---
title: "Condo Insurance (HO-6): What the Master Policy Covers, What You Insure, and How Loss Assessment Works"
description: "An HO-6 condo policy covers what the association's master policy leaves to you: belongings, interior items, liability and your share of loss assessments."
url: "https://riskado.com/condo-insurance-ho6/"
lang: "en"
published: "2026-10-13"
modified: "2026-10-13"
tags: ["condo-insurance","ho-6-policy","master-policy","loss-assessment","homeowners-insurance"]
image: "https://riskado.com/og/default.jpg"
alternates:
  es: "https://riskado.com/es/seguro-de-condominio-ho6.md"
---

# Condo Insurance (HO-6): What the Master Policy Covers, What You Insure, and How Loss Assessment Works

Riskado

Oct 13, 2026 · 10 min read

![A mid-rise condominium building with balconies and a landscaped entrance on a sunny day](https://riskado.com/blog/condo-insurance-ho6/featured.jpg)

Condo insurance usually means an HO-6 [policy](https://riskado.com/insurance-terms/policy/), the unit-owners policy you buy for your own condo. The association's master policy covers the common areas, such as the roof, basement, elevator, boiler and walkways, and it may cover some or all of the inside of each unit, according to the [Insurance Information Institute (opens in a new tab)](https://www.iii.org/article/insuring-a-co-op-or-condo). Where the association's [coverage](https://riskado.com/insurance-terms/coverage/) stops is set by the declaration, the bylaws and the master policy. Your HO-6 picks up from there: your belongings, the interior items and improvements the master policy leaves to you, personal [liability](https://riskado.com/insurance-terms/liability-insurance/), [medical payments](https://riskado.com/insurance-terms/medical-payments-coverage/), extra living costs and your share of certain association assessments. Flood and [earthquake](https://riskado.com/insurance-terms/earthquake-insurance/) usually need separate coverage.

### Key takeaways

- **What condo insurance means**Usually an HO-6 policy, the unit-owners policy you buy for your own condo.
- **The master policy**It covers common areas such as the roof, basement, elevator, boiler and walkways, and may cover some or all of the inside of each unit.
- **Where the line sits**The declaration, the bylaws and the master policy set where the association's coverage stops.
- **What your HO-6 picks up**Belongings, the interior items and improvements left to you, personal liability, medical payments, extra living costs and your share of certain assessments.
- **Flood and earthquake**These usually need separate coverage.

## What does the condo master policy cover?

The association buys the master policy, and its [premium](https://riskado.com/insurance-terms/premium/) comes out of your dues. It covers the common areas you share with other owners, with physical damage and liability coverage. How far it reaches into your unit depends on the building, and three labels come up often:

- **Bare walls.** The association insures only the bare walls, floor and ceiling. You insure the kitchen cabinets, built-in appliances, plumbing, wiring and bathroom fixtures, according to the Insurance Information Institute.
- **Single entity, or as originally built.** The association insures each unit as it was first built, including the standard fixtures. You insure the alterations, such as a remodeled kitchen or bathroom.
- **All-in.** The association insures more of the interior, which can include fixtures and finishes, subject to its policy and documents.

These labels are shorthand, not legal definitions. Two buildings that both call themselves bare walls can draw the line in different places, and state law can move it too. Florida, for example, requires the association's policy to cover the condominium property as originally installed, and excludes the unit's personal property, floor, wall and ceiling coverings, appliances, water heaters, cabinets, countertops and window treatments, which become the unit owner's responsibility under [Fla. Stat. § 718.111(11) (opens in a new tab)](https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0718/Sections/0718.111.html).

![The lobby and elevator area of a condominium building, clean and empty](https://riskado.com/blog/condo-insurance-ho6/common-areas.jpg)

The master policy covers common areas such as the lobby, elevator, roof and walkways.

## What does an HO-6 policy cover?

Condominium insurance covers your personal property and the interior of your unit, and it also gives liability protection and pays additional living expenses, according to the [Texas Department of Insurance home insurance guide (opens in a new tab)](https://agate.tdi.texas.gov/pubs/consumer/cb025.html). The pieces break down like this:

- **Personal property:** household contents and other belongings used, owned or worn by you and your family, as the [NAIC (opens in a new tab)](https://content.naic.org/consumer/homeowners-insurance.htm) defines it, subject to limits and special caps on items like jewelry.
- **Building property inside the unit:** alterations, appliances, fixtures and improvements within the unit that the master policy doesn't cover, according to the [NAIC home-sharing white paper (opens in a new tab)](https://content.naic.org/sites/default/files/publication-ihs-op-home-sharing.pdf).
- **Personal liability:** medical bills, lost wages and other costs for people you are legally responsible for injuring, damage you cause to other people's property, and court costs if you are sued over an accident, according to the Texas Department of Insurance.
- **Medical payments to others:** medical bills of people hurt on your property, and in some cases away from home.
- **Additional living expenses:** the extra cost of living elsewhere when a covered loss makes the unit uninhabitable.
- **Loss assessment:** your share of certain charges the association levies on all owners after a covered loss.

An HO-6 doesn't automatically cover everything inside the walls. It covers what its form and limits describe, after the master policy has done its part, which is why the next step is reading both documents side by side.

![Kitchen cabinets, a countertop and built-in appliances inside a condo unit](https://riskado.com/blog/condo-insurance-ho6/unit-interior.jpg)

Cabinets, counters and built-in appliances may fall to the master policy or to your HO-6, depending on the building.

## How do you find the line between the two policies?

The association's own documents draw the line, and the board or the management company can usually give you copies, according to the Insurance Information Institute. Ask for:

- The declaration of condominium and any amendments
- The bylaws and the rules on maintenance and repair responsibility
- The current master policy certificate and a coverage summary, with endorsements
- The master policy's property deductible
- The association's flood policy information
- Any insurance requirements the association sets for owners

Then put specific questions to the manager in writing. Does the master policy cover only bare walls, the unit as originally built, or broader interiors? Are drywall, flooring, cabinets, countertops, appliances, plumbing, wiring, fixtures and windows included? Are owner improvements covered? What is the deductible, and can it be charged to one owner? Does the association carry flood insurance? With those answers in hand, an agency can set the HO-6 building and contents limits against the gap the master policy leaves.

## What is loss assessment coverage?

Loss assessment coverage reimburses your share of a charge the association levies on all owners after a covered loss, such as repairs after a fire in the lobby, according to the [Insurance Information Institute (opens in a new tab)](https://www.iii.org/article/insuring-a-co-op-or-condo). Standard homeowners and unit-owners policies typically include it, according to the NAIC.

It pays only when the assessment fits the policy. The cause of the loss has to be a covered peril under your HO-6, and the payment stops at your loss assessment limit after any deductible. An assessment after a flood, when your policy excludes flood, or a special assessment to rebuild reserves or pay for routine maintenance, generally sits outside it. Ask what your limit is, whether it can be raised, and whether it applies to an assessment for the association's deductible.

State law can set a floor. In Florida, for example, a unit-owner policy issued or renewed on or after July 1, 2010 must include at least $2,000 in property loss assessment coverage for assessments from a covered direct loss, with a deductible of no more than $250 per direct property loss, under [Fla. Stat. § 627.714 (opens in a new tab)](https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.714.html). Other states set different rules or none, so your own state insurance department is the place to check.

## How can the association's deductible reach you?

A large master policy deductible can turn into an assessment on owners. Whether it does, and how it is split, depends on the declaration and bylaws, who is responsible for repairing the damaged area, the master policy, the cause of the loss and your state's condominium law. In Florida, for example, association policies may include deductibles set by the board under [Fla. Stat. § 718.111(11) (opens in a new tab)](https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0718/Sections/0718.111.html).

Two questions narrow it down. Ask the association what the property deductible is and how the governing documents allocate it when a loss starts in or affects one unit. Then ask your agency whether your loss assessment coverage responds to a deductible assessment, and up to what amount.

## How is condo insurance different from homeowners and renters insurance?

The difference comes down to who owns and insures the building:

Homeowners, condo and renters insurance compared

Hover or tap a row to highlight it.

| Policy | Who it is for | The building | Belongings, liability and living costs |
| --- | --- | --- | --- |
| Homeowners (HO-3) | Owner of a house | The owner insures the whole structure | Covered, subject to the policy |
| Condo (HO-6) | Owner of a condo unit | The association insures common areas; the owner insures what the master policy leaves out | Covered, plus loss assessment |
| Renters (HO-4) | Tenant | The landlord's policy; renters insurance won't pay to fix the building | Covered, subject to the policy |

Renters insurance won't pay to fix the house or apartment building, according to the [Texas Department of Insurance (opens in a new tab)](https://agate.tdi.texas.gov/pubs/consumer/cb025.html). If you plan to rent out your condo, the policy question changes again; our guide to [landlord insurance vs homeowners insurance](https://riskado.com/landlord-insurance-vs-homeowners-insurance/) covers what to tell the insurer.

## How are water, sewer backup, flood and earthquake losses handled?

Water losses depend on the cause and the policy wording. A sudden burst pipe is treated differently from slow seepage, deterioration or a maintenance problem. When water comes from the unit above, payment can depend on the source, any negligence, the governing documents, state law and whether the damage is to association property, your unit's interior or your belongings. Our guide to [whether homeowners insurance covers water damage](https://riskado.com/does-homeowners-insurance-cover-water-damage/) walks through the sudden versus gradual distinction.

Sewer or drain backup is excluded from both the condo policy and a flood policy, so it takes a water backup endorsement, according to the [Insurance Information Institute (opens in a new tab)](https://www.iii.org/article/insuring-a-co-op-or-condo). Separate flood and earthquake coverage may be necessary if you live in an area prone to those disasters.

Flood insurance for a condo has two layers under the National Flood Insurance Program. The association can buy a Residential Condominium Building Association Policy, or RCBAP, for the building, and when one is in force it is always primary, according to [FEMA flood adjuster training (opens in a new tab)](https://emilms.fema.gov/IS1104/groups/103.html). Building improvements are insured under the RCBAP even when the owner paid for them. A unit owner can buy a Dwelling Form policy for contents, and if it insures personal property, it extends to the interior walls, floor and ceiling not covered by the association's flood policy, for no more than 10 percent of the personal property limit. Ask the association whether it carries an RCBAP before you choose your own flood limits.

![Water stains on a condo ceiling near a light fixture](https://riskado.com/blog/condo-insurance-ho6/water-from-above.jpg)

A leak from the unit above can involve the master policy, your HO-6 and your neighbor's policy.

## What does a mortgage lender require?

Lenders set their own insurance conditions, and loans sold to Fannie Mae follow its Selling Guide. A master property insurance policy is required for the common elements and residential structures, and it must provide coverage on a replacement cost basis, with the exception of roofs, under [Fannie Mae Selling Guide B7-3-03 (opens in a new tab)](https://selling-guide.fanniemae.com/sel/b7-3-03/master-property-insurance-requirements-project-developments) (08/05/2026). The borrower must keep an individual unit-owner policy when the master policy doesn't cover the unit's interior or improvements, or when it has a per-unit deductible.

The unit-owner policy must be at least the greater of an amount sufficient to restore the uncovered interior or improvements to their condition before the loss, or the per-unit deductible, and its deductible can be no more than the greater of 5 percent of the coverage amount or $2,500, under [Fannie Mae Selling Guide B7-3-04 (opens in a new tab)](https://selling-guide.fanniemae.com/sel/b7-3-04/individual-property-insurance-requirements-unit-project-development) (08/05/2026). These are Fannie Mae's conditions for the loans it buys, not a state law, and your lender's written instructions control your loan.

Condo insurance figures cited in this guide

Hover or tap a row to highlight it.

| Rule | Figure | Source |
| --- | --- | --- |
| Example: Florida minimum loss assessment coverage | At least $2,000, deductible no more than $250 per direct property loss | [Fla. Stat. § 627.714 (opens in a new tab)](https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.714.html) |
| Fannie Mae master policy settlement | Replacement cost, except roofs | [Selling Guide B7-3-03 (opens in a new tab)](https://selling-guide.fanniemae.com/sel/b7-3-03/master-property-insurance-requirements-project-developments) |
| Fannie Mae unit-owner policy amount | Greater of the amount to restore uncovered interior or improvements, or the per-unit deductible | [Selling Guide B7-3-04 (opens in a new tab)](https://selling-guide.fanniemae.com/sel/b7-3-04/individual-property-insurance-requirements-unit-project-development) |
| Fannie Mae unit-owner policy deductible | No more than the greater of 5% of coverage or $2,500 | [Selling Guide B7-3-04 (opens in a new tab)](https://selling-guide.fanniemae.com/sel/b7-3-04/individual-property-insurance-requirements-unit-project-development) |
| NFIP unit-owner interior coverage under contents | No more than 10% of the personal property limit | [FEMA training (opens in a new tab)](https://emilms.fema.gov/IS1104/groups/103.html) |

## How should you document belongings and improvements?

A home inventory helps you decide how much coverage fits and supports a claim later, according to the [NAIC (opens in a new tab)](https://content.naic.org/consumer/homeowners-insurance.htm). Group belongings by category, photograph them with their age and value, keep receipts and appraisals, and store a copy away from the unit.

Improvements need their own record. List the upgraded flooring, cabinets, counters, fixtures, appliances and built-ins, with invoices and dates, and compare the list with what the master policy covers. Ask whether the HO-6 pays replacement cost or actual cash value on both belongings and improvements. Replacement cost pays at current prices, while actual cash value subtracts depreciation, according to the Texas Department of Insurance; our guide to [replacement cost vs actual cash value](https://riskado.com/replacement-cost-vs-actual-cash-value/) shows the difference on a claim. Update the inventory after a renovation or a major purchase.

![A phone on a small tripod pointed at a remodeled bathroom vanity in a condo](https://riskado.com/blog/condo-insurance-ho6/improvements-record.jpg)

A dated record of upgrades shows what the HO-6 building limit needs to cover.

## What should you ask the association and an agency?

Ask the association:

- Is the master policy bare walls, as originally built or all-in?
- Which interior items does it cover, and does it cover owner improvements?
- What is the property deductible, and can it be assessed to one owner?
- Does the association carry flood insurance, and is it an RCBAP?
- How are claims involving more than one unit reported?

Ask the agency:

- What HO-6 building limit covers the interior items and improvements the master policy leaves out?
- What is my loss assessment limit, and does it apply to a deductible assessment?
- Does the policy pay replacement cost or actual cash value?
- Is water backup coverage included or available by endorsement?
- Do I need separate flood or earthquake coverage here?
- Does the policy meet my lender's requirements?

**Quiz: Check what you know about condo insurance**

1. Which policy form is designed for a condo unit owner?
   - HO-3
   - HO-4
   - HO-6 **(correct answer)**
2. Who usually buys the master policy?
   - Each unit owner
   - The condominium association **(correct answer)**
   - The mortgage lender
3. Does a standard condo policy cover flood?
   - Yes, always
   - No, flood takes separate coverage **(correct answer)**
   - Only on the ground floor
4. What sets the line between the master policy and your HO-6?
   - The governing documents, the master policy and state law **(correct answer)**
   - The unit's market value
   - The size of the unit
5. What does loss assessment coverage pay?
   - Any special assessment
   - Your share of certain assessments after a covered loss, up to the limit **(correct answer)**
   - Monthly association dues

## Frequently asked questions

### Do I need condo insurance if my HOA has insurance?

The master policy covers the association's share, not yours. Your belongings, your liability and any interior items or improvements the master policy leaves out need their own policy, and many lenders and associations require one.

### Does HO-6 insurance cover a special assessment?

Loss assessment coverage can pay your share of an assessment that follows a covered loss, up to your limit. An assessment for reserves, routine maintenance or an excluded cause such as flood usually falls outside it.

### Who pays the condo master policy deductible?

The declaration, bylaws, state condominium law and the facts of the loss decide whether the deductible can be charged to owners. Ask the association how its documents allocate it, then ask your agency whether loss assessment coverage responds.

### Does condo insurance cover sewer backup?

Sewer and drain backup is excluded from both the standard condo policy and a flood policy, according to the Insurance Information Institute. A water backup endorsement adds it, so ask whether your HO-6 includes one and what limit applies.

## The next step

Get the master policy certificate and the governing documents from your association, then take them and your current declarations page to a licensed agency. The [Riskado agency directory](https://riskado.com/agencies/) lists insurance agencies across the US, and [your state insurance department (opens in a new tab)](https://content.naic.org/state-insurance-departments) can confirm an agent's license and your state's condo insurance rules.

### Terms used in this guide

Tap a term to see what it means.

**HO-6.** The unit-owners policy a condo owner buys for belongings, interior items, liability and loss assessment.

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- [Builders Risk Insurance for a Homeowner: Renovation or New Build, Who Buys It, and How Long It Lasts](https://riskado.com/builders-risk-insurance-for-homeowners/): Builders risk insurance covers a house while it is built or renovated. See who buys it, how it works with homeowners insurance, and when it starts and ends.

- [Home Warranty vs Home Insurance: What Each Covers and Whether You Need Both](https://riskado.com/home-warranty-vs-home-insurance/): A home warranty repairs listed appliances and systems; homeowners insurance pays for covered damage and liability. See what each covers, excludes and requires.

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- [Co-op Insurance in NYC: What the Building Covers, What You Need, and What Boards Require](https://riskado.com/co-op-insurance-nyc/): A NYC co-op shareholder usually needs an individual HO-6-style policy alongside the building's master policy. See what each covers, and what boards require.

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