Question 1: Are you sure your condo is insured the right way?
Question 2: Do you know whether your building has a master condo policy — or if you’ve been quoted homeowners (HO3) policy by mistake?
In this message, we’ll explain the difference between HO3 and HO6 policies, why it matters, and how to make sure you and your unit are fully protected.
If you live in a condominium (2 units or many units) your property must be insured under two policies:
- A Condo Master Policy (held by the association)
- An HO6 Condo Policy (carried by you, the unit owner)
But here’s where problems happen — especially during purchase or refinance:
Sometimes, a quote or existing policy is written as an HO3 (homeowners) policy, which is meant for standalone, single or multi family homes — not attached units like condos.
🚨 Why That’s a Problem:
- An HO3 assumes you’re responsible for the entire building, including the roof, exterior, and other units — which isn’t true in a condo setting.
- If your lender receives an HO3 instead of verifying a master condo policy + HO6, it could lead to closing delays, over-insurance, or coverage gaps.
- Worse, if there’s a claim, you could end up paying for damage the master policy should have covered — or vice versa.
🛠️ The Right Setup:
If you’re in a condo:
- The association has to carry a master condo policy (often referred to as a “walls-in” or “all-in” policy, depending on what’s covered).
- You, the unit owner, should carry an HO6 condo policy to protect:
- Interior walls and upgrades (if the master policy stops at bare walls)
- Personal property
- Loss of use (if you’re displaced)
- Personal liability
- Loss assessment from the condo association
⚠️ One More Thing:
Everything might seem fine — until it isn’t. The biggest risk with having the wrong policy (like an HO3 on a condo) is that you may not know it’s a problem… until you file a major claim.
At that point, the insurance company can deny the claim, stating that the wrong type of policy was in place for the property type. That means tens or hundreds of thousands of dollars in uncovered losses — all because the setup was wrong from the start.
Don’t let a paperwork mistake become a financial disaster. Let us review your policy now — not after a loss.
💡 Bottom Line:
If you’re living in or buying a condo and your policy says HO3, there’s a good chance it’s not the right fit.
Let Vargas & Vargas Insurance help you sort it out. We specialize in properly structuring condo insurance, whether you’re an owner, trustee, or part of a homeowners association.
📞 Let’s Make Sure You’re Covered Correctly:
- Call us: 617-298-0655
- Text us: 617-409-0329
- Visit: vargasinsurance.com
- Email: customerservice@vargasinsurance.com
Let’s eliminate confusion — and get you covered the right way the first time.
