Here's what catches most new condo owners off guard: when you buy a condo, you're not just buying your unit—you're buying into a shared insurance arrangement that probably doesn't protect you the way you think it does. Your condo association has a master policy that covers the building, sure. But what about your renovated kitchen? Your furniture? That laptop on your desk? The liability if someone gets hurt in your unit? That's all on you.
That's where HO-6 condo insurance comes in. It fills the critical gaps left by your association's master policy, protecting your personal property, liability, and often the interior structure of your unit. Let's break down exactly what the master policy doesn't cover—and why you need your own protection.
What Your Master Policy Actually Covers (And What It Doesn't)
Your condo association's master policy focuses on the building structure and common areas—things like the roof, exterior walls, hallways, elevators, and the pool. But here's where it gets tricky: there are three different types of master policies, and each one leaves different gaps that you'll need to fill.
A bare walls policy is the most basic. It covers only the structure behind your walls—the framing, wiring, plumbing, and insulation. Everything from the drywall inward is your responsibility. That means your flooring, cabinets, fixtures, paint, and any improvements you've made all need coverage from your HO-6 policy.
Single entity coverage is a step up. It includes standard fixtures like countertops, sinks, and built-in appliances that came with your unit originally. But here's the catch—it typically doesn't cover alterations or upgrades you've made. Installed custom cabinets or upgraded your bathroom? Those improvements aren't covered by the master policy.
All-in coverage is the most comprehensive master policy, covering the entire interior structure, fixtures, appliances, and even alterations. If your building has this type of policy, you may not need dwelling coverage on your HO-6 policy—but you'll still need personal property and liability protection.
The critical first step? Get a copy of your association's master policy and figure out which type you have. Don't assume—this document determines what you actually need to insure yourself.
The Big Gaps: What's Never Covered by the Master Policy
Regardless of which type of master policy your building has, there are certain things that are never covered. Understanding these gaps is crucial because they represent your biggest financial vulnerabilities as a condo owner.
Your personal property is entirely your responsibility. The master policy won't pay a dime to replace your furniture, electronics, clothing, or any other belongings if there's a fire, theft, or water damage. This is walls-in coverage in action—your HO-6 policy protects everything you own inside your unit.
Personal liability is another major gap. If someone slips and falls in your unit, or your dishwasher leaks and damages your neighbor's ceiling below, the master policy won't help you. You need your own liability coverage to protect against lawsuits and medical bills resulting from accidents in your unit. This protection is often the most valuable part of your HO-6 policy, even though most people focus on property coverage.
Master policy deductibles can create unexpected out-of-pocket expenses too. Many condo associations now carry policies with deductibles as high as $25,000. If there's a major claim on the master policy, the association may pass that deductible cost to individual owners through a special assessment. Without proper coverage, you could face a massive bill.
Certain disasters aren't covered by standard master policies either. Floods and earthquakes typically require separate insurance policies. If you're in a flood zone or earthquake-prone area, you'll need additional coverage beyond both the master policy and your standard HO-6 policy. Sewer backups are another common exclusion that can be added to your HO-6 policy for minimal cost.
Loss Assessment Coverage: Your Protection Against Special Assessments
This is the coverage most condo owners don't know they need until it's too late. Loss assessment coverage protects you when the condo association charges owners for repairs or claims that exceed the master policy's limits or deductible.
Here's how it works: imagine a hurricane damages your building's roof, resulting in a $500,000 repair bill. The master policy has a $100,000 deductible. The association divides that $100,000 among all unit owners—let's say that's $5,000 per unit. Loss assessment coverage on your HO-6 policy would cover your portion of that bill.
Most HO-6 policies include a minimal amount automatically—often just $1,000. But that's rarely enough. You can typically add coverage ranging from $10,000 to $100,000, and it's incredibly affordable. Adding $50,000 in loss assessment coverage usually costs less than $10 per year. In Florida, state law actually requires at least $2,000 in loss assessment coverage on all condo policies.
Given that master policy deductibles have been rising significantly in recent years, especially in areas prone to natural disasters, maxing out your loss assessment coverage is one of the smartest moves you can make. It's cheap insurance against a potentially devastating special assessment.
How Much Coverage Do You Actually Need?
The amount of dwelling coverage you need depends entirely on your association's master policy type. With a bare walls policy, you'll need enough coverage to rebuild everything from the drywall inward. With an all-in policy, you might skip dwelling coverage entirely and focus on personal property and liability.
For personal property, take a real inventory. Walk through your unit and add up what it would cost to replace everything you own—furniture, electronics, clothes, kitchenware, everything. Most people significantly underestimate this number. A single room can easily contain $20,000 or more in belongings.
Liability coverage typically starts at $100,000, but consider increasing it to $300,000 or $500,000. The cost difference is minimal, and given how expensive lawsuits and medical bills can be, higher limits provide important peace of mind. If you have significant assets, you might also consider an umbrella policy for even broader protection.
If you've made improvements or upgrades to your unit—new flooring, a renovated kitchen, custom built-ins—make sure these are factored into your coverage limits. Take photos and keep receipts. These betterments and improvements can add significant value that needs protection.
What Condo Insurance Costs in 2025
The good news: HO-6 policies are significantly cheaper than traditional homeowners insurance because the master policy handles the building structure. The national average for condo insurance ranges from about $455 to $656 per year—that's $38 to $55 per month.
That said, location matters enormously. If you're in a low-risk state like Wisconsin or Vermont, you might pay as little as $300 to $500 annually. But if you're in Florida, Texas, Louisiana, or another high-risk area for natural disasters, expect to pay $1,200 to $2,000 or more per year, especially in coastal areas or older buildings.
Your coverage limits, deductible, and the age and location of your building all affect your premium. Higher deductibles lower your premium but increase your out-of-pocket costs if you file a claim. Most condo owners find that a $500 or $1,000 deductible strikes the right balance.
Shopping around makes a huge difference. State Farm tends to offer some of the most competitive rates for condo insurance, with an average of around $441 per year. But rates vary significantly between insurers, so it's worth getting quotes from at least three companies.
Getting Started: What to Do Now
If you have a mortgage, your lender almost certainly requires condo insurance. But even if you own your unit free and clear, going without coverage is a massive financial risk. One fire, one liability claim, or one special assessment could wipe out your savings.
Start by getting a copy of your condo association's master policy from your HOA board or property manager. Identify which type of coverage it provides. This single document determines everything else about what you need.
Next, inventory your belongings and calculate what you'd need to replace them. Don't forget to account for any improvements or upgrades you've made to your unit. Take photos and keep documentation—this will be invaluable if you ever need to file a claim.
When you get quotes, make sure to ask specifically about loss assessment coverage limits and costs. For a few extra dollars per year, you can protect yourself against potentially devastating special assessments. It's one of the most overlooked but valuable parts of an HO-6 policy.
Finally, review your policy annually. As you make improvements to your unit or acquire new belongings, make sure your coverage keeps pace. The worst time to discover you're underinsured is after a loss. A few minutes of review each year can save you from financial disaster down the road.
