A condo isn’t a house, and it isn’t an apartment. The HO-6 is its own coverage problem.
Condo insurance (the HO-6 form) covers what your association’s master policy doesn’t — which varies dramatically depending on whether the association is on a ‘bare walls’ or ‘all-in’ master. The wrong assumption about what the master covers can leave you exposed for tens of thousands of dollars in the event of a unit-level loss.
Most condo programs aren’t underpriced. They’re under-built. Inadequate dwelling improvements coverage on a ‘bare walls’ association, missing loss assessment for special assessments, sublimited water backup, low personal liability limits, and no coordination with the unit owner’s umbrella — these are the gaps that don’t surface until a master policy comes up short on a building loss.
At Avanti Group, we run a Residential Risk Audit™ before we recommend any condo program. We review your association’s master policy, your governing documents, your unit improvements, and your assets — and structure HO-6 coverage that fits the gap.
The Coverage Lines That Matter Most
A complete HO-6 program covers the unit owner’s actual exposure. The components we evaluate include:
- Building Property — coverage for fixtures, finishes, and improvements that fall on the unit owner under the association’s governing documents
- Personal Property — the contents of your unit at replacement cost
- Loss of Use — living expenses while your unit is uninhabitable after a covered loss
- Personal Liability — bodily injury and property damage claims arising from your unit or activities
- Loss Assessment — coverage for special assessments levied by the association after a covered loss exceeds the master policy
- Water Backup & Sewer — for unit-level water damage from sewer or drain backup
- Personal Umbrella Coordination — for additional liability above the HO-6 primary
What Most Condo Programs Get Wrong
The master policy isn’t reviewed. Without understanding whether the master is bare walls, all-in, or somewhere in between, you can’t size the unit owner’s building coverage correctly. We read the master policy as part of placement.
Loss assessment coverage is too low. After a major building loss, the association can levy special assessments on unit owners that run into thousands or tens of thousands of dollars. Loss assessment limits should be raised accordingly.
Improvements aren’t valued. Renovated kitchens, bathroom updates, hardwood floors, and other improvements may not be covered under the master policy — and the unit owner’s HO-6 has to be sized for them.
How to Get Started
Condo insurance isn’t a commodity product. The right program depends on your association’s master policy, your unit improvements, and your personal exposure. We need to understand your situation before we can build the right program for it.
Call our office or use the button below to start a conversation. We’ll review your current coverage, your master policy, and your governing documents — and let you know exactly where you stand before we ever go to market.