Condo insurance (HO-6) explained

Your HOA buys a master policy for the building and shared spaces, like the roof, hallways and grounds. Your HO-6 policy covers what's inside your walls, your belongings and your liability. The two are meant to fit together, so start by reading your HOA's insurance documents.

Coverage depends on your policy, but most HO-6 policies include:

• Dwelling: the interior parts of your unit the master policy doesn't cover
• Personal property: furniture, clothing and electronics
• Personal liability: if someone is hurt in your unit or you damage a neighbor's unit
• Loss of use: extra living costs if a covered loss forces you to move out for a while
• Loss assessment: your share of certain costs the HOA charges owners

Master policies differ in how much of your unit they cover. Your HOA documents or the association's insurance agent can tell you which type you have.

• Bare walls: you insure drywall, cabinets, flooring and fixtures
• Walls-in: the master policy covers original finishes, and you cover upgrades

If you've redone the kitchen, added hardwood floors or upgraded a bathroom, the master policy may not cover those improvements. Make sure your HO-6 dwelling limit is high enough to rebuild them.

Say a storm damages the roof, and the master policy has a $50,000 deductible split among 50 units. You may owe $1,000. Loss assessment coverage can pay your share, up to its limit, if the loss is covered. Assessments for big losses can be larger, so check your limit.

• Whether the master policy is bare walls or walls-in
• The master policy deductible
• The value of your improvements and belongings
• Your loss assessment limit
• Water backup and other add-ons, which may not be included by default

Your lender needs proof of insurance before you close. CapCenter's insurance team works next to your loan consultant and can send proof of insurance to your closing. We recommend starting your quote once your offer is accepted.