Condo Insurance: What HO-6 Covers and How Much You Need
Last updated 06/02/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
Condo insurance, also called HO-6 insurance, is a homeowners insurance policy designed specifically for condominium unit owners, covering personal property, the interior of the unit, liability, and the gap between what the condo association’s master policy covers and what the unit owner is responsible for.
It separates into four primary coverage types.
- Personal property coverage: Pays to repair or replace furniture, electronics, clothing, and other belongings damaged by a covered event such as fire, theft, or water damage from a burst pipe.
- Dwelling coverage (walls-in): Covers the interior structure of your unit — floors, ceilings, built-in appliances, and fixtures — that the condo association’s master policy does not protect.
- Liability coverage: Pays for legal costs and damages if a guest is injured inside your unit or if you accidentally damage another unit owner’s property.
- Loss of use coverage: Covers temporary housing and living expenses if a covered loss makes your unit uninhabitable during repairs.
The core reason condo insurance exists as its own product is that condo ownership splits responsibility between you and the association. The master policy covers the building shell and common areas; your unit’s interior and your belongings are yours to protect.
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What a condo association master policy covers vs. what it does not
Condo associations carry a master insurance policy that covers the building structure, roof, exterior walls, elevators, lobbies, and shared amenities. What it does not cover depends on which of two policy types the association carries, according to the National Association of Insurance Commissioners.
| Master Policy Type | What It Covers | What You Must Cover |
|---|---|---|
| Bare walls-in | Building structure and common areas only | Everything inside your unit: fixtures, flooring, cabinets, appliances, and personal property |
| All-in (or all-inclusive) | Building structure plus original fixtures, flooring, and cabinets inside units | Upgrades above original builder-grade finishes and all personal property |
Most associations have a bare-walls-in policy. If yours does, your HO-6 policy’s dwelling coverage needs to be broad enough to cover the full cost of rebuilding your unit’s interior from the studs inward.
How much condo insurance coverage do you need?
The right coverage amount depends on the type of master policy your association carries and the value of your unit’s interior and belongings.
- Dwelling coverage: Request a copy of your association’s master policy and identify the coverage type. For a bare walls-in policy, estimate the cost to rebuild your unit’s interior, including flooring, cabinetry, countertops, bathroom fixtures, and built-in appliances.
- Personal property: Create a home inventory listing the replacement value of your furniture, electronics, clothing, and valuables. Most financial advisors recommend actual cash value coverage as a minimum, but replacement cost coverage pays more at the time of a claim.
- Liability: Most policies start at $100,000 in liability coverage. If you have significant assets to protect, increasing this limit to $300,000 or adding an umbrella insurance policy provides a stronger safety net.
- Loss assessment coverage: This optional add-on covers your share of costs when the association files a claim that exceeds the master policy limits, such as damage to common areas from a major storm. It is worth adding if your building is in an area prone to weather events.
Pro Tip
Your condo association’s governing documents — specifically the declaration and bylaws — define exactly where the association’s insurance responsibility ends, and yours begins. This boundary is sometimes called the “unit boundary” definition. Read this section before purchasing your HO-6 policy to avoid gaps. If the documents are unclear, ask the association’s property manager for written clarification before selecting your dwelling coverage limit.
What condo insurance covers and what it excludes
Standard HO-6 policies cover damage from a defined list of perils. Understanding what is and is not included prevents surprises at claim time.
| Typically Covered | Typically Excluded |
|---|---|
| Fire and smoke | Flood damage (requires a separate flood policy) |
| Theft and vandalism | Earthquake damage (requires a separate policy in most states) |
| Water damage from burst pipes or appliance leaks | Water backup from sewer or drain (optional add-on) |
| Wind and hail (varies by location) | Mold (unless caused by a covered water event) |
| Liability for injuries in your unit | Business property kept in the unit |
| Temporary housing during repairs | High-value items above scheduled limits (jewelry, art, collectibles) |
Flood damage is the most significant exclusion. If your condo is in a flood zone, a separate National Flood Insurance Program (NFIP) policy or a private flood policy covers water that enters the building from outside.
How condo insurance differs from renters insurance
Renters insurance and condo insurance share a similar structure: both cover personal property and liability. But they differ in one key way: condo insurance includes dwelling coverage for the unit’s interior structure, which renters do not own and therefore do not need to insure.
A renter’s policy is typically less expensive because it carries no dwelling component. An HO-6 policy costs more but is necessary because,e as a condo owner, you are responsible for the walls, floors, and fixtures inside your unit after a covered loss.
How to choose and purchase condo insurance
Getting the right policy requires understanding your association’s coverage before shopping for your own.
- Get a copy of the master policy: Contact your condo association or property manager and request the current master insurance policy declaration page. Identify the policy type (bare walls-in or all-in) and the coverage limits.
- Determine your dwelling coverage need: For a bare walls-in master policy, estimate the per-square-foot cost to rebuild your unit’s interior in your area. A licensed contractor or your insurer can help with this estimate.
- Inventory your personal property: Walk through your unit and document your belongings. Use a home inventory app or a spreadsheet. Note purchase prices or replacement values for major items. Store the inventory offsite or in the cloud.
- Choose actual cash value vs. replacement cost: Replacement cost coverage pays the full cost to replace a damaged item with a new equivalent. Actual cash value deducts depreciation. Replacement costs more in premiums but pays significantly more at claim time.
- Compare quotes from multiple insurers: Premiums vary significantly across insurers for identical coverage. Compare at least three quotes and review the deductible options — a higher deductible lowers your premium but increases your out-of-pocket cost at claim time.
- Check for loss assessment coverage: Confirm whether your policy includes loss assessment coverage and what the limit is. Increasing this limit to $50,000 typically adds only a small amount to the annual premium.
- Review the liability limit: Confirm your liability limit is sufficient to protect your assets. If you own significant investments or have a high income, consider a higher limit or adding an umbrella policy.
Average cost of condo insurance
Condo insurance costs significantly less than standard homeowners insurance because you are only insuring the interior of your unit, not the building structure. The national average for HO-6 coverage is approximately $455 per year, or about $38 per month, according to the Insurance Information Institute.
Several factors affect your specific premium: the location of the building (urban areas and coastal regions cost more), the value of your personal property, the dwelling coverage amount, your claims history, the deductible you choose, and whether you bundle your condo policy with an auto insurance policy from the same carrier.
Compare home insurance rates and read verified reviews at SuperMoney’s home insurance reviews.
Good to know: If you financed your condo purchase with a mortgage, your lender will almost certainly require you to carry HO-6 insurance and name them as an additional insured on the policy. Even if your lender does not require it, carrying condo insurance protects your equity in the unit. The home equity you have built is at risk if a fire or liability judgment exceeds the association’s master policy coverage.
Frequently asked questions
Is condo insurance required by law?
No state requires condo owners to carry HO-6 insurance. However, most mortgage lenders require it as a condition of the loan, and some condo associations require owners to carry a minimum amount of HO-6 coverage under their governing documents. Even without a mandate, going uninsured leaves your personal property, interior finishes, and liability exposure unprotected.
Does condo insurance cover water damage from the unit above?
If water leaks from an upstairs unit and damages your unit, your HO-6 policy’s dwelling and personal property coverage typically applies. You would then file a claim with your insurer, who may pursue the upstairs neighbor’s liability coverage for reimbursement. Whether the upstairs neighbor’s policy covers their liability depends on whether they carry an HO-6 policy with liability coverage.
What is loss assessment coverage on a condo policy?
Loss assessment coverage pays your share of costs when the condo association files a claim that exceeds the master policy limits and then assesses all unit owners for the shortfall. For example, if a storm causes $2 million in damage to common areas and the master policy limit is $1.5 million, the association may assess each unit owner for a portion of the remaining $500,000. Loss assessment coverage picks up your share, up to your policy limit.
Does my condo insurance cover damage I cause to another unit?
Yes, within the liability section of your HO-6 policy. If, for example, a pipe bursts in your unit and water damages your downstairs neighbor’s ceilings and belongings, your liability coverage pays for the damages you are legally responsible for, up to your policy limit.
Related reading on homeownership and insurance
- Renters insurance — covers personal property and liability for non-owners, and shows how HO-6 coverage builds on the same foundation with the addition of dwelling coverage.
- Umbrella insurance — a supplemental liability policy that sits above your condo policy and extends protection when a single claim exceeds your HO-6 liability limit.
- Home inspection — relevant when purchasing a condo, as an inspection surfaces interior conditions that affect both your purchase decision and your insurance coverage needs.
- Closing costs — the upfront expenses paid when purchasing a condo, which include your first year’s insurance premium in many transactions.
- Private mortgage insurance — a separate insurance product required by some lenders on low-down-payment mortgages, often confused with HO-6 condo insurance.
Key takeaways
- Condo insurance (HO-6) covers the interior of your unit, personal property, liability, and loss of use — the condo association’s master policy covers the building exterior and common areas.
- Whether the master policy is bare walls-in or all-in determines how much dwelling coverage you need to purchase on your own HO-6 policy.
- Flood damage is excluded from standard condo insurance and requires a separate policy.
- Loss assessment coverage protects you when a major claim exceeds the association’s master policy limit and the shortfall is charged to all unit owners.
- The national average HO-6 premium is approximately $455 per year, though your rate depends heavily on location, dwelling coverage amount, and personal property value.
- Replacement cost coverage pays more at claim time than actual cash value coverage because it does not deduct for depreciation.
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