HO-6 Insurance Policies

May 1, 2021 | Personal Insurance

There are multiple types of insurance that a person can avail of. The term “HO-6” applies to property protection specific to townhouse/condo owners. A few sorts of inclusion offered by insurance agencies — like homes, tenants, and townhouse protection — are composed by the Insurance Services Office (ISO). ISO’s standard property holders’ protection structures are the HO-3 and HO-5s. In this article, we will discuss HO 6 policies or condo insurance policies.

What is the difference between Homeowners Insurance and Condo Insurance Policy HO6?

Homeowners insurance is for homeowners, while Condo insurance policy is for those who own condominiums. Since condos reside in a local area, you’ll need a strategy that simply covers your unit. HO-6 policies approach is exclusively for the inclusion needs of condo owners. This protection will replace any stolen or harmed individual property that thieves took away from your home.

What does the Condo Insurance Policy HO6 include?

Inclusions for HO-6 policies are dependent on your building’s master policy. Before designing your condo’s interior, learn how it fits into the overall structure.

Three professional ways to determine how much housing inclusion you need in your condo suite plan:

  • The Bare Walls Coverage

Covers condo design, including drywall, outlining, wiring, plumbing, and protection. 

  • All-in Coverage

Ensure bare walls in policy coverage includes ledges, sinks, and implied machines. If you can’t take it with you and didn’t move it in, it’s likely covered. All-in coverage typically excludes unit renovations. It would be best if you had another HO-6 condo policy addition for that.

  • Single Entity Coverage

It covers bare walls and more. This coverage repairs or replaces condo fixtures. Suppose a car crashes through a condo’s wall and damages a built-in cabinet. The HOA policy provides insurance coverage for wall and cabinet repairs. This policy usually covers only the original fittings. Owner-added items aren’t covered.

What is the condo and my assets inside it protected from?

Unit Insurance protects several of your personal belongings and your condo. HO-6 has you covered if any of the following have damaged your condo or belongings:

  • Accidental discharge of steam or water
  • Aircraft, Explosions 
  • Falling objects
  • Fire and lightning
  • Riots, Smoke, &Theft
  • Weight of ice, sleet, or snow
  • Vandalism
  • Vehicles
  • Volcanic eruptions, wind, and hail. 

Named-peril insurance only covers certain disasters. HO-6 pays to replace stolen items if a criminal breaks into your condo. Condo insurance won’t cover frozen and busted kitchen plumbing. These policies have different components than homeowners’ insurance. 

How to choose what Insurance agency to get the HO-6 Policy from?

Advantage Insurance Solutions helps clients combine Home and Auto insurance to save money. Choose your insurer carefully. Team AIS enables you to save money and make intelligent decisions.

If your insurance firm doesn’t tell you, you should know the following:

  1. Most policies will not cover sewer backup unless you purchase a special endorsement—it’s not expensive, but you won’t get it if you don’t ask for it. 
  2. Damages caused by surface water or water that flows below the ground’s surface aren’t usually covered. 
  3. Standard Homeowners’ Policy typically does not include Flood Insurance. 
  4. Standard homeowner insurance policy only covers jewels up to set limits if the loss results from one of the perils named on the Policy. 
  5. Many policies default to actual cash value, which means if you purchased a widescreen TV and home theater system for $1,000, it may now only be worth $400, so that’s all you’ll receive on the claim. Like the dwelling limit, we stated previously, replacement cost insurance pays for the total replacement value of your possessions when claims are filed, not their market value.

AIS as Your Independent Insurance Agency

We hope you learned a lot about the condo insurance policy, also known as HO6. As we’ve already discussed, a condo needs protections that a homeowner’s insurance policy can’t give, so you’ll need two different policies. Let us help you find the best insurance for you today. Call Team AIS in Denver, CO to find out more.

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