What is an HO-6 or Condo insurance policy?

May 1, 2021 | Personal Insurance

There are multiple types of insurances that a person can avail of, and one of the most familiar types of insurance that usually people get is the homeowner’s insurance policy because mainly, their houses are of high value including the furniture and fixtures inside.

To explain further, this type of insurance covers unexpected losses and harms to a person’s home, together with the furnishings and other assets inside the house. Holders of this protection likewise give risk inclusion against unfortunate events in the home or on the property.

Perhaps, it is the most ideal approach to secure your most costly resource which is your home. It’s not difficult to anticipate things like fire, trespassing, and theft will not occur – until they do. Regardless of whether it is extreme harm from climate-related episodes or the robbery of your adornments, TV, and different resources, homeowners insurance can help cover you from a serious financial difficulty. 

The term “HO-6” applies to a kind of property protection specific for 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), an industry-driving factual and actuarial association. The standard property holders protection structures composed by ISO are the HO-3 and HO-5s, the tenant’s protection structure is an HO-4, and the apartment suite proprietor’s protection structure is an HO-6. 

What is the difference between Homeowners Insurance from Condo Insurance Policy?

In an instance that your house is harmed, your insurance will take care of the expenses of fixing or repairing your home and its substance following the episode. Homeowner’s insurance arrangements also cover the garage or car park.

This protection will replace any stolen or harmed individual property that was taken away from your home. In instances that a visitor is harmed on your property, your insurance will also help you pay legal and medical expenses. And lastly, homeowner’s protection will pay your everyday expenses if you need to move out of your home since it has become uninhabitable because of damages brought by unexpected incidents.

With this information, it will be easier to explain now what HO-6 or Condo insurance policy is because it is almost the same thing, homeowners insurance is for homeowners while Condo insurance policy is for those who own condominiums.

However, condo units require a special kind of protection insurance that a homeowner’s insurance does not cover. Since condos reside along a local area, you’ll need a strategy that covers simply your unit and the individual things inside it that make it a home. HO-6 approaches are constructed exclusively for the inclusion needs of condo owners. These adaptable strategies permit you to modify your inclusion, to give the perfect measure of assurance, while trying not to over-guarantee your property.

What does the HO-6 policy include?

The extent of HO-6 inclusion will rely upon the degree of inclusion in your apartment suite building’s master policy as of now. You’ll need to discover how the inside construction of your condo is covered by the structure strategy before setting up your own. 

To help you with that there are three fundamental sorts of expert approaches that decide how much dwelling inclusion you need in your condo suite strategy: 

  • The Bare Walls Coverage

Covers simply the design of the condominium, so fundamentally everything behind the townhouse walls, including the actual drywall, outlining, wiring, plumbing, and protection.

  • All-in Coverage

Ensures that all bare walls-in policy covers, however, incorporates inclusion for fixtures, similar to ledges, sinks, and implicit machines. A useful method to consider all-in inclusion is on instances that you can’t take it with you and you didn’t move it in, it’s presumably covered. All-in inclusion ordinarily excludes coverage for remodels or renovations made to the unit. For that, you need another supplemental inclusion in your HO-6 condominium policy. 

  • Single Entity Coverage

Covers what a bare wall policy does, and more. This kind of coverage pays to fix or replace built-in fixtures in each condo unit. For example, if a vehicle accidentally smashes through the walls of the condo and destroys a built-in cabinet, the HOA policy would pay to fix the wall and replace the cabinet. This kind of policy regularly restricts inclusion to coverage of the original built-in fixtures and will not cover components added by the unit owner.

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

There are a lot of things that your assets and your condo are protected from with the help of the Condo Insurance Policy. In the event that any of the following have disrupted your condo or your valued possessions inside it, HO-6 got you covered: 

  • 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 policies only cover misfortunes brought about by the list mentioned. For instance, if a criminal burglarizes your condominium, your HO-6 approach will pay to replace the things that were taken or stolen. In any case, if your kitchen pipes freeze and burst, your condo policy will not cover the harm since freezing is excluded as a covered risk. 

Condo policies are not the same as homeowners in the sense that there are specific components: condo units are covered by a policy purchased by the condo affiliation, while others are covered by the unit proprietors’ HO-6 policy. Buying condo insurance expects you to find some kind of balance between what the community’s policy will cover and the extra security you need from HO-6 inclusion. 

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

Some insurance agencies like AIS can also help clients find options to combine certain policies like Home insurance and Auto insurance to maximize savings. This is why it is important to be keen on choosing your insurance provider. AIS makes sure that you get the most value for your money and help you make an informed decision. 

Some of the information that you should be aware of if not mentioned by your insurance agency would be 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 surface of the ground 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. Just like the dwelling limit, we stated previously, replacement cost insurance pays for the total replacement value of your possessions when claims are filed and not their market value.

AIS as Your Independent Insurance Agency

As mentioned earlier, there are certain types of protection that a condo needs that a homeowner’s insurance can’t give so you must avail a different policy for both. Give us a chance to help you find the coverage that is right for you today! Call us toll-free at (855) 973-1202 or (855) 712-6584.