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J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
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10+ years writing and editing insurance content
Published in Washington Post, LA Times, and more
Nick leads Compare.com's editorial team in creating helpful, easy-to-understand content about insurance and personal finance.
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
A licensed P&C agent in Missouri, MacK leverages his insurance expertise to fact-check and review Compare.com content.
Updated
Condo hazard insurance is home insurance for condo owners. Insurers sometimes call this an HO-6 policy or condo insurance. Unlike your condo association’s master policy, which covers the outside of the structure and common areas, condo hazard insurance protects the interior of your unit and personal belongings against 16 named perils.[1] It offers coverage, plus liability protection.
Below, we break down what you need to know about how a condo hazard insurance policy works, what it covers, what it excludes, and what optional coverages you should consider depending on your situation. We’ll also share tips on how to get cheaper coverage.
Condo hazard insurance is a type of homeowners insurance that protects you from named perils like smoke, fire, and theft.
HO-6 policies cover the condo unit’s interior, offer liability protection, and loss of use coverage if you need temporary accommodations after a covered event.
Mortgage lenders almost always require condo owners to carry condo hazard coverage, and many condo associations and HOAs have minimum coverage requirements.
Condo hazard insurance is a type of home insurance designed for condos, also known as an HO-6 policy or condo insurance. Most condo associations and HOAs require condo owners to carry a policy. And if you mortgage your condo, your lender will likely require it, too.
Condo hazard insurance generally protects your unit’s interior and personal belongings against perils not covered by the condo association’s master insurance policy. Most policies also include personal liability coverage and loss of use coverage to help pay for temporary accommodations and costs if damage forces you out of your condo temporarily.
HO-6 policies work a bit differently from homeowners insurance policies because they only cover the interior of your unit, not the building structure or common areas. And unlike renters insurance, it covers structures within the unit, like cabinetry and appliances.
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Your homeowners association, or HOA, also carries an insurance policy called an HOA master policy to cover the entire building structure and shared spaces. And condo hazard insurance picks up where the master policy leaves off to protect your investment.[2]
Generally speaking, a master policy won’t cover the interior of your condo unit, which could leave you on the hook financially for damage. For example, the master policy covers windstorm damage to the roof from a windstorm, but doesn’t help pay for repairs needed in your unit or replacing your personal belongings. Condo hazard insurance helps fill this gap.
Condo hazard insurance generally provides “walls-in” coverage, which begins at your unit’s walls, floors, and ceiling. The coverage you need depends on what the master policy covers.
Some condo associations and HOAs cover the interior of your unit as originally built, including permanent fixtures. But others only cover the condo’s walls, floors, and ceilings. Checking the association’s bylaws closely can help you get a clearer understanding of the type of condo hazard insurance you need.
The table below highlights what condo hazard insurance and a master condo policy typically cover.
Coverage Area | Condo Hazard Insurance (HO-6) | Master Condo Policy |
|---|---|---|
| Who the policy covers | Named policyholder | Condo association or HOA |
| Dwelling/structure | Interior walls, flooring, permanent fixtures (sometimes), and renovations to unit | Building exterior and roof; common areas like stairs, elevators, lobbies, and gyms; major systems like HVAC |
| Personal property | Your furniture, electronics, clothing, and other belongings | Not covered |
| Liability protection | Medical expenses and legal fees if a guest sustains an injury in your unit or you cause property damage | Injuries occurring in common areas |
| Additional living expenses | Temporary housing, meals, and other temporary costs if your unit becomes uninhabitable due to a covered loss | Typically not covered |
| Loss assessment coverage | Your share of special assessments for certain expenses not covered by the association’s master policy so you don’t have to pay out of pocket
| Not applicable |
| What’s not covered | Condo exterior | Condo interior |
| Who pays the premium | Condo owners | Funded by condo association and HOA fees |
Condo hazard insurance typically covers the interior of your unit and a few other coverage types, including:
Personal property: Policies cover your furniture, clothing, electronics, appliances, and other personal belongings if a covered peril damages them or someone steals them.
Dwelling interior: Your interior walls, flooring, cabinets, countertops, and built-in fixtures also receive protection from the condo policy. But what you have coverage for depends on your association’s policy and whether it’s “bare walls” (little coverage for your interior), “single entity” (some coverage for your interior, most common), or “all-in” (maximum interior coverage).
Liability insurance: HO-6 insurance includes personal liability protection for legal costs and medical bills should someone sustain an injury inside your unit or you accidentally cause damage to another unit, like water damage from an overflowing sink.
Loss of use: Your policy will cover temporary additional living expenses if a covered loss makes your home temporarily uninhabitable, like hotel stays or meals.
Loss assessment coverage: If your HOA master insurance policy doesn’t fully cover a claim involving a common area, condo insurance can cover your share of the HOA assessment.
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It’s important to understand the limitations of condo hazard insurance coverage — specifically, the risks not listed in your policy documents. Insurers refer to these risks as exclusions, and condo hazard insurance typically excludes the following:[3]
Floods: Damage from overflowing rivers, storm surges, or other external, natural water sources.
Earth movements: Most policies exclude earthquakes, sinkholes, and mudslides.
Normal wear and tear: Your policy won’t cover worn-out carpeting or aging appliances.
Intentional damage: If you intentionally cause damage to your property, your insurance typically won’t cover it.
Damages covered by the HOA master policy: If your association’s master insurance covers something, such as roof damage, your policy typically doesn’t cover it.
Just because your policy excludes a peril doesn’t necessarily mean you can’t get coverage. You can buy additional coverage endorsements to close any gaps.
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Choosing the right coverage amounts depends on your personal property value, your condo association’s master policy limits, your liability needs, and special endorsements you add.
Personal property coverage: Walk through your home and make a home inventory of your furniture, clothing, electronics, decor, and other items. Record the cost to replace these items (not what you originally paid) and add up the total cost. This is the bare minimum amount of personal belongings coverage you need.
Dwelling interior coverage: Review your HOA master insurance policy to understand the length and limitations of dwelling coverage. If it’s “bare walls,” you’ll need higher limits than if it’s “all-in,” as you’re responsible for drywall, cabinets, upgrades, and more.
Liability coverage: Liability coverage typically comes with $100,000 coverage limits. But you may need higher limits, especially if you have high assets. Consider adding an umbrella policy to ensure you’re fully protected.
Endorsements: Depending on where you live, you may want to add endorsements for perils not typically covered by HO-6 insurance.
If you’re unsure about any part of this process, speak with your association or check with your insurance agent.
Many factors come into play when determining your condo insurance premiums. Luckily, coverage usually costs less than standard home insurance coverage because it only covers your unit and personal belongings.
That said, how much you pay will depend on:
Building age: Older buildings tend to cost more to insure.
Location: If you live in an area prone to floods, wildfires, crime, or other hazards, you’ll likely pay higher premiums or need additional insurance.
Coverage limits: Higher coverage limits typically come with higher premiums — but extra coverage is always worth it if lower limits would create a coverage gap.
Deductible amount: Higher deductibles (what you pay out of pocket during a claim) usually decrease associated premiums.
Claims history: If you’ve made insurance claims in the recent past, you may pay higher premiums.
Adding endorsements and optional coverages can strengthen your condo hazard insurance by eliminating coverage gaps left by most HO-6 policies. Here are some common options to consider.
Flood insurance: You can purchase flood insurance through the National Flood Insurance Program (NFIP) or a private insurance company to cover damage to your belongings and your unit’s interior.
Earthquake coverage: You can add this endorsement to your policy if you live in an area prone to earth movement.
Water backup: This covers damages from backed-up sewers, drains, and sump pumps usually excluded from condo insurance.
Replacement cost coverage: This pays out the cost to replace items versus the actual market value, which considerably increases your coverage.
Valuable items riders: If you have high-value items like jewelry, artwork, electronics, or collectibles, you may need extra protection.
Increased loss assessment: This raises the amount your policy will pay if the association charges a special assessment after a covered loss.
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You can use several smart strategies to lower your condo insurance premiums to avoid overpaying for coverage:[4]
Bundle policies. Buy your condo and auto insurance (or umbrella policy) from the same company to usually earn a multi-policy discount.
Raise deductibles. Higher deductibles usually translate into lower insurance premiums. Just be sure you can cover the additional out-of-pocket cost in the event of a claim.
Improve home security. Installing monitored alarm systems, water leak sensors, and other technology can qualify you for discounts.
Shop around. Rates vary considerably between different insurance companies. Review multiple insurance quotes for condo coverage to ensure you’re getting the best rate.
Review coverage annually. Reassess your coverage options and limits each year, and adjust coverage if needed. For example, you may need to increase limits if you’ve recently renovated your space.
If you’re shopping for condo hazard insurance, check out these answers to the most common questions condo owners ask.
If you have a mortgage, your lender will require you to carry condo hazard insurance. Most condo associations and HOAs also require unit owners to carry coverage.
Condo insurance coverage protects against some kinds of water damage, typically from interior water sources like a burst pipe. Often, you’ll need additional coverage for damages caused by flooding or sewer backup.
Loss assessment coverage helps pay your share of certain HOA special assessments after a covered loss. For example, storm damage exceeds the coverage limits of the master policy, unit owners usually split the remaining costs.
Yes. You can usually lower your condo insurance deductible, which lowers your out-of-pocket costs during a claim. Just keep in mind that lower deductibles often come with increased premiums.
J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
10+ years writing and editing insurance content
Published in Washington Post, LA Times, and more
Nick leads Compare.com's editorial team in creating helpful, easy-to-understand content about insurance and personal finance.
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
A licensed P&C agent in Missouri, MacK leverages his insurance expertise to fact-check and review Compare.com content.
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