A condo is two policies sharing one building. Knowing where the HOA’s coverage stops and yours starts is the whole game.
How the two policies fit together
The HOA master policy covers the building structure and common areas. Your condo policy, an HO6, covers the inside of your unit and you. Exactly where the line falls depends on the master policy, which may cover to the studs, to bare walls, or include original fixtures.
| HOA master policy | Your HO6 condo policy | |
|---|---|---|
| Building shell and common areas | Covered | Not covered |
| Interior, improvements, fixtures | Often not, varies | Covered |
| Your belongings | Not covered | Covered |
| Your liability | Not covered | Covered |
| Loss assessments | Not covered | Covered if you carry it |
What an HO6 covers
A condo policy generally covers your unit’s interior and any improvements you made, your personal property, personal liability, loss of use, and loss assessments. The loss assessment piece is the one owners most often overlook.
Loss assessments, the hidden exposure
When the HOA has a large claim, it can charge owners for the master policy deductible or an uncovered shortfall. Loss assessment coverage on your HO6 reimburses your share, often up to a limit you can raise. Without it, the bill is yours.
What Vantage Point looks for when reviewing this
When we review a condo, we read the HOA master policy to find where its coverage ends, then build the HO6 to start there: interior and improvements, belongings, liability, loss of use, and enough loss assessment coverage for the building you are in.
Questions to ask your advisor
- Where does my HOA master policy stop, to the studs, bare walls, or original fixtures?
- Does my HO6 start exactly where the master policy ends?
- How much loss assessment coverage do I carry, and is it enough for this building?
- Are my interior improvements and upgrades reflected in the limit?
- Does my HO6 include liability and loss of use at limits that fit my situation?
Want guidance first? Compare your coverage. Already know what you need? Get a quote.