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: Fri Jun 27, 2014 02:49 pm Post Subject: Ho6

Do you have to put your loan number and mortgage company on your policy

Posted: Fri Jun 27, 2014 03:53 pm Post Subject:

You are bound by the terms of your mortgage loan contract. Since no one here has seen that contract, we cannot give you a definite answer.

However, all of the first mortgage loan contracts I have ever seen require the maintenance of fire insurance to cover the dwelling in favor of the lender. As such, the lender must be named as an additional insured/loss payee. The loan number is incidental, and not necessarily a requirement, because the lender has many ways of proving its legal position.

If your mortgage contract has this provision, and you fail to provide proof that you have named the lender as an additional insured/loss payee as required in a contract of insurance on the property, the lender may force-place coverage to protect its interest in the property at your expense. That language is also in your mortgage loan contract.

What is your objection to doing these two things?

Posted: Thu Jan 22, 2015 03:29 pm Post Subject:

When purchasing an HO-6 policy for a condominium unit it is very important that you first know what is your responsibility and what is the condo associations responsibility in the event of a loss. You should refer to both your association documents as well as the statutes in your particular state as they may apply as well.
As an adjuster that has handled numerous condo claims I can tell you that you will most likely need more than you think. In Florida, as the unit owner you are responsible for basically everything past the drywall as the drywall is the associations responsibility. That being said, you need to think about how much it could cost you to replace the following: texture on walls and ceilings, paint on walls and ceilings, baseboard, crown molding, floor covering, entire kitchen demo and rebuild, entire bathroom(s) demo and rebuild.
It can add up very fast.
When it comes to personal property coverage that is based on what you have, as the owner you will know best as to how much it will cost you to replace everything.
Also, do not forget about the much need ALE coverage that will come into play if you home is not liveable during repairs and you need to find another place to live.

Posted: Mon Feb 02, 2015 11:52 am Post Subject: quote price

need for the tenants only, such accident by fall

Posted: Tue Feb 13, 2018 08:26 pm Post Subject: new assessement asap

MY HOA s assessing each unit owner in condo complex $2000. asap to cover roof repairs on all condo building in complex due to storms in here in Florida in last 6 months. I have H06 policy on my condo. Will my policy cover this and without a deductable?

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