Condo Insurance 101: What It Covers and Why You Still Need It

​Think your condo association’s insurance covers it all?

Think again. Learn what condo insurance covers and why it’s essential for every condo owner.

Understanding Condo Insurance (HO-6)Condominium insurance—also known as HO-6 insurance—is designed specifically for condo unit owners. Unlike traditional homeowners insurance, HO-6 policies focus only on what’s inside your walls. That’s because most condo associations already carry a master policy that covers the structure and shared areas of the building. But that doesn’t mean you’re off the hook.

Your personal belongings, interior features, and liability protection are still your responsibility—and that’s exactly where condo insurance steps in.

What Does Condo Insurance Cover?
Here’s a breakdown of what most HO-6 policies include:
🛋️ Personal Property
Covers your belongings such as furniture, electronics, clothing, and appliances if they’re damaged by a covered peril like fire, theft, or water damage from a burst pipe.
🏠 Interior Structures (Building Property)
If your condo association's master policy is “walls-out,” you’re responsible for everything inside your unit—like floors, walls, cabinets, and fixtures. Condo insurance helps protect these.

💡 Example: A kitchen fire damages your cabinets and flooring. Your condo insurance would help repair or replace these items.

👨‍👩‍👧‍👦 Liability Coverage
Protects you if someone gets injured inside your unit and decides to sue. It can also cover accidental damage you cause to another unit (e.g., a water leak into the neighbor’s condo below).
🛏️ Loss of Use / Additional Living Expenses
If your unit becomes uninhabitable due to a covered claim (like a fire), this helps pay for temporary housing and extra costs of living elsewhere.
🔑 Loss Assessment Coverage
Covers you if your condo association passes along a portion of a large claim or deductible to all unit owners. This is especially valuable in smaller associations or those with limited reserves.

What’s Typically Not Covered?

• Flood damage (you’d need a separate flood policy)
• Earthquakes (may be excluded unless added)
• Damage from wear and tear
• Issues covered under the condo association’s master policy

Master Policy Types and Why It Matters
There are generally two types of master policies your HOA might carry:

• Walls-In (All-Inclusive): Covers interior elements like cabinetry and fixtures.
• Walls-Out (Bare Walls): Covers only the exterior and common areas. You must insure all interior features.

✅ Tip: Always get a copy of your HOA’s master policy. Knowing what’s included will help you choose the right amount of condo insurance coverage.

How Much Condo Insurance Do You Need?
It depends on:

• The value of your belongings
• Whether your HOA has a walls-in or walls-out policy
• How much liability coverage you’re comfortable with (most experts recommend at least $300,000)
• The value of upgrades you’ve made to the unit (e.g., high-end appliances, custom flooring)

Carriers like Progressive, Safeco, and Allstate offer affordable HO-6 policies with customizable options and discounts for bundling with auto, installing safety devices, or being claims-free.

Real-World Example
A Fort Worth condo owner recently experienced a kitchen fire that damaged their cabinets and personal belongings. While their HOA’s master policy only covered structural repairs to the walls, their personal condo insurance covered:

• Cabinet and appliance replacement
• Temporary housing for 3 weeks
• The cost of damaged personal property

Without an HO-6 policy, they would’ve been out thousands of dollars.

Final Thoughts
​Even if your HOA has an extensive master policy, condo insurance is still a must. It’s the only way to protect your personal property, liability, and living expenses if something goes wrong inside your unit.

Disclaimer:Coverage varies by carrier and policy. Always review your condo association’s master policy and consult with a licensed insurance agent to ensure you’re fully protected.