What happens if a pipe bursts in your condo and you’re the only one affected—are you covered?
What if your lender is worried about your unit’s walls, ceilings, or flooring—does your current policy account for that?
In this article, we’ll clarify exactly what your HO6 condo insurance policy covers (and doesn’t), and why understanding the limits of your condo association’s master policy could save you thousands of dollars.
By the end, you’ll know how to protect your personal property, avoid surprise repair costs, and ensure your coverage meets both your lender’s and your own needs.
What Is an HO6 Condo Insurance Policy?
An HO6 condo policy is personal insurance for condo unit owners. It’s designed to cover what your condo association’s master insurance policy doesn’t.
In most cases, your condo association’s policy only protects the structure’s exterior and shared spaces, like the roof, hallways, and lobbies. But inside your unit? That’s your responsibility—and that’s where your HO6 comes in.
Here’s what your HO6 policy typically covers:
- Personal Property – Your furniture, clothing, electronics, and personal items.
- Loss of Use – Pays for additional living expenses if your unit becomes uninhabitable due to a covered event (like fire or water damage).
- Personal Liability – Covers you if someone is injured in your condo or if you’re sued.
- Medical Payments to Others – Pays for medical expenses if a guest is injured on your property.
- Legal Defense – Helps cover your costs if a liability claim turns into a lawsuit.
Why Your Lender Cares About the Inside of Your Condo
Most lenders require you to carry an HO6 policy to ensure the interior structure of your unit—like walls, ceilings, floors, and fixtures—is protected. These aren’t covered by the master policy unless damage meets specific, often high, thresholds.
So if your lender is concerned about your walls and flooring, they’re right to be. You could be underinsured and not even know it.
Where Your HOA Master Policy Stops—and You Start Paying
Here’s where things get risky: many condo associations have high deductibles on their master policies, or policies that only apply when multiple units are affected. That means damage that only affects your unit often isn’t covered.
Example: The $24,000 Mistake
Let’s say a pipe bursts in your condo, causing $24,000 in water damage. Now consider:
- Your condo association has a $25,000 deductible on their master policy.
- Only your unit is affected.
In this scenario, you’re responsible for the full $24,000—because the damage didn’t exceed the deductible. The master policy won’t cover it.
The Fix: Add Interior Dwelling Coverage to Your HO6 Policy
To protect yourself from situations like this, make sure your HO6 policy includes unit interior dwelling coverage—often referred to as building property coverage.
This add-on helps cover:
- Damage to walls, floors, ceilings, cabinets, fixtures, and more.
- Gaps left by the condo association’s master policy deductible.
In the burst pipe example, having at least $25,000 in dwelling coverage on your HO6 policy would mean you pay nothing out of pocket—your insurance would cover the full cost.
Review Your Coverage Before You Need It
Most condo owners don’t review their insurance until it’s too late. Don’t make that mistake. Here’s how to avoid costly surprises:
- Step 1: Get a copy of your condo association’s master policy.
- Step 2: Check the policy deductibles and look for any “per unit” language.
- Step 3: Talk to your insurance agent to confirm your HO6 policy includes sufficient dwelling coverage.
- Step 4: Adjust your policy limits to align with the master policy requirements.
Don’t Wait Until You Have a Claim—Protect Yourself Today
At the end of the day, we’ve all encountered confusion and frustration around what our condo insurance actually covers. This is especially true if your HOA has a high deductible or a limited master policy. Now that you’ve learned from Vargas & Vargas Insurance how to identify and fix coverage gaps, it’s time to take the next step.
Contact Vargas & Vargas Insurance today at 617-298-0655 to review your condo insurance and make sure you’re fully protected. Whether you’re a first-time condo buyer or a long-time owner, we’ll help you tailor your HO6 policy to meet your exact needs.
Don’t wait for a costly surprise. Reach out to our experienced team now and gain peace of mind.
