What does condo insurance cover and why do you still need it if your HOA has a policy?

When you buy a condo, your homeowners association maintains a master insurance policy that covers the building's structure, roof, and common areas. It is easy to assume that policy protects you too. In most cases, it does not—at least not inside your unit. Condo owners who rely entirely on the HOA policy often discover the hard way that their flooring, cabinets, appliances, and personal belongings are their own financial responsibility. An HO-6 condo policy is designed specifically to fill that gap.

What the HOA master policy actually covers

HOA master policies generally come in two forms. A "bare walls" policy covers only the building's skeleton—framing, exterior walls, roof, and shared systems—stopping at the unfinished interior surfaces of your unit. A "walls in" or "all-in" policy goes further and includes original fixtures, flooring, and built-in appliances as they were when the unit was first built. Even the more generous walls-in version does not cover your personal belongings, upgrades you made after purchase, or your liability for injuries that occur inside your unit. Reviewing your HOA's master policy documents—specifically the declarations page and definitions section—is the only reliable way to know where their coverage ends.

What your HO-6 policy covers

A standard HO-6 policy picks up where the HOA master policy leaves off. It typically includes several distinct protections that condo owners need:

• Dwelling coverage: Pays to repair or replace interior structures—walls, floors, ceilings, cabinets, and fixtures—damaged by a covered peril. Especially important if your HOA carries a bare-walls policy.
• Personal property: Covers furniture, electronics, clothing, and other belongings against theft, fire, water damage, and other named perils.
• Liability coverage: Protects you if a guest is injured inside your unit or if you accidentally cause water damage to a neighbor's unit below you.
• Loss of use: Pays for temporary housing and added living expenses if a covered loss makes your unit uninhabitable.
• Loss assessment coverage: Reimburses your share of a special assessment charged by the HOA after a covered loss that exceeds the master policy's limits.

The loss assessment gap most condo owners overlook

Loss assessment coverage deserves special attention because it addresses a risk most condo owners never consider. If the HOA master policy is exhausted by a large claim—a major fire in the building, for example—the association can charge each unit owner a proportional share of the remaining cost. These assessments can reach tens of thousands of dollars. Standard HO-6 policies include some loss assessment coverage, but the default limit is often only $1,000 to $2,000. Increasing that limit through an endorsement is usually inexpensive and worth doing.

What Truscott recommends

Condo insurance coverage is only as strong as the coordination between your HO-6 policy and your HOA's master policy—and most condo owners have never compared the two side by side. A Truscott coverage review examines both documents together, identifies the exact point where the HOA policy stops covering you, and confirms your HO-6 limits are sized to close the gap. Contact us before your next renewal so you are not left funding repairs or assessments out of pocket.