What Do You Need to Know About Condo Insurance HO6 Policy?

What Does a Condo Insurance (HO6) Policy Cover?

Let’s look at the specifics of HO6 insurance coverage:

Interior Walls

The coverage you need for your walls depends on what your Homeowners Association (HOA) provides. If your condo insurance master policy gives you all-in coverage, you won’t have to purchase dwelling coverage.

If your HOA covers only the bare walls, then you need dwelling coverage. Dwelling coverage protects you and your belongings from all named perils.

Liability and Medical Bills

HO6 insurance policy covers your guests should they injure themselves on your property. Your condo policy will cover medical bills for any injuries your guests sustain at your premises, as well as any legal fees if they should file a lawsuit against you.

Your insurance provider may include $100,000 in liability coverage in your policy. If you wish, you can scale it up to $500,000 as per your needs.

Condo Insurance (HO6) Policy Covers Personal Property

Condo insurance protects your personal belongings from theft, damage, or loss, but it’s important that you list all of the items you want covered. The policy provides coverage to your laptops, furniture, appliances, and other belongings.

The usual limit for property claims is around 50% of the condo coverage. But it’s always a good idea to ask your insurance experts about the exact amount.

Keep in mind that you won’t be able to cover certain belongings such as expensive jewelry, fur, and art collections. For those items, you should consider personal articles floater insurance.

Water Damage

An HO6 insurance policy covers selective water damage. This can be burst pipes or water from common areas such as roofs, hallways, etc.

For example, if your unit gets damaged because water leaked from the roof of the building and damaged your built-in appliances, then your HO6 policy will cover the repairs or replacements. If you need to stay at a hotel until then, your insurance will also cover the extra expenses.

It’s important to note that a standard condo insurance policy will not cover flooding. You’ll require separate flood insurance if you reside in at-risk areas.

Additional Living Expenses (ALE)

ALE coverage comes in handy when damage and repair work prohibits you from living in your condo. For instance, if your condo catches on fire, you’ll most probably be living away from your unit while someone repairs and renovates it. ALE provides compensation for any housing and living expenses incurred while your condo was uninhabitable.

Condo Insurance (HO6) Policy Covers Loss Assessment

As a shared owner of a condominium, you’re liable to pay for any injuries in the premises or damage to the condo building and common areas. Loss assessment coverage pays the amount you’re liable for which isn’t covered by your master policy.