Condo Insurance

Condo insurance, also called an HO6 policy, is an insurance policy designed specifically for condominium owners. It covers the interior of your unit; including walls, flooring, cabinets, and fixtures — along with your personal belongings and liability. Unlike your HOA’s master policy, which covers the building’s exterior and shared spaces, condo insurance protects everything inside your individual unit. Most mortgage lenders require an HO6 policy before approving a condo loan.

A standard condo insurance policy covers five main areas: dwelling coverage for your unit’s interior structures (walls, floors, countertops), personal property coverage for your belongings (furniture, electronics, clothing), liability protection if someone is injured in your unit, loss of use coverage for temporary living expenses if your condo becomes uninhabitable, and additional optional coverages like loss assessment, water backup, and identity theft protection. Exact coverage limits depend on your policy.

HOA insurance (the master policy) covers the building’s exterior, roof, shared hallways, elevators, pools, and other common areas. Condo insurance (your HO6 policy) covers everything inside your individual unit — your interior walls, flooring, personal belongings, and liability. Think of it this way: the HOA policy protects the building from the studs out, and your condo policy protects your unit from the studs in. You need both for full protection.

Yes. The personal property portion of your condo insurance policy covers your belongings — including furniture, electronics, appliances, clothing, and kitchenware — if they’re damaged or stolen. Standard policies cover belongings at actual cash value (factoring in depreciation), but you can upgrade to replacement cost coverage, which pays to replace items at today’s prices. If you own high-value items like jewelry or art, you may want to add a scheduled personal property endorsement for full coverage. 

Yes. Condo insurance includes personal liability coverage, which protects you if someone is injured in your unit or if you accidentally damage someone else’s property. Your policy pays for their medical expenses and your legal defense costs up to your coverage limit. Standard policies typically include $100,000 in liability coverage, but you can increase this or add an umbrella policy for additional protection.

HO6 stands for Homeowners Policy Form 6, which is the insurance industry’s standard designation for condo owner insurance. For reference, HO3 is the standard homeowners policy for single-family homes, and HO4 is the renters insurance policy. The “HO” stands for homeowners, and the number indicates the specific policy type. When shopping for condo insurance, asking for an “HO6 policy” ensures you get the right coverage.

Condo insurance typically does not cover flood damage, earthquake damage, normal wear and tear, power failure from off-premises sources, or intentional damage. Damage to the building’s exterior, roof, and common areas is also excluded — that falls under your HOA’s master policy. If you live in a flood-prone area, you’ll need a separate flood insurance policy. Sewer and water backup coverage is also usually excluded from standard policies but can be added as an endorsement.

You need HO6 insurance because your HOA’s master policy only covers the building’s structure and shared common areas — not your unit’s interior, personal belongings, or personal liability. Without an HO6 policy, you’d pay out of pocket to repair damage to your walls, flooring, and fixtures, replace stolen or damaged belongings, and cover legal costs if someone is injured in your unit. Most mortgage lenders also require an HO6 policy as a condition of your condo loan.

Indiana does not legally require condo insurance, but your mortgage lender will almost certainly require an HO6 policy if you’re financing your condo. Many HOAs also require unit owners to carry a minimum level of coverage. Even without a legal or lender requirement, carrying condo insurance is strongly recommended — without it, a kitchen fire, burst pipe, or liability claim could cost you thousands of dollars out of pocket.

Loss assessment coverage protects you when your HOA charges unit owners to cover a shared expense that exceeds the master policy’s limits. For example, if a major storm damages the building’s roof and the repair cost exceeds the HOA’s insurance, each unit owner may be assessed a portion of the remaining balance. Loss assessment coverage on your HO6 policy pays your share of that assessment, up to your coverage limit — typically $1,000 to $50,000 depending on your policy.