Condo insurance, called an HO-6 policy, covers the inside of your unit and your personal liability. It works with your condominium association’s master policy, not instead of it. Here is what an HO-6 covers, what it does not, and how coverage splits between you and your homeowners association (HOA).
What condo insurance covers
An HO-6 condo insurance policy has a few main parts:
- Dwelling (Coverage A): the parts of your unit you own, like interior walls, floors, cabinets, and upgrades. Set this to the replacement cost of your unit’s interior.
- Personal property (Coverage C): your belongings, such as furniture, electronics, and clothing. Choose replacement cost over actual cash value so you are paid to buy new.
- Personal liability (Coverage E): helps if you are found responsible for someone’s injury or property damage. Many owners carry at least $300,000.
- Medical payments (Coverage F): small, no-fault coverage for a guest’s minor injury.
- Loss of use (ALE): pays added costs like a hotel if your unit is unlivable after a covered loss.
- Loss assessment: pays your share of an HOA special assessment after a covered loss to shared property. It is cheap and useful in older Florida condo buildings.
What condo insurance does not cover
- Floods. HO-6 policies exclude flood damage, and much of Florida needs a separate policy through the National Flood Insurance Program.
- Wear and tear, poor maintenance, pests, and mold.
- Damage you cause on purpose.
- Business activity in the unit, which may need an endorsement.
What your HOA covers vs. your HO-6
The split depends on your master policy and governing documents. In Florida, Florida Statutes, Section 718.111 requires the association to insure the building at its replacement cost, set by an independent insurance appraisal. Use this table as a guide, then confirm with your HOA.
| Category | Typically the HOA | Typically your HO-6 |
|---|---|---|
| Building structure (roof, exterior walls) | Yes, as common areas | No |
| Hallways, lobbies, amenities | Yes | No |
| Your unit’s interior walls and fixtures | Varies (bare walls vs. all-in) | Often yes |
| Upgrades and remodels | Often no | Often yes |
| Personal belongings | No | Yes |
| Personal liability | No | Yes |
| Guest medical payments | No | Yes |
| Temporary living expenses | No | Yes (loss of use) |
| Water damage | Varies; sudden or accidental may be covered | Often yes if sudden or accidental |
| Loss assessment | Master policy may cover the building | Often yes, with loss assessment coverage |
Master policy types
- Bare walls: covers the building shell only. You cover interior walls, floors, and fixtures.
- Single entity: covers the building and original fixtures, not your upgrades.
- All-in: covers the building and all fixtures.
Which type your association carries sets how much dwelling coverage you need. Ask your board or property manager for the master policy declaration page to find out.
Is it required?
Not always by law, but your mortgage lender and your HOA often require it. Even when they do not, an HO-6 policy protects you from a large out-of-pocket loss. The Florida Department of Financial Services has a plain overview worth reading.
How much you need, and what it costs
Match dwelling coverage to your unit’s interior replacement cost, set personal property from a real inventory, and pick liability limits you are comfortable with. Condo insurance usually costs less than a homeowners policy, often a few hundred to over a thousand dollars a year. Compare quotes at the same coverage levels, and save by bundling, raising your deductible, and adding leak detectors or smoke alarms.
Where the master policy replacement cost comes in
For associations, all of this starts with the building’s replacement cost. It sets the master policy limit, and Florida law requires it to come from an independent insurance appraisal. Prestar is an insurance appraisal firm that has completed replacement cost appraisals for Florida condominium and homeowners associations for about twenty years. If your master policy limit has not been reviewed in a few years, an updated appraisal is the place to start.
Condo insurance FAQs
Does it cover water damage? Sudden, accidental water damage like a burst pipe is often covered. Long-term leaks usually are not, unless you add a water backup endorsement.
Does it cover theft? Yes, though jewelry, cameras, and bikes may have sub-limits. Schedule high-value items for full protection.
HO-6 vs. renters insurance? An HO-6 is for owners and covers your unit’s interior. Renters insurance does not.
