Two Policies for Two Kinds of Ownership
If you’re moving from a traditional house into a condo, or you’re a condo owner who’s never really dug into your policy, it’s worth understanding how condo insurance differs from standard homeowners insurance. They protect different things, and mixing them up can leave real gaps in your coverage.
The Standard Homeowners Policy (HO-3)
Most single-family homeowners carry what’s known as an HO-3 policy. This type of policy covers the entire structure of your home, from the foundation to the roof, along with your personal belongings and your liability if someone is injured on your property. Since you own the whole structure outright, your policy has to account for all of it, from the framing and roofing down to the paint on the walls.
The Condo Policy (HO-6)
Condo owners typically carry an HO-6 policy instead, and it works quite differently. When you own a condo, you don’t own the entire building. You own your individual unit, and the condo association (through its own master policy) generally covers the shared structure, common areas, and the building’s exterior.
Your HO-6 policy is designed to fill in the gaps the association’s master policy doesn’t cover, which usually means the interior of your unit and your personal responsibility as a unit owner.
What the Association’s Master Policy Typically Covers
Master policies vary by association, but they generally cover the building’s structure, roof, exterior walls, and shared common areas like hallways, elevators, parking structures, and amenities like a pool or clubhouse. Some master policies are written on what’s called a “bare walls” basis, covering only the structural shell, while others cover more of the interior, including original fixtures. This distinction matters a lot, because it determines exactly where your HO-6 policy needs to pick up.
What You’re Responsible for as the Unit Owner
Generally speaking, your HO-6 policy needs to cover:
Interior finishes. Depending on your association’s master policy, you may need coverage for things like flooring, cabinets, countertops, and any upgrades or improvements you’ve made inside your unit.
Personal property. Your furniture, electronics, clothing, and other belongings aren’t covered by the association’s policy at all. That’s entirely on your individual policy.
Liability coverage. If someone is injured inside your unit, your HO-6 policy typically provides liability protection, similar to how a homeowners policy would for a house.
Loss assessment coverage. This is a piece that’s easy to overlook. If the condo association faces a large loss that exceeds what the master policy covers, or if the association is found liable for something and the cost gets divided among unit owners, you could be assessed a share of that cost. Loss assessment coverage on your HO-6 policy can help protect you from having to pay that out of pocket.
Why It’s Worth Reviewing Both Policies Together
The tricky part of condo ownership is that your coverage really depends on two documents working together: the association’s master policy and your own HO-6 policy. If you’ve never actually read the master policy’s coverage summary, it’s worth requesting it from your association so you and your agent can see exactly where the gaps are and make sure your personal policy fills them appropriately.
Two Policies, One Conversation
Whether you’re buying your first condo in the Edmond area or just want a second look at your current coverage, Rondon Insurance Services can review your association’s master policy alongside your own and compare quotes across our carriers to build the right HO-6 policy for you. Reach out any time — we’re happy to help.
