What Is HO6 Insurance? How Does It Work In 2024?

While condo associations have some responsibility for insurance, it might be a good idea to purchase your own HO6 insurance. HO6 insurance is designed to fill the gaps that condo association fees may not cover. Condo association insurance typically covers the outside of your building and the common areas. HO6 insurance covers things inside your unit and provides personal liability and living expense coverage if your unit becomes uninhabitable.

What does HO6 insurance cover?

Your unit is likely not covered by your condo association’s insurance policy. If you’re renovating or have valuables like a big-screen TV or expensive jewelry, you probably want to be covered against theft or vandalism. You’ll also likely want to be protected from liability if one of your guests gets injured while visiting, or if a catastrophe happens and you need to temporarily move out while you repair the damage. HO6 insurance usually covers:

Fire and smoke damage
Wind and hail
Weight of ice, snow, or sleet
Explosion damage
Theft/malicious theft
Vandalism
Riots, civil disorder
Aircraft
Vehicles not owned or operated by a resident
Burst pipes
Lightning
Personal liability/medical payments
Loss assessment
Additional living expenses
Loss of use, including the cost of lodging/transport if the unit is uninhabitable

HO6 insurance usually doesn’t cover:

Regional hazards like earthquakes
Intentional injuries to others
Damage from underground or municipal water
Routine wear and tear

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How Does HO6 Insurance Work?

As opposed to your homeowner association’s insurance that covers common areas and the structure of the building itself, HO6 insurance will cover things like your personal belongings, accidents that occur in your apartment, and fixtures or improvements. File a claim with your HO6 insurance company if you experience a covered event. Sometimes you can file a claim with your HOA’s insurance company as well. For example, you’ll most likely need to file a claim only with your HO6 insurance company if a fire in your unit destroys your kitchen. But if the fire started in the building’s hallway and spread to your unit, you’ll probably need to get your HOA’s insurance company involved. Be ready to pay a deductible before your insurance provider issues your benefit.

Keep in mind that your mortgage lender might require you to purchase HO6 insurance as a condition of your loan. Your condo association might require certain coverages. HO6 coverage generally depends on the value of your belongings and the coverage level provided by your condo association’s insurance policy.

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How much does HO6 insurance cost?

According to the National Association of Insurance Commissioners, the average cost of HO6 insurance is $506 per year or $42 per month. Rates highly vary depending on:

Your location
Coverage amounts
Credit history
Age and condition of your unit
Deductible

Here’s a list of the top 5 most expensive states for HO6 insurance:

State	Average Annual Cost	Average Monthly Cost
Texas	$790	$66
Louisiana	$748	$62
Florida	$964	$80
Mississippi	$600	$50
Oklahoma	$631	$53

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Here’s a list of the top 5 cheapest states for HO6 insurance:

State	Average Annual Cost	Average Monthly Cost
Maryland	$310	$26
Iowa	$295	$25
South Dakota	$307	$26
Wisconsin	$280	$23
Utah	$269	$22

As previously mentioned, your rates will also depend on the amount of coverage in your policy. You’ll need coverage for things that your condo association’s insurance doesn’t cover, like damage to your floors, bathroom fixtures, walls, and other things in your condo.

Here’s a list of the average annual premium for 5 levels of coverage:

Coverage Limit	Average Annual Cost	Average Monthly Cost
$13,999 or under	$373	$31
$26,000-$31,999	$407	$34
$38,000-$43,999	$434	$36
$50,000-$74,999	$473	$39
$100 or over	$857	$71

We’ve compiled a list of the top HO6 insurance providers on the market right now to help you choose the best one for your needs:

Chubb – Best for homeowners who want high coverage limits and many perks
Nationwide – Best for homeowners seeking discount options
Amica – Best for customer service and lots of coverage options
Erie- Best for homeowners on the East Coast and in the Midwest
The Hanover – Best for homeowners looking to customize their policy
Kin – Best for homeowners who live in high-risk states
USAA – Best for homeowners who are current and former members of the military

Here are three main ways to reduce the price of your HO6 insurance:

Look for discounts – Sometimes you can save by bundling your HO6 and other insurance policies like auto insurance with the same company.
Shop around – Try to get quotes from several insurance companies to get the best price.
Raise your deductible – Only do this if you have enough savings to pay a higher amount in case of an emergency.

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Is HO6 insurance worth it?

Your homeowners association or mortgage lender might require you to buy an HO6 insurance policy with minimum coverage requirements. Even if you’re not required to buy HO6 insurance, consider doing so anyway. A condo is a valuable asset and you might not want to risk losing everything due to a catastrophe. HO6 insurance is relatively affordable, so it’s definitely worth considering.

Pros	Cons
Personal belongings and liability protection	Covers personal property on a named peril basis
Replacement cost payout	Not all insurance providers sell it
Some policies provide loss assessment coverage	–

Consider purchasing HO6 insurance if you’re in any of these situations:

You own valuable items – Accidents and catastrophes unfortunately can happen. You’ll likely want any damaged valuables recovered or replaced. HO6 insurance policies cover valuables damaged inside your home, giving you that extra peace of mind.
You have a pet/dog – HO6 insurance policies can cover events like your dog biting or attacking a visitor. The liability section of your HO6 insurance can help you cover any legal or medical expenses resulting from such an event. However, some insurance providers exclude certain breeds like Rottweilers or pit bulls from being covered. Be sure to check with your insurance provider to determine if your dog is properly covered.
You own an older unit – Consider buying HO6 insurance if features inside your apartment would be expensive to rebuild in the event of a catastrophe.

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