Why HO-6 exists — the master-policy gap
Your condo association carries a master policy that covers the building structure, the roof, common areas (hallways, lobbies, pools, parking), and association liability. What that master policy does NOT cover varies dramatically based on which of three master-policy types your HOA selected — and that's exactly where your HO-6 policy fills the gap.
Bare walls master policy: the HOA covers the structural framing, exterior walls, roof, and common areas. Everything from the unfinished interior surfaces inward — drywall, paint, flooring, cabinets, fixtures, appliances, plumbing, wiring inside walls — is your responsibility. Most condo conversions and budget HOAs use this. You need maximum HO-6 dwelling coverage.
Single entity master policy: HOA covers the structure plus original builder-grade fixtures and finishes (original cabinets, original carpet, original countertops). Any upgrades you've made are yours to insure. This is the most common middle-ground policy.
All-in (all-inclusive) master policy: HOA covers everything in the unit as originally built, including original fixtures and upgrades made by previous owners. You only need to insure your personal property, liability, and upgrades you personally added. Premium is lowest with this master type — but verify with your HOA, don't assume.
Get a copy of your HOA's master policy declaration page. Read what's covered. Size your HO-6 dwelling limit to fill the gap.
What an HO-6 policy covers
Standard HO-6 structure mirrors a homeowners policy but with smaller dwelling limits and added condo-specific coverages.
- Dwelling (Coverage A) — interior finishes, fixtures, cabinets, flooring, plumbing/wiring inside your walls. Size to match master-policy gap ($10K-$100K typical)
- Personal property (Coverage C) — furniture, electronics, clothing, etc. ACV default; replacement cost is a critical upgrade
- Loss of use (Coverage D) — hotel and meal costs if your unit is uninhabitable. 20-40% of dwelling
- Personal liability (Coverage E) — $100K standard, $300K-$500K recommended
- Medical payments to others (Coverage F) — $1K-$5K, no-fault for minor guest injuries
- Loss assessment — covers your share of HOA assessments for covered losses ($1K standard, increase to $25K-$50K)
- Standard exclusions: flood, earthquake, normal wear, mold, sewer backup (add as endorsements)
Loss assessment — the underrated coverage
When a covered loss exceeds the HOA's master policy limits — or hits the HOA's deductible — the association can assess all unit owners for their share. A roof claim with a $25,000 wind/hail deductible split across 40 units is $625 per owner. A lawsuit settlement that exceeds the HOA's $2M liability policy can hit owners for tens of thousands each.
Loss assessment coverage on your HO-6 pays your share. Standard policies include $1,000 of loss assessment, which is almost nothing. Raise it to $25,000 or $50,000 — the cost is usually $10-$40/year and it protects against the single most common condo claim type.
In coastal states (FL, TX, NC, SC), where master-policy wind/hail deductibles can run 2-5% of the building value ($100K-$500K), loss assessment is essential. Without it, a single hurricane can leave you with a four- or five-figure assessment bill.
Premium drivers
Location and wind exposure — coastal FL, TX, NC, SC, NY (Long Island), and CA (wildfire/earthquake) units run 2-4x inland premiums.
Master-policy type — bare walls forces a higher HO-6 dwelling limit, raising premium 20-40% over an all-in master.
Unit value, finishes, and upgrades — granite/marble counters, hardwood floors, custom cabinetry all raise dwelling-limit requirements.
Claims history — both yours and your HOA's. Buildings with prior water-damage claims pay more.
Building age — older buildings (pre-1980) with original plumbing run higher water-damage premiums.
Deductible — $500-$2,500 standard. $1,000 is the value sweet spot. Wind/hail deductible may be separate and percentage-based in coastal states.
Credit-based insurance score (in states that allow it).
What's NOT covered without endorsements
Flood — never covered by HO-6. Required if you're in FEMA AE/VE/A zone with a mortgage. NFIP condo contents policy is $50K dwelling / $100K contents max. Private flood often cheaper and broader in high-risk markets.
Earthquake — never standard. Critical in CA, OR, WA, AK, parts of NV and MO. Add as endorsement (often through CEA in California) or standalone policy.
Sewer backup / sump pump failure — usually excluded, add as endorsement ($30-$80/year). Common high-rise claim source.
Mold — typically capped at $5,000-$10,000. Higher limits available by endorsement.
Short-term rental — if you rent your condo on Airbnb/VRBO, standard HO-6 may exclude losses during rental periods. Add a home-sharing endorsement or get a landlord (DP-3) policy.
Jewelry, art, collectibles above standard sub-limits ($1,500-$2,500). Add a scheduled personal property endorsement with appraisals.
What to do before you buy
1) Request the HOA master-policy declaration page from your property manager. Identify which of the three master-policy types applies.
2) Walk through your unit and estimate what it would cost to redo interior finishes from drywall in — flooring, cabinets, countertops, fixtures, appliances. That's your minimum dwelling (Coverage A) limit.
3) Inventory your personal property by room. Use replacement cost (not depreciated value) to size Coverage C.
4) Set liability at $300K minimum; $500K if you have meaningful assets. The cost difference is $20-$60/year.
5) Raise loss assessment to $25K-$50K. This is the most under-bought condo coverage.
6) Confirm flood zone. If AE/VE/A, get an NFIP or private flood quote before closing.
7) In coastal states, ask whether wind/hail is in the policy or requires a separate wind policy through the state pool (Citizens FL, TWIA TX, NCJUA NC).
8) Get at least three quotes — HO-6 premiums vary 40-80% between carriers for identical risk.