HO6 Insurance Explained
What is HO6 Insurance?
HO6 insurance, also known as condo insurance, is a type of homeowner’s insurance policy designed specifically for condominium units. Unlike traditional homeowners insurance (which covers the entire building), an HO6 policy covers the interior of your unit—everything from walls and flooring to personal belongings and liability.
In Massachusetts, most condo associations carry a master insurance policy that covers the exterior and common areas. Your HO6 policy fills in the gaps—ensuring you're protected where the master policy stops.
🔑 Key Components of HO6 Insurance
Understanding the parts of an HO6 policy can help you make informed decisions and ensure you’re fully protected. Here are the key components:
1. Interior Dwelling Coverage
This covers what’s inside your condo—such as cabinets, countertops, flooring, and interior walls. If a fire, burst pipe, or another covered incident damages your unit, this portion helps pay for repairs or replacement.
2. Personal Property Coverage
Covers your belongings like furniture, electronics, clothing, and more. If items are stolen or damaged due to a covered event, this part of your policy helps you recover the cost.
3. Loss of Use / Additional Living Expenses
If damage to your unit makes it temporarily unlivable, this coverage helps pay for alternative housing and living expenses while repairs are being made.
4. Liability Protection
If someone is injured inside your unit or you accidentally cause damage to another unit (think: overflowing bathtub), this coverage helps cover legal fees and damages.
5. Loss Assessment Coverage
This is especially relevant in Massachusetts condos. If your association issues a special assessment for damage to common areas not fully covered by the master policy, your HO6 policy can help cover your portion—often up to a set limit.
🏠 Why HO6 Insurance Matters
In Massachusetts, most lenders require an HO6 policy before approving a mortgage for a condo. But even beyond that, it’s a smart and necessary way to protect your home, your belongings, and your financial well-being.
Because master policies vary widely in what they cover, HO6 insurance ensures you’re not left with unexpected gaps. Whether you're in a small association in Arlington or a large development in Quincy, this coverage provides peace of mind and plays a vital role in making sure your transaction—and ownership—runs smoothly.
FAQ’s
What is HO6 insurance?
HO6 insurance is a condo insurance policy that covers the interior of your unit, your belongings, and personal liability. It complements your condo association’s master policy.
What does loss assessment coverage mean?
Loss assessment coverage helps pay your share of costs if your condo association charges unit owners for damage to shared areas not fully covered by the master policy.
Do I need HO6 insurance if my condo has a master policy?
Yes—the master policy usually only covers the building structure and shared areas, not the inside of your unit or your personal items.
How much coverage do I need?
The amount depends on the value of your interior finishes, personal property, and the specifics of your association’s master policy. A local insurance agent can help tailor the policy.
Is HO6 insurance required in Massachusetts?
Most lenders in Massachusetts require HO6 insurance before closing on a condo. Even if it’s not required, it’s highly recommended for protection.
Does HO6 insurance cover temporary housing if my condo is damaged?
Yes—most HO6 policies include loss of use coverage, which pays for alternate housing if your condo becomes uninhabitable due to a covered event.