Why condo owners need an HO-6 policy

Last week we posted a pretty lengthy article about insurance for condo owners entitled, “Condo insurance considerations.”

The piece delved into the differences between a Master Policy, which is what your condo association carries to protect the building and its common elements, and the Unit-Owner Policy otherwise known as an HO-6 policy. An HO-6 policy picks up where a Master Policy leaves off, protecting the inside of the unit as well as the owner’s personal belongings. Items like replacing cabinets, appliances and flooring are also covered by the Unit-Owner Policy.

Earlier this month, our friend Michele Lerner who has written about Federal Title on many occasions, published a piece with the Washington Times entitled, “Insurance a must-have for condo owners.” Her piece does an excellent job of expanding on the types of scenarios a condo owner might encounter where the HO-6 policy would come into play.  

“Condo owners need to understand that the master policy for the condo association often covers the buildings to reconstruct them as they were built originally and will not cover improvements, such as updated kitchens or hardwood flooring, that have been added to a home.”