What is HO-6 insurance?

Definition and Examples of HO-6 Insurance

How Does HO-6 Insurance Work?

HO-6 Insurance vs. HOA Insurance

What Does HO-6 Insurance Cover?

Do I Need HO-6 Insurance?

Definition and Examples of HO-6 Insurance

HO-6 insurance is a specific type of homeowners insurance that covers losses and repairs for condominiums, cooperatives, and small homes. HO-6 insurance is also referred to as condominium insurance and is a type of homeowners policy that can cover a wide range of damages and expenses related to your condo or cooperative or home – rather than the common areas within the condo complex.

How Does HO-6 Insurance Work?

HO-6 insurance differs from your homeowners association (HOA) master insurance policy, which usually covers the common areas and the structure of the building itself, and sometimes the structural portion of your unit. An HO-6 policy will cover your personal property, any fixtures or improvements, and liability incidents that may occur in your unit or living expenses if you have to relocate during repairs.

HO-6 Insurance vs. HOA Insurance

Essentially, HO-6 insurance covers your unit from the walls in, while the HOA master policy covers the structure of the building and any common areas. While some HOA master insurance policies provide more comprehensive coverage, an HO-6 policy can help fill the gaps by ensuring coverage inside your unit and for your personal property as well.

What Does HO-6 Insurance Cover?

HO-6 insurance compensates for the lack of coverage from the HOA master policy for your personal property. It may cover any of the following:

• Property coverage for damages in your unit: You may get assistance in replacing your cabinets and appliances if they’re damaged in a covered incident.
• Personal property: Insurers may pay to repair or replace your electronics or clothing if they’re damaged or stolen.
• Liability claims against you (including any medical expenses): If your guest injures themselves on your property, your insurance may help cover legal fees and medical bills for the guest.
• Additional living expenses (and loss of use coverage): May cover costs of food and lodging if your unit is uninhabitable.

Do I Need HO-6 Insurance?

If you purchase a condo, your homeowners association or mortgage lender (if you’re using one) may require you to get an HO-6 insurance policy. They may also have minimum coverage requirements.

Even if you own your condo outright and clear, or if your HOA does not require you to have HO-6 insurance, you may want to consider getting a policy anyway.

Ultimately, your condo is likely one of the most valuable assets you own. And if it’s your primary residence, you’re likely keeping most (if not all) of your personal belongings at home. No matter how unlikely it seems, the potential downside of losing everything you own in an instant due to a disaster like an electrical fire is significant and shouldn’t be left to chance.

Furthermore, HO-6 insurance is relatively affordable. The national average annual premium for HO-6 is $506, or about $42 per month. It’s a very small cost to pay for peace of mind knowing that your home and belongings are protected.

Source: https://www.thebalancemoney.com/what-is-ho6-insurance-5201480