HO6 Condo Insurance Policy
HO6 Condo Insurance or HO6 Townhome Insurance is a specific insurance policy created for the unique needs of Condo’s and Townhome’s throughout the United States.
The HO6 is a Named Perils Policy
The HO6 policy for your Condo or Townhome is a named perils insurance policy. This particular type of policy specifically lists all the perils that the policy will insure. This means that if an event that is not listed on the HO6 happens to destroy or damage your property, it will not insure what was damaged as a result of that individual event.
HO6 Insurance Policy Perils
The following 16 perils are what a standard HO6 insurance policy will insure:
- Fire or Lightning
- Windstorm or Hail
- Riot or Civil Commotion
- Vandalism or Malicious Mischief
- Volcanic Eruption
- Falling Objects
- Weight of Ice, Snow, or Sleet
- Accidental Discharge or Overflow of Water or Stream
- Sudden & Accidental Tearing Apart, Cracking, Burning, or Bulging
- Sudden & Accidental Damage from Artificially Generated Electrical Current
The HO6 and Dwelling Coverage
In order to have a complete understanding as to why dwelling coverage amounts differ between condo and home insurance policies, we first need to understand the differences between condos and homes. When a person owns a home, they are responsible not only for the upkeep of their home (the actual dwelling), but also for the grounds (front yard, back yard, etc.) as well as all the other buildings on the property (pools, fences, mailbox, etc.). With the exception of a fence (fences may be co-owned by neighbors), the detached single family home owner has all the responsibility for upkeep and repair.
Now let’s look at condo and townhome structures. When someone owns a condo, they are responsible for only the upkeep and repair of the portion of the condo complex they own. Although, a condo owner typically has full access to amenities (the pool, weight room, etc.), they don’t technically have full ownership of these areas. For example: Condo owner A wouldn’t be allowed to kick condo owner B out of the community pool because they want privacy.
Most condo owners only own the interior of the condo. The floors, walls, ceilings, and “studs-in” are all part of the condo owner’s responsibility. The roof, the community pool, the mailbox areas are all typically community owned, thus the community is responsible for upkeep and repair.
Now that the difference between condos and homes is understood, it will be a little easier to explain why the HO6 requires a small amount of dwelling coverage. The owner of a 1700 square foot home needs to have enough coverage to replace not only the interior of the home, but also the exterior walls, roof, central air, heating system, etc. The owner of a 1700 square foot condo, on the other hand, doesn’t have to insure the roof, the exterior walls, the central air, and the heating system. These are all covered by the community. Due to the responsibilities of the home owner vs. the HO6 condo insurance owner, it’s clear to see that the home owner will need much more insurance for the Dwelling than a typical condo or townhome owner will need.
The HO6 and Other Structures Coverage
The amount of Other Structures coverage in HO6 insurance is calculated similarly to Dwelling coverage. The main difference is that the condo owner will not typically have other structures that need coverage. If you think about it, it makes a lot of sense.
Is the condo owner responsible for fixing the community mailbox if it breaks?
Are they responsible for fixing the pool if it clogs?
Responsible for fixing the roof of the clubhouse or the roof of the building they share with 4 other owners?
The answer to all of these questions is no, the condo owners association is responsible for taking care of all of these situations. Due to the fact that most condo owners have no outbuildings which they own outright, they typically have no Other Structures coverage.
Is The HO6 Insurance Policy the Only Policy Available for Condo and
The HO6 has one limitation for condo and townhome owners and that is the fact that they don’t have any other options. Homeowners can pick between varying degrees of coverage, and many different types of insurance policies; the HO1, HO2, HO3, and so on. Condo owners don’t have the same luxury that homeowners have. If a condo owner doesn’t like the coverage the HO6 offers, they have very few other options. Despite this limitation, the HO6 is an excellent insurance policy, and is typically sufficient coverage for most condo owner’s needs.