Guides
HO-6 condo insurance explained: what it covers and how much you need
What the HO-6 unit-owners form covers, how it fits with the association's master policy, how to size dwelling and loss assessment limits, and lender rules.
An HO-6 (ISO HO 00 06, the "Unit-Owners Form") insures what the association's master policy does not: your belongings, the parts of the unit you are responsible for, loss of use while it is unlivable, your liability, and a small amount of loss assessment coverage. How much dwelling coverage you need depends on the association's master policy and governing documents, not on what the unit would sell for. The NAIC's 2023 data, published in July 2026, put the average HO-6 premium at $658 (NAIC).
The form details below come from the May 2011 edition, which the Maine Bureau of Insurance hosts publicly. Your insurer's form and your state's endorsements control.
What the HO-6 covers
| Coverage | What it insures |
|---|---|
| A, Dwelling | Alterations, appliances, fixtures and improvements that are part of the building within your unit; real property that pertains only to your unit; property that is your insurance responsibility under the association's agreement; structures you solely own at the location |
| C, Personal property | Your belongings anywhere in the world, with the same special limits for money, jewelry, firearms and similar items as the HO-3 |
| D, Loss of use | Added living costs and lost rent while the unit is unfit to live in |
| E, Personal liability | Damages you owe others, plus a defense |
| F, Medical payments | Guests' medical costs after an accident |
| Loss assessment | $1,000 for your share of an assessment after a covered property loss, and a separate $1,000 for assessments that follow a liability claim |
Coverage A has no preset percentage. The form takes the amount from the declarations page, so whatever figure the quote started with is what you carry. On the ISO form, both Coverage A and Coverage C are insured against the same 16 named perils used in the broad form, with flood, earth movement and sewer backup excluded. Two optional ISO endorsements switch the unit's interior and your belongings to open perils: HO 17 32 for Coverage A and HO 17 31 for Coverage C. See named perils vs open perils coverage.
The HO-6 pays Coverage A losses at the actual cost to repair or replace if you repair within a reasonable time, and at actual cash value if you do not. Unlike the HO-3, the 2011 form has no 80% insurance-to-value test on the building. Belongings are paid at actual cash value unless you add replacement cost, and the Washington Office of the Insurance Commissioner notes that condo contents coverage is often based on actual cash value (Washington OIC).
Where your policy meets the master policy
Two policies cover the same building, and the HO-6's "Other Insurance" condition decides who pays first. The 2011 wording makes your policy excess over insurance in the association's name, but primary for any part of a covered loss that the master policy does not pay because of its deductible. In plain terms, your Coverage A may help with the master deductible. ISO has an endorsement, HO 17 34, that adjusts this condition, and some insurers write the rule differently, so read your own form.
State law adds layers. Florida requires unit-owner policies to state that their coverage is excess over any other policy covering the same property (Fla. Stat. 627.714(4), 2026 Florida Statutes). In Maryland, a unit owner is responsible for the master policy deductible, up to $10,000, when a loss originates in that owner's unit, and an HO-6 with loss assessment coverage may pay that share (Maryland Insurance Administration). Your state's rules will differ; start at home insurance rules by state.
How to size Coverage A: a worked example
Say your association carries a bare-walls master policy, which leaves everything from the drywall inward to you (hypothetical figures throughout):
| Item | Replacement cost |
|---|---|
| Drywall, paint and trim | $18,000 |
| Flooring | $14,000 |
| Kitchen cabinets, counters and appliances | $35,000 |
| Bath fixtures, tile and vanity | $10,000 |
| Lighting and other fixtures | $3,000 |
| Total interior | $80,000 |
Coverage A should sit near $80,000, plus a margin for price changes. Under an all-in master that insures the interior as it was built, your exposure shrinks to upgrades you added, and under the third master type, all-in excluding improvements, it is the upgrades alone. bare walls coverage and all-in coverage describe the types, and condo master policies: what the association covers and what you cover compares them line by line.
The steps:
- Ask the board or manager for the master policy declarations or certificate of insurance and for the declaration and bylaws. Washington's regulator tells owners to review the certificate at each renewal.
- Identify the master type and which interior items belong to you.
- Price the rebuild of those items, using a contractor estimate or recent invoices for upgrades.
- Ask for the master policy deductible and check whether the documents pass it to owners.
- Set Coverage A to the rebuild figure, and size loss assessment separately for the deductible exposure.
Loss assessment: the limit most owners leave too low
The form's $1,000 limit covers your share of an assessment after a covered loss, such as storm damage to the roofs that exceeds the master limit. ISO's loss assessment endorsement (HO 04 35) raises it, and many insurers sell higher limits. Some states set a floor: Florida requires unit-owner policies issued or renewed after July 1, 2010 to carry at least $2,000 of property loss assessment coverage, with a deductible no higher than $250 (Fla. Stat. 627.714(1)).
Say the master deductible is $25,000, the documents bill it to the owner of the unit where the loss began, and a burst supply line in your unit triggers a claim (hypothetical). Whether your Coverage A or your loss assessment coverage pays that $25,000 depends on the form's wording, and if loss assessment is the only route, a $1,000 limit leaves most of it with you. The form excludes assessments tied to earthquake, and ordinary dues, deferred maintenance and reserve shortfalls are not covered at all because no covered loss triggers them. See Loss assessment coverage for HOA and condo owners.
Liability and your neighbors
A frequent condo claim is water leaving your unit and damaging someone else's. Coverage E responds to damage you are legally liable for, and your neighbor's insurer may pursue you after paying its own policyholder. Liability follows fault: a hose that fails without warning may not make you liable, while a tub you left running may. washing machine, water heater and dishwasher leaks covers the claim mechanics.
Gaps and add-ons
- Flood. The HO-6 excludes flood. FEMA's flood insurance manual (October 2025 edition) allows up to $250,000 of building coverage and $100,000 of contents for a residential condominium unit under the Dwelling Form (FEMA); see NFIP flood insurance explained.
- Renting the unit out. The form is written for a unit where you reside. Rental use calls for an endorsement such as ISO's HO 17 33 (Unit-Owners Rental to Others) or a landlord policy; see landlord insurance: what a rental property policy covers.
- Co-ops. Shareholders usually buy an HO-6 too; see co-op apartment insurance.
What lenders require
Fannie Mae's Selling Guide requires a unit-owner policy when any interior portion or improvement is not covered by the master policy or when the master policy has a per-unit deductible. Coverage must be at least the greater of the amount needed to restore the uncovered interior or the per-unit deductible, on a replacement cost basis, and the HO-6 deductible cannot exceed the greater of 5% of the coverage amount or $2,500 (B7-3-04, version dated August 5, 2026). Freddie Mac's Bulletin 2026-C, issued March 18, 2026, sets the same deductible cap. See Fannie Mae and Freddie Mac homeowners insurance requirements.
Key takeaways
- The HO-6 covers your belongings, the unit parts you are responsible for, loss of use, liability and a thin layer of loss assessment coverage.
- Size Coverage A from the master policy type and the governing documents; the declarations-page default is rarely enough.
- Your policy is excess over the master policy but may respond to the master deductible, depending on the form and state law.
- Raise loss assessment above $1,000 if your documents let the association pass deductibles or shortfalls to owners.
- Flood, earthquake and sewer backup need separate coverage, and lenders set minimums on dwelling coverage and the deductible.