Home Insurance Coverage for Condominiums

To get a home insurance quote on a condominium, you must apply for a special type of coverage known as HO6 insurance. Also known as “walls-in coverage,” this type of policy only covers your personal property and the interior structure of your single unit, rather than the entire apartment building, itself. The building’s master insurance policy, however, covers the structure of the condominium building and all common areas within it. Typically, each condo owner within the building pays a portion of the master insurance policy as part of the condo’s HOA fee. 

To obtain a cheap homeowners insurance policy for your single unit, it is important to shop around and obtain quotes from several different companies before selecting a policy. Depending on where in the U.S. you live, average rates range between $200 and $1,467 per year. However, your premiums will also vary depending on the size of the condo, your building’s master policy and the level of coverage you need. 

To learn more about obtaining home insurance quotes for condominiums, review the information below. 

Comparing an HO3 Policy and HO6 Policy 

The type of insurance coverage you need depends on whether you purchase a home, condo or another type of property, such as a mobile home. When you purchase a home, rather than a condo, for instance, your policy must cover damages that occur in and outside of your home, as well as to the land on which your home sits. Several common types of insurance policies for homeowners include the below: 

  • HO1.
  • HO2.
  • HO3.
  • HO5. 

Moreover, an HO6 insurance policy is a special type of coverage for condo owners. When you own a condominium, you are responsible for covering the inside of your unit, but not the entire building. The building’s master insurance policy covers everything else, including the common areas, roof, elevators and structure. However, some master policies cover more than others. 

While HO3 and HO6 policies are popular types of insurance coverages for property owners, there are several, notable differences between these two policies. Review the sections below to learn more about the differences between each type of policy. 

An HO3 Policy for Homeowners

HO3 coverage is also known as a “special form” policy for homeowners, as this option includes a combination of basic coverages (HO1 insurance) and broad form coverages (HO2 insurance) for damages that result from fire, smoke, vandalism, theft, falling objects and other named perils. 

Unlike HO1 and HO2 policies, an HO3 insurance policy also covers many unnamed perils, such as personal belongings, decks and garages. In some cases, this type of policy may also protect you from personal liability if you unintentionally damage another individual’s property. 

Home Insurance Coverage for Condo Owners

When you buy a condo rather than a home, your mortgage lender will typically require you to purchase a certain amount of HO6 coverage, in order to meet the terms of your loan. This type of policy includes:

  • Protection for the inside of your unit, including its walls, carpeting, countertops, ceilings and any built-in fixtures or bookcases. 
  • Personal liability coverage for damages or injuries that occur within your unit.
  • Protection for certain personal belongings within your unit, including jewelry, furniture, electronics or clothing. 

When obtaining an HO6 policy for your condo, you may wish to purchase additional coverages to protect yourself even further, even if your mortgage lender does not require you to do so. These additional coverages may include flood and/or umbrella insurance. 

How to Get a Condo Insurance Quote

There are several ways to get condo insurance quotes before selecting a new policy for your condominium. You may choose to compare quotes online through companies such as Geico, Allstate, State Farm, Farmers and Progressive, or you may work with an independent insurance agent if you prefer. An independent agent will take the time to compare rates from multiple companies, helping you to find the cheapest option for your needs. 

When obtaining a home insurance quote for your condo, you will typically need to provide the following information: 

  • Your contact information
  • Your full name and date of birth
  • Your ZIP code
  • Your gender and marital status
  • The estimated value of your personal possessions
  • The size of the condo 
  • Your current policy’s coverage limits (if applicable)

When looking for a cheap homeowners insurance policy, you may qualify for a discount on your premiums, if you purchase multiple coverages through the same company. If you purchase automobile insurance through Nationwide, for instance, you may get the best deal on your premiums if you insure your condo through the same company.    

Applying for Cheap Homeowners Insurance

Before purchasing an HO6 policy for your condominium, it is important to determine how much coverage you need. In most cases, the amount of coverage you need will vary, depending on your building’s master policy. If your building’s master policy provides you with “bare walls” coverage, for instance, you will need to determine the estimated amount of rebuilding your unit to “good as new” condition. This estimated cost will determine the amount of coverage you need. 

Moreover, “single entity” and “all-in-one coverage” are other types of master insurance policies for condominiums. “All-in-one coverage” is the most comprehensive type of policy, while “single entity” coverages extend beyond a “bare walls” insurance policy. Typically, the home insurance coverage you select for your condo will cover the various perils that the master policy does not.  

In addition to the estimated cost of rebuilding your condo, you may choose to purchase personal liability coverage, along with any other coverages that your standard policy does not include. To help you determine the estimated amount of your personal property, it is a good idea to perform a home inventory before applying for coverage. When calculating the amount of homeowners insurance coverage you need, several mobile apps, such as MyHome Pro: Home Inventory, Box It Up and Playcolors Home Inventory, can help to simplify the process. 

To get the cheapest homeowners insurance policy for your situation, it is important to speak with a licensed agent, as he or she can help you to calculate the amounts that may be right for you. A licensed insurance agent can also help you to obtain discounts on insurance premiums, especially if you are retired or have a security system, or another protective device, installed within your condo.