HO-6 insurance: How much condo insurance do I need?

by Guest » Tue Jun 12, 2007 03:40 am

Many individuals think that since the association owners have purchased insurance on the association they don't need insurance to protect their home. While it is true that the association owner will cover if your condo roof flies off, it will, however, not cover damage to any item inside your condominium. So, you need to get a separate coverage for your own safety.

What does HO-6 insurance cover?

A typical condominium insurance covers damage to your condominium, your belongings from perils like lightning, explosion, hail, windstorm, fire, civil disturbance, vandalism, theft, damage from falling objects, aircrafts or other vehicles and smoke.

How much condo insurance do you need?

To be able to determine how much condo insurance you need you must make a checklist of things you have to insure. You can begin by reading the master policy for the association. By reading the master policy you can find out what it covers and how much your condominium will be protected in case of any damage.

You can make a list of the things you would be responsible for like the flooring of your condo or the wall coverings, the plumbing fixtures, cabinets, any built-in appliances, lighting fixtures and any improvements made to your condo. Take some time out to add everything up to get an idea of home much condominium insurance you need.

Making a list of the personal property that you own would be a good idea to assess properly the amount of insurance you need to buy. Ask your agent for a content replacement option and how much it would cost you. Set your personal liability at a high limit to get a good amount of coverage. You could do the same for 'Loss Assessment' to cover you for big losses.

What you need to know before buying condominium insurance?

Master policy: Go through your master policy for the condominium to find out how much you are covered under that policy. Based on that you could assess what you need to cover to protect your condominium and your possessions from any damage due to a peril.

Deductibles: There is usually an association deductible in condominium insurance. So in case of a disaster be prepared to pay the deductible that will be divided amongst the unit owners.

Coverage required: Determine what you need to cover in your condominium and based on that draw up an assessment of the amount you need to invest in insuring your property.

Cash value or replacement cost: Find out which one you are opting for. A cash value will give you only the current value of an item minus the depreciation costs while a replacement cost would offer the total cost of replacing the item.

Interior structure and contents: Your association will not cover your personal property and the contents inside your condominium. You need to purchase coverage for the structure of your home and the contents inside your condo separately.

Flood and wind coverage: Make sure you buy flood if you live in a flood prone zone. Wind coverage is generally included in a typical policy.

Related reading:

I have a question about ho-6 insurance. I need to purchase an ho 6 insurance policy which will, among other things, cover replacement cost for internal real property (drywall, wall coverings, carpet, window treatments, etc.). What's the rule of thumb on how much coverage to get for internal real property? The purchase price of my condo was $115k.

Total Comments: 195

Posted: Tue Jun 12, 2007 03:02 pm Post Subject: How much condo insurance do I need?


First of all, read a copy of your associations policy. Find out what the master policy covers and what it doesn't.

Next, Make a list of what you may be structurally responsible for, for example: Any kind of flooring(hardwood,ceramic, and/or carpet), Wall coverings, Cabinets, Built-in appliances, plumbing fixtures, Lighting fixtures, and any improvements that have been attached and/or built on. This would go under your coverage "A." Most policy start out at 1,000, as you can see it can exceed over 100,000 easy. Take ten Minutes to add everything up, it will give you an idea.

Also, Make a list of your personal property, this would go under coverage "C." I would make sure you have a contents replacement cost option.

Have your personal Liability at a high limit, like 300,000-500,000 this is very inexpensive for a good amount of coverage. This would be Coverage "E."

Make sure you have high limits on "Loss Assessment," most commonly there are inadequate limits on this coverage. I would suggest having 50,000, also a very inexpensive option.

LOSS ASSESSMENT HELPS WHEN - Big Losses occur---> Associations limits gets exhausted----> Remaining damages divided up between condo owners.
Then go over any additional coverages you may need, for example: water backup, scheduled property, Earthquake, ID Theft, and many more.

I Hope this helps you in purchasing an ho 6 insurance , GOOD LUCK!



Posted: Tue Jun 12, 2007 08:39 pm Post Subject: HO 6 insurance for condo: $15k-$20k should be sufficient

On a $115k Condo, you would probably be alright with $15k-$20k worth of condo insurance. You can figure your personal property limit fairly easily by adding up your personal belongings. There are no "Rules of Thumb" for ho-6 insurance but I think if you come in somewhere in that range you should be fine.

Posted: Thu Jun 14, 2007 03:56 am Post Subject: ho 6 insurance policy..lets try it !

My Friend,

There are no basic thumb-rules designed to determine the volume of ho6 insurance one may need but yes, the purpose of such rules may be summerized as follows:

# Find and rule the the causes of fines and foreclosures
# Sge-restricted condominiums should be set up abiding by the discrimination laws.
# You should also know how to draft documents (both the general developments docs as well as those pertaining to the homeowner's associations).
# Gain expertise towards settling issues referring to the clashes between govt. rules and association rules.
# Gain expertise to solve the liability disputes.
# The client-related issues arising out of construction defect litigation and false claims should be confined to you.

Regards, Evan T. Smith

Posted: Tue Jun 30, 2009 09:48 am Post Subject:

Hi Guest, the ho-6 insurance can be divided into two parts. One part would cover the dwelling and the other would protect your personal belonging. At times the condo master’s policy would provide all in coverage, i.e. it would also cover your condo unit. However, the dwelling coverage generally covers the interior of the unit from,

* Fire & storm
* Accidental water damages (except flood; you need * separate policy for that)
* Damages caused by freezing of water pipes
* Theft and vandalism
* Explosion, and the like

For your personal belongings, you may add up the costs of each item and purchase coverage upto that level.

Posted: Tue Feb 09, 2010 07:18 pm Post Subject: florida HO6 policies

Is glass a mandatory coverage for Florida HO6 policies. What is the form number?

Posted: Wed Mar 03, 2010 09:10 am Post Subject: black mold

i currently own a condo where black mold was discovered. it is not know yet if it came up from the unit below. what is my 1st step? is black mold covered thru the master policy or my h06?

Posted: Thu Apr 15, 2010 05:41 pm Post Subject: Mandatory or not ?

Is it mandatory to have this insurance on a Florida Condo. If it is not can you plese direct me to written documentation saying that it is not mandatory. Thank you !

Posted: Wed May 26, 2010 01:37 am Post Subject: ho6

The purchase price of my condo is with new air conditioner I am installing$60,000. The outside of the building is not my responsibility. How much coverage do I need.

Posted: Wed Jul 21, 2010 07:39 pm Post Subject: allstate condo insurance

I am looking for a NJ HO-6 policy that covers sewer and drain backup damage in my Condo.. My preset policy carrier is AllState and they preclude sewer and drain backups. My Condo Association as a $5000 detuctible on their insurance, which leaves me vunerable up to their $5000 detuctible.

Posted: Fri Jul 30, 2010 02:18 pm Post Subject: ho6

does this also cover central air conditioner? :D

Add your comment

Enter the characters shown in the image.