What Is Condo Insurance (HO-6)?

Owning a condo comes with a coverage puzzle that catches many new owners off guard: your condo association has insurance, but it doesn’t protect everything you might assume. The gap between what the association’s master policy covers and what you’re responsible for can leave you facing thousands of dollars in uncovered losses. Condo insurance, known as an HO-6 policy, fills that gap, and understanding how the two policies work together is essential to being properly protected.

This guide explains what condo insurance (HO-6) is, what it covers, how it works alongside your association’s master policy, the three master-policy types that determine your coverage needs, loss assessment coverage, and the exclusions. Understanding this helps condo owners avoid dangerous coverage gaps.

What Condo Insurance Is

Condo insurance, technically an HO-6 policy, is coverage designed for owners of individual condominium units. It protects your unit’s interior, your personal belongings, and your liability, the things your condo association’s master policy doesn’t cover. It’s the condo equivalent of homeowners insurance, but tailored to the unique ownership structure of a condo.

The defining feature of condo ownership is that you own your individual unit while sharing ownership of the building and common areas with other owners through the association. This split is why condo insurance exists: the association insures the shared structure, and your HO-6 policy insures what’s yours. Lenders and associations typically require an HO-6 policy. Our guide to condo vs. renters vs. homeowners insurance compares these policy types.

What It Covers

An HO-6 policy includes several coverages, mirroring much of a homeowners policy but focused on your unit. The table below summarizes them.

It also typically includes medical payments to others for minor guest injuries. Use our home insurance calculator to estimate your coverage needs.

The Dwelling Coverage: “Walls-In”

The biggest difference between an HO-6 and a standard homeowners (HO-3) policy is the dwelling coverage. An HO-6 covers only the interior structure of your unit, often described as “walls-in” coverage. This typically includes the things you’re responsible for inside your unit: interior walls, drywall, flooring, cabinetry, fixtures, and built-ins.

If a covered peril like a burst pipe or fire damages your unit’s interior, the dwelling portion of your HO-6 pays to repair those interior elements. The building’s exterior, roof, and structural shell are generally the association’s responsibility, not yours. This walls-in focus is what makes condo insurance distinct, and getting the dwelling limit right depends on understanding your association’s master policy. Our guide to actual cash value vs. replacement cost applies to how your interior and belongings are valued.

How It Works With the Master Policy

Condo insurance doesn’t work alone, it works alongside your condo association’s master policy, and understanding the division is critical. The master policy, funded through your HOA fees, generally covers the building’s common areas and shared structures: lobbies, elevators, stairwells, roofs, exterior walls, pools, and parking areas.

Your HO-6 policy picks up where the master policy stops, covering your unit’s interior, your belongings, and your liability. The danger is the gap between them: if you misunderstand where the master policy’s responsibility ends, you could be underinsured. That’s why the first step in setting up condo insurance is always to get a copy of your association’s master policy declarations and understand exactly what it covers. The master policy directly determines how much HO-6 dwelling coverage you need.

The Three Master Policy Types

Master policies come in three types, and which one your association has dramatically affects how much condo insurance you need. Understanding yours is essential to setting the right dwelling coverage.

“Bare walls” (or studs-in) coverage is the most limited; the master policy covers the structure only to the bare studs, meaning you must insure all interior finishes, drywall, flooring, fixtures, and built-ins, requiring more HO-6 dwelling coverage. “Single entity” coverage includes the original built-in fixtures and finishes as installed, so you mainly insure your upgrades and belongings. “All-in” (or all-inclusive) coverage is the most comprehensive, covering original fixtures and finishes throughout, so you primarily need to insure your personal property and any improvements you’ve made. Knowing your type tells you how much dwelling coverage to carry.

Loss Assessment Coverage

A coverage unique to condo and co-op ownership is loss assessment. When a covered loss to a shared area exceeds the master policy’s limits, or the association faces a major covered expense, the association can levy a special assessment on all unit owners to cover the shortfall. Loss assessment coverage pays your share of such an assessment.

For example, if a fire damages the building lobby and the cost exceeds what the association’s policy and reserves cover, each owner might be assessed for the difference, and this coverage helps pay your portion. HO-6 policies often include a base amount of loss assessment coverage (sometimes around $1,000), but you can usually purchase higher limits. Given how costly a large assessment can be, increasing this coverage is often worthwhile, and inexpensive.

What It Doesn’t Cover

Like other home policies, HO-6 condo insurance has exclusions. It does not cover floods or earthquakes, which require separate policies or endorsements, nor damage from pests, insects, or animals, or normal wear and tear and maintenance issues. These are standard exclusions across property insurance.

It also doesn’t cover the shared areas and structures that are the association’s responsibility under the master policy, that’s the whole point of the division. And as with renters insurance, high-value items like jewelry may be subject to sub-limits, requiring a scheduled endorsement for full protection. Understanding these gaps, alongside the master policy division, helps condo owners assemble complete coverage with no surprises. Our guide to insurance exclusions covers similar gaps.

Frequently Asked Questions

What is condo insurance (HO-6)?

Condo insurance, or an HO-6 policy, is coverage for individual condo unit owners. It protects your unit’s interior (“walls-in”), your personal belongings, and your liability, the things your condo association’s master policy doesn’t cover. It also includes loss of use and loss assessment coverage.

What does HO-6 condo insurance cover?

It covers your unit’s interior structure (walls, flooring, fixtures), personal property, personal liability, loss of use if your unit becomes uninhabitable, and loss assessment for your share of certain association assessments. It typically includes medical payments to others as well.

What is “walls-in” coverage?

Walls-in coverage is the dwelling portion of an HO-6 policy, covering the interior structure of your unit you’re responsible for: interior walls, drywall, flooring, cabinetry, fixtures, and built-ins. The building’s exterior, roof, and shell are generally the association’s responsibility.

How does condo insurance work with the master policy?

The association’s master policy (funded by HOA fees) covers shared structures and common areas like lobbies, roofs, and pools. Your HO-6 picks up where it stops, covering your unit’s interior, belongings, and liability. Understanding the division prevents coverage gaps.

What are the three types of master policies?

“Bare walls” covers the structure only to the studs, so you insure all interior finishes. “Single entity” includes original built-in fixtures, so you insure upgrades and belongings. “All-in” covers original fixtures and finishes, so you mainly insure personal property. Your type sets your dwelling coverage needs.

What is loss assessment coverage?

Loss assessment coverage pays your share when the condo association levies a special assessment on unit owners after a covered loss to shared areas exceeds the master policy’s limits. HO-6 policies often include a base amount (sometimes around $1,000), with higher limits available.

How much condo insurance do I need?

It depends heavily on your association’s master policy type. Get a copy of the master policy declarations to see what it covers, then set your dwelling coverage to insure what you’re responsible for, plus enough personal property and liability coverage for your belongings and assets.

What does HO-6 insurance not cover?

It excludes floods, earthquakes, pests and animals, and normal wear and tear, which require separate coverage or aren’t insurable. It also doesn’t cover shared areas (the association’s responsibility), and high-value items may have sub-limits requiring a scheduled endorsement.

The Bottom Line

Condo insurance, an HO-6 policy, protects what your condo association’s master policy doesn’t: your unit’s interior, your belongings, your liability, and more. Its distinctive feature is “walls-in” dwelling coverage, protecting the interior structure you’re responsible for, while the master policy handles the building’s exterior, roof, and shared common areas.

The key to getting condo insurance right is understanding how it works with the master policy, especially which of the three master policy types your association has. Bare walls, single entity, and all-in coverage each leave you responsible for different amounts of the interior, directly determining how much HO-6 dwelling coverage you need. Always start by reviewing your master policy declarations.

Don’t overlook loss assessment coverage, which protects your share when the association assesses owners after a major covered loss, often worth increasing beyond the base amount. And remember the standard exclusions like flood and earthquake. By understanding the division of responsibility and setting your coverage accordingly, condo owners can close the gaps that catch so many off guard and protect their unit fully.

Ready to protect your condo the right way? Visit Matrix Insurance to explore your options. Use our home insurance calculator to estimate your needs, or contact our team for personalized guidance on condo (HO-6) insurance.