The Saint Paul Condo Blog

A question I get asked from time to time is "What is a HO-6 policy?"  Then the follow up to that is typically is "Do I need it?"

Well, for starters, a HO-6 Policy is a type of Home Owners insurance (hence the H.O.) It's designed for condominium owners, since just about all condos have a master insurance policy that covers the building.

While a master policy is a good start, and lenders will allow you to purchase the property without any additional coverage (unlike a single family home).  What's not covered under this policy is your personal belongings.  This could also include the appliances, cabinets, lights, & etc.

This is where the HO-6 kicks in.  You set the limit on your own coverage (now nice is your stuff?), and your own deductible. 

One really important add on for your policy is deductible coverage.  This is one item that gets missed a lot!  AND it's extremely important!!!

Most master policies have deductibles ranging from $5,000 to $10,000.  If for example you had a kitchen fire in your condo which cause damage (usually mass amounts of WATER damage) to the building, you, as the condo owner, would be responsible for the associations' deductible!  If you don't have coverage for this deductible, the association could file a lien against the property!

If I were building a new development, I would require all owners to carry a HO-6 policy, it would make for a healthier association.

For more information on HO-6 policies, Visit the For Buyers Page or click What's Condo Insurance