Condominium unit-owner policy covering specified interior property and personal risks alongside the association master policy.
An HO-6 policy is condominium unit-owner insurance covering specified interior property and personal risks alongside the association’s master policy.
HO-6 is the common policy-form label. The actual coverage depends on the declarations, policy language, endorsements, limits, and deductibles issued to the unit owner.
Condo ownership divides insurance responsibility. The association insures project property under the master policy, while the owner may need coverage for interior fixtures and finishes, improvements, personal property, additional living expense, personal liability, and certain assessments.
The lender’s main concern is the property securing the mortgage. If the master policy does not cover all required portions of the unit or has a relevant per-unit deductible, the lender may require HO-6 building-property coverage and a standard Mortgagee Clause.
Association dues that fund the master premium do not create personal-property, liability, loss-of-use, or every unit-interior coverage for the owner. Those needs must be evaluated separately.
Borrowers usually arrange HO-6 coverage during underwriting and closing preparation. The insurance agent may need the unit address, occupancy, interior replacement estimate, master-policy boundary, association deductible, lender mortgagee clause, and effective date.
The lender may accept an Insurance Binder or declarations page for evidence before closing, then require the final policy according to its process. If the premium is escrowed, the closing figures and later mortgage payment include the expected insurance cost.
HO-6 remains relevant after closing. Renovations can increase the value of improvements, master policies and deductibles can change at renewal, and the owner should update coverage rather than assuming the original amount remains sufficient.
| Coverage area | Typical purpose | Mortgage relevance |
|---|---|---|
| Building property | Interior fixtures, finishes, alterations, or improvements insured by the owner | Can fill a master-policy gap or relevant deductible exposure |
| Personal property | Furniture, clothing, and other owner belongings | Primarily protects the borrower rather than the lender’s real-estate collateral |
| Loss of use | Additional living costs after a covered loss | Helps the household during repair or displacement |
| Personal liability | Certain claims for injury or property damage | Personal risk protection |
| Loss assessment | Certain covered assessments imposed by the association | May help with specified shared-loss exposure, subject to policy limits |
The categories are not guarantees of coverage. Exclusions, special limits, deductibles, valuation methods, and endorsements determine whether and how a claim is paid.
The unit’s market value or full purchase price is not automatically the right HO-6 building-property limit. The owner is insuring the portion of the physical unit for which the owner is responsible, not buying insurance for land or for project property already covered by the association.
The insurance agent can use the governing documents, master-policy boundary, unit features, upgrades, and lender requirements to estimate an appropriate amount. The lender may impose a minimum tied to the cost to repair the unit or a relevant per-unit deductible.
A buyer’s condo association has a master policy that excludes interior cabinetry, flooring, fixtures, and owner improvements. The unit also contains an upgraded kitchen installed by the seller.
The buyer’s insurer estimates the cost to restore the covered interior and issues an HO-6 policy effective on the closing date. The declarations page names the buyer, shows the building-property limit and deductible, and includes the lender’s mortgagee clause. The policy also contains personal-property and liability coverage that protect the owner rather than the mortgage collateral directly.
HO-6 policy differs from Condo Insurance because condo insurance describes the broader master-policy-plus-owner-policy structure. HO-6 is the unit owner’s contract.
It differs from Condo Master Policy because the master policy belongs to the association, while the HO-6 policy belongs to the unit owner.
It differs from Walls-In Coverage because walls-in is shorthand for an interior coverage boundary, while HO-6 is an actual policy form that can contain several types of coverage.
It differs from Loss Assessment Coverage because loss assessment is one possible HO-6 coverage component, not the entire policy.
It also differs from Condo Questionnaire. The questionnaire gathers project information; the HO-6 policy insures the unit owner.