What Is Condo (HO-6) Insurance? Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: On This Page
Tony Anderson/Getty Images September 02, 2022 Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. Amy Sims is a managing editor for Bankrate, leading a team responsible for creating educational insurance content. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Your condominium is probably one of your most valuable possessions, as are your priceless personal belongings. Like standard homeowners insurance, condominium insurance can protect you from financial hardship if your condo and its contents are damaged or destroyed. Condominium insurance can also provide claims coverage if others are injured in your condo. Compare rates and save on home insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form A condo insurance policy is a relatively inexpensive way for affordable and abundant peace of mind. Insurance Home Key takeaways Condo insurance usually covers the interior of your condo unit, personal belongings, liability exposure and coverage for temporary living expenses after a covered claim. Bankrate’s research revealed that State Farm, Erie and Hippo provide some of the best condo insurance policies. The National Association of Insurance Commissioners reports that condo insurance costs an average of $512 per year. What is condo insurance
Condo insurance, or an HO-6 policy, helps cover repair costs and financial losses arising from damages to the condo or claims against the condo owner. Condo insurance works in conjunction with a policy purchased by the condominium complex’s management, typically called HOA insurance or a master policy. The insurance industry refers to condo insurance as an HO-6 policy. Several types of provide different levels of protection for unit owners. Since HOA policies generally only cover the complex’s common elements or shared structures, you will want to purchase an HO-6 policy to provide coverage for your specific condo and the personal belongings within it. What does condo insurance cover
HO-6 policies generally cover the same types of perils as policies do for single-family homes, such as fire, explosions and theft. Typically, condo insurance policies include the following coverage types: : This protects the interior of your condo, including damage to elements like sheetrock and flooring. : Personal liability coverage helps cover a person’s injuries and legal fees if someone sues you over an incident in your condominium, including attorney fees, court costs and a court settlement. : This helps pay to replace personal belongings, such as furniture, clothing and electronics if a covered peril damages them or they were stolen. Guest medical payments: When a guest sustains an injury in your condo, guest medical payments coverage can help pay the medical bills, such as the emergency room fee, doctor bill and rehabilitation costs, up to your policy limit. : When a covered loss requires you to temporarily move out of your condo, your loss of use coverage can help pay accommodation and meal costs. If included in your policy, loss of use coverage usually pays the difference between your normal expenses and relocation costs. It is important to know whether your policy covers the of the items damaged by a covered peril. Typically a condo policy provides coverage for the replacement cost of damaged items and the cost to repair damaged interior structure elements or offers the option to acquire this level of protection. is the broader protection as it pays the entire amount necessary to replace items. On the other hand, only pays the depreciated value since the original purchase. Inclusions and exclusions
While most condo insurance policies include the coverage listed above, there are typically specific from the standard coverage. Although separate policies and riders can often be purchased to offer the necessary coverage, standard condo insurance policies typically exclude: Earthquake and flood coverage Outdated systems or equipment that need to be brought up to code Damage from leaks or sewer backup To provide the most protection, you may want to consider these additional coverage options: : If the HOA charges an additional assessment to condo owners to pay for a covered loss, this add-on can cover a condo owner’s share of the assessment. : This is a separate policy that increases your overall limit of liability protection. : This is additional coverage for itemized expensive items such as jewelry, furs, art, fine wine or collectibles. This is often referred to as a “floater.” HOA insurance vs condo insurance
HOA insurance includes two coverage types, liability and property. The liability coverage of a master policy can help pay medical costs and legal expenses if someone sustains an injury in a common area, like a clubhouse, lobby or swimming pool, but does not cover injuries sustained by guests within the walls of your condominium. Condo management can choose between three types of property coverage: All-in: All-in coverage provides the most protection for unit owners, as it covers the condo’s structure and any shared property. Additionally, it typically covers improvements you have made to your condo, like custom tile and wall coverings. Walls-in: Also called single entity coverage, this provides slightly more protection than a bare walls policy. It covers the building structure and systems, along with built-in features within units, like kitchen cabinets and recessed bookcases. Bare walls: This type of coverage provides the least protection for unit owners, as it only covers common areas and the building structure and its systems, like electrical wiring and plumbing. Your condo’s interior is not included. Before purchasing an HO-6 condo policy, it helps to know how much coverage the HOA policy already provides. If your complex carries an all-in policy, you may not need to carry much dwelling coverage. However, HOA policy exclusions are also important. For example, a master policy may cover the interior structure of your condo but exclude non-standard fixtures that you add, like expensive imported tile or a custom stained-glass window. Who needs condo insurance
Anyone who owns a or townhouse may want to consider purchasing a condo policy, and if you have a mortgage on the property, the lender usually requires it. The is important, and most standard condo policies include $100,000 to $300,000 in personal liability, which you can usually increase to fit your needs. If you think you need more liability protection than a standard policy can provide, you could purchase an umbrella policy, which kicks in after you reach the liability limit of your condo insurance policy. Most insurance companies will help you determine the dwelling coverage amount you need based on the square footage of the condo and finishes to rooms like the kitchen and bathrooms. If you want to get a ballpark idea about the coverage level you need, research the cost of construction in your area to calculate roughly how much it would cost to completely rebuild your condo, including materials, fixtures and labor. Condo owners covered by an all-in master policy may only need enough dwelling coverage to pay for losses the HOA policy excludes. The replacement cost of your personal items should be considered as well. Standard policies usually provide actual cash value personal property coverage, which only pays the depreciated value for your belongings. But most condo insurance carriers also offer optional replacement cost coverage, which could replace your belongings at current market prices. The best condo insurance
Finding the best condo insurance company involves understanding your needs and . Bankrate looked at factors like coverage offerings, discounts, availability and third-party scores from companies like and to find the best companies, based on our research. Keep in mind, though, that your own needs are unique to your situation, so the best condo company for you may differ. State Farm
State Farm’s standard condo policies provide all the basic coverages that many folks need and provide an impressive selection of . Counterfeit money and forgery expense protection pays up to $1,000 if a thief makes a fraudulent transfer from your account or if you unwittingly receive a counterfeit bill. In the event of equipment failure or a power outage, refrigerated products coverage can help pay to replace spoiled food in your refrigerator or freezer. Learn more: Erie
Erie’s condo policies are fairly standard but include impressive . These include debris removal coverage and lock replacement coverage, which pays to rekey or replace locks after a burglary for up to $250. Following a covered loss, your Erie policy could also pay for temporary repairs needed to prevent further damage. Erie policies also have a unique feature that pays the cost of emergency first aid for people or pets. Learn more: Hippo
Hippo is a fairly new company, but it’s worth a look for condo owners. The policy options are extensive, including coverage for home office equipment, water backup, equipment breakdown and valuables. You might also save on your policy by getting your quote eight or more days before your desired effective date, being in an HOA community, being mortgage-free or if your condo is a new purchase. Hippo Home Care could also help you with routine maintenance, which could help stop damage before it happens. Learn more: How much does condo insurance cost
Although costs vary significantly according to state and local factors, the average annual cost of condo insurance in the United States in 2018 was $512, according to the . Condo insurance providers set rates based on several factors, including: Age and type of construction Coverage types and amounts Deductible level Location Policyholder’s credit history (in most states) Policyholder’s marital status (in most states) Proximity to a fire station and fire hydrant Other factors, like whether you have a pool or trampoline, could also increase your rates due to higher liability risks. Insurers usually charge higher rates for condos located in areas prone to natural disasters such as hurricanes and wildfires. How can I save on condo insurance
Requesting quotes from several financially strong insurers could help you find the best coverage for your budget and needs. As part of this process, you could save money by: Asking for discounts. Many discounts vary by insurer based on loyalty to a current carrier, claims free discount and bundling your . Increasing the deductible amount. Investing in safety, home security, and disaster-resistant improvements to your condo. HO-6 vs HO-3 policies
The key difference between HO-3 and HO-6 policies is that cover single-family homes and HO-6 policies cover condominiums. As such, an HO-3 policy covers damage to the entire home, including internal and external structures of the home, as well as personal belongings and owner liability. On the other hand, an HO-6 policy also covers the condo from the “walls in” and personal belongings inside the condo. The exterior elements of the building, like the roof, are covered by the HOA master policy. Frequently asked questions
Will condo insurance pay for structural damage to my condo
It depends on the type of coverage you have. Most condo policies are walls-in, which means your HO-6 could pay for damage to the interior of your unit, depending on what caused the damage. Your HOA’s master policy would cover damage to the exterior of the building.
Is condo insurance required
Unlike car insurance, state laws do not require condo insurance, but institutions may. If you have a mortgage on your condo, nearly all lenders will require that you have condo insurance. Your HOA may also impose certain insurance requirements. Most importantly, for the relatively modest cost of annual coverage, it is almost always the wise choice to be protected with insurance.
Will my condo policy cover my medical expenses if I fall and sustain an injury in my condominium
No. Whereas medical payments coverage is typically included to cover potential medical expenses of guests injured in your condo, standard condo policies will not pay your medical bills if you sustain an injury at home.
If my building has an all-in HOA policy do I need condo insurance
Since HOA policies only protect the condo’s primary and shared structures, you may want to consider buying a condo insurance policy to protect your personal property and obtain coverage for loss of use and guest liability. It could also help protect home improvements made to your unit. SHARE: Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. Amy Sims is a managing editor for Bankrate, leading a team responsible for creating educational insurance content. Related Articles