2026-03-31 · personal, property
Condo Insurance
Key takeaways
- Condo insurance (HO-6 policy) covers your unit’s interior, personal belongings, and liability, but not the building’s exterior or shared spaces.
- Your condo association’s master policy covers the building structure and common areas, but the gap between what it covers and what you need is where your HO-6 policy comes in.
- Understanding your association’s master policy type (bare walls, single entity, or all-in) determines how much dwelling coverage you need.
- Condo insurance is generally cheaper than homeowners insurance because you are not insuring the entire structure.
Who this is for
- Condo owners who need to understand what their association’s master policy does and does not cover.
- First-time condo buyers figuring out how much coverage to carry.
- Current condo owners reviewing whether their policy matches their actual exposure.
What condo insurance covers
An HO-6 condo policy typically includes:
- Dwelling (interior): walls, floors, ceilings, cabinets, fixtures, and upgrades inside your unit. This is sometimes called “walls-in” coverage.
- Personal property: furniture, electronics, clothing, and other belongings. Choose between replacement cost and actual cash value.
- Liability: legal and medical costs if someone is injured in your unit or you cause damage to another unit.
- Loss of use: temporary housing costs if your unit is uninhabitable after a covered loss.
- Loss assessment: covers your share of a special assessment from the condo association after a covered loss that exceeds the master policy’s limits.
How it differs from homeowners insurance
| Feature | Condo (HO-6) | Homeowners (HO-3) |
|---|---|---|
| Building exterior | Not covered (master policy) | Covered |
| Unit interior | Covered | Covered |
| Land and landscaping | Not applicable | Covered |
| Personal property | Covered | Covered |
| Liability | Covered | Covered |
| Loss assessment | Covered (with limits) | Not typically included |
| Typical cost | Lower | Higher |
For a broader comparison of property coverage types, see our homeowners vs. renters explainer.
Understanding your master policy
Your condo association carries a master insurance policy on the building. The type of master policy directly affects how much dwelling coverage you need in your HO-6:
- Bare walls-in: The master policy covers only the building’s structure (exterior walls, roof, common areas). You are responsible for everything inside your unit: drywall, flooring, cabinets, plumbing fixtures, appliances, and any upgrades. This requires the most dwelling coverage on your HO-6.
- Single entity: The master policy covers the building structure plus the original fixtures and finishes installed when the unit was built. You cover upgrades, renovations, and personal property.
- All-in (all-inclusive): The master policy covers the structure and all fixtures, including improvements. You primarily need coverage for personal property, liability, and any upgrades beyond what the master policy covers.
Action step: Request a copy of your association’s master policy or its certificate of insurance. Look for the coverage type and the deductible amount, since you may be responsible for paying the association’s deductible if a claim originates in your unit.
Common exclusions
Like other property policies, condo insurance typically excludes:
- Floods: Requires a separate flood insurance policy.
- Earthquakes: Requires a separate earthquake policy or endorsement.
- Wear and tear: Maintenance issues like gradual leaks or aging appliances.
- Pest damage: Termites, rodents, and other infestations.
- Association common areas: Hallways, lobbies, pools, and the building exterior are covered by the master policy, not your HO-6.
Cost factors
Condo insurance premiums depend on:
- Unit location and floor: ground-floor units may face higher water damage risk; upper floors face more wind exposure.
- Dwelling coverage amount: more interior upgrades mean higher rebuilding costs.
- Deductible level: higher deductibles lower premiums.
- Claims history: both yours and the building’s history matter.
- Master policy deductible: a high association deductible increases your exposure and may require more loss assessment coverage.
- Building age and construction: older buildings or those with outdated wiring and plumbing can cost more to insure.
How to choose the right coverage
- Read your master policy. Identify whether it is bare walls, single entity, or all-in. This determines your dwelling coverage starting point.
- Estimate your interior rebuild cost. Include cabinets, countertops, flooring, fixtures, and any renovations. For bare-walls policies, this is a substantial number.
- Inventory your personal property. Walk through your unit and total up replacement costs for everything you own.
- Set liability limits. Start at $100,000 minimum and increase if your assets and income warrant it. Consider an umbrella policy for additional protection.
- Check loss assessment limits. Standard policies include $1,000 to $2,000 in loss assessment coverage. If your association has a high master deductible or limited reserves, increase this limit.
- Add endorsements as needed. Water backup, scheduled personal property for valuables, and identity theft coverage are common add-ons.
Frequently asked questions
Is condo insurance required? Your mortgage lender will require it if you have a loan. Even without a mortgage, your condo association may require a minimum HO-6 policy. It is worth carrying regardless because the master policy does not cover your personal belongings or interior.
What is a loss assessment? If the association’s master policy does not fully cover a building-wide loss (like major storm damage), the association can levy a special assessment on all unit owners. Loss assessment coverage on your HO-6 helps pay your share.
Does my policy cover water damage from a neighbor’s unit? Generally yes, if the damage is sudden and accidental (like a burst pipe). Gradual leaks or maintenance failures are typically excluded. Your insurer may seek reimbursement from the neighbor’s policy through subrogation.
How much dwelling coverage do I need? It depends on your master policy type and your unit’s interior. For bare-walls coverage, estimate the full cost to rebuild the interior from studs out. For all-in master policies, you may only need enough to cover upgrades beyond original finishes.
Next steps
- Request a copy of your condo association’s master policy and identify the coverage type and deductible.
- Estimate your interior rebuild cost and total personal property value.
- Get quotes from at least three insurers with matching limits for a fair comparison. Use our quote comparison guide to structure the process.
- Review your policy annually or after any renovations that change your unit’s value.