Quick answer: Condo insurance (HO-6) covers three things your HOA's building policy doesn't: your unit's interior structure, your personal belongings, and your personal liability. Expect to pay $100-$400/year depending on your location and coverage limits.

Why your HOA's master insurance policy is not enough

When you buy a condo, your homeowners association already carries building insurance. HOA master policies typically cover only the structure of the building itself -- the roof, exterior walls, elevators, and common areas.

They do not cover:

• Your unit's interior walls, flooring, cabinets, fixtures, or appliances
• Your personal belongings (furniture, electronics, clothing)
• Improvements or upgrades you or a prior owner made to the unit
• Your personal liability if someone is injured in your unit
• Your additional living expenses if you can't live in your unit after a covered loss

An HO-6 policy -- the standard condo owner's insurance policy -- fills all of these gaps.

The "bare walls in" vs. "all in" problem

HOA master policies come in two forms, and which type yours is determines how much coverage you need on your HO-6.

Bare walls in: The HOA's policy covers the building's exterior and structural elements -- nothing inside your unit walls. Your HO-6 must cover your interior walls, floors, ceilings, appliances, and fixtures. More common in older buildings or associations that want to keep dues low.

All in (inclusive): The HOA's policy covers everything in original condition, including your unit's interior fixtures. Your HO-6 primarily needs to cover personal property, improvements you made over the original finishes, and liability.

Read your HOA's master policy documents or ask your HOA board which type applies. The answer changes how much dwelling coverage you need.

What HO-6 covers

Dwelling coverage (Coverage A): Pays to repair damage to your unit's interior -- walls, floors, ceilings, built-in appliances, cabinets. In a bare-walls-in building, set this high enough to cover a full interior rebuild. A rough estimate: $50-$100 per square foot of interior space.

Personal property (Coverage C): Pays to replace your belongings after theft, fire, water damage, and most other perils. Standard coverage is actual cash value (ACV), which deducts depreciation. Replacement cost coverage costs slightly more but pays what items actually cost new -- worth it for electronics and furniture.

Personal liability (Coverage E): Pays if you're found legally responsible for injuring someone or damaging their property. Standard limits are $100,000-$300,000. If someone slips in your unit or your bathtub overflows and damages the unit below, liability coverage responds.

Loss assessment coverage: If your HOA is sued or suffers a loss that exceeds its master policy limits, it can assess the costs to individual unit owners. Loss assessment coverage (usually available in $1,000-$50,000 increments) pays your share of that assessment.

Loss of use (Coverage D): Covers your hotel and living expenses if your unit becomes uninhabitable after a covered loss.

What HO-6 does not cover

The same perils excluded from most homeowners policies apply here:

• Flooding (requires a separate NFIP or private flood policy; see do I need flood insurance)
• Earthquake (separate rider or policy)
• Wear and tear, mechanical failure
• Damage from pests

How much coverage to buy

Personal property: Add up the estimated replacement value of your belongings. A common mistake is underestimating -- furniture, electronics, clothing, and kitchen equipment add up fast. $30,000-$50,000 is a reasonable starting point for a modest one-bedroom.

Dwelling: In a bare-walls-in building, calculate roughly $60-$80 per square foot for the interior. A 900 sq ft condo needs $54,000-$72,000 in dwelling coverage.

Loss assessment: Standard is $10,000. For larger associations with more shared infrastructure (pools, elevators, parking garages), consider $25,000 or more.

What it costs

HO-6 policies typically run $100-$400/year in most markets. Rates increase in hurricane-prone coastal areas and in high-crime urban zip codes. For most condo owners, it's one of the cheapest insurance products available relative to what it covers.

Frequently asked questions

Is condo insurance required by law?

No state legally requires HO-6 insurance. However, many mortgage lenders require it, and many HOA bylaws require unit owners to carry a minimum amount of coverage.

What if my neighbor's pipe floods my unit?

Your HO-6 covers the damage to your unit. You can then seek reimbursement from your neighbor's liability coverage (if they have it) or your HOA (if the pipe was in a common-area wall). Having your own coverage means you're not waiting on your neighbor's insurer.

Does condo insurance cover my car in the parking garage?

No. Vehicles are covered by your auto insurance, not your condo policy. Personal property inside your car stored in the garage may be covered up to a sublimit.

How is HO-6 different from renters insurance?

Both cover personal property and liability. HO-6 also includes dwelling coverage for your unit's interior -- something renters don't need because it's the landlord's responsibility. If you rent a condo, renters insurance is what you need instead.

Can I get HO-6 if my HOA already has "all in" coverage?

Yes, and you should. Even with all-in coverage, you still need personal property coverage, liability coverage, loss assessment coverage, and coverage for any improvements you made above original finishes.