss, this coverage may help pay for temporary housing and related expenses.

What Condo Insurance Usually Does Not Cover

Like all insurance policies, HO-6 coverage has limitations.

Common exclusions include:

• Damage covered by the condo association’s master policy

• Flood or earthquake damage (requires separate policies)

• Wear and tear or maintenance issues

• Certain high-value personal items above policy limits

Coverage responsibilities can overlap or leave gaps if policies are not coordinated properly.

Common Condo Insurance Misunderstandings

Some condo owners assume:

• The association’s insurance covers everything

• They don’t need insurance if their unit is small

• Condo insurance works the same as homeowners insurance

In reality, failing to carry adequate HO-6 coverage can leave unit owners exposed to significant financial risk.

Key Takeaways for Condo Owners

• Condo insurance is designed for unit owners, not the entire building

• The association’s master policy and HO-6 policy work together

• Coverage responsibilities vary by community

• Interior coverage and liability protection are critical

• Reviewing both policies helps avoid coverage gaps

Condo insurance helps protect what you own — even when you don’t own the entire property.

---

Check out our Amazing!

Homeowners Insurance Starter Guide