Here's something that confuses nearly every first-time condo buyer in New York: you already pay into your condo association's insurance through your monthly fees, so why do you need your own policy? The short answer is that the master policy protects the building and common areas, but it leaves massive gaps in coverage for what's inside your four walls. If your kitchen floods and ruins your neighbor's ceiling below, or if someone slips in your entryway and breaks an ankle, you're personally on the hook—potentially for tens of thousands of dollars.
New York condo insurance, technically called an HO-6 policy, bridges the gap between what your association covers and what you actually need. Whether you own a studio in Brooklyn or a penthouse in Manhattan, understanding how these two insurance layers work together can save you from financial disaster and help you avoid paying for duplicate coverage you don't need.
What Your Condo Association's Master Policy Actually Covers
Every condo association in New York carries a master insurance policy that covers the building's structure and common areas—think lobbies, elevators, the roof, exterior walls, hallways, the gym, and the pool. This policy also provides liability coverage if someone gets injured in these shared spaces. Your monthly condo fees pay for this coverage, so you're already contributing to it.
But here's where it gets tricky: not all master policies are created equal. There are three types, and understanding which one your building has is crucial for knowing what gaps you need to fill with your personal policy.
Bare walls coverage is the most basic. It covers the building structure up to the drywall—the framing, insulation, piping behind the walls, wiring, and the drywall itself. Everything else inside your unit is your responsibility.
Single entity coverage is the middle ground. It includes everything in bare walls coverage plus the original fixtures and finishes that came with your unit when it was built—things like cabinets, flooring, light fixtures, and appliances that were installed by the developer.
All-in coverage is the most comprehensive master policy. It covers everything in the single entity policy plus any improvements or upgrades you've made to your unit. This is the rarest type of master policy you'll find in New York.
Your first step when buying condo insurance is to get a copy of your association's master policy and bylaws from your property manager or board. Look for the section that describes the coverage type. This document will tell you exactly where the association's responsibility ends and yours begins.
The Critical Coverage Gaps Your HO-6 Policy Must Fill
Even the most generous master policy doesn't cover everything you need. Your personal HO-6 condo insurance fills four major gaps that could otherwise leave you financially exposed.
First, your personal belongings are never covered by the master policy. Your furniture, clothing, electronics, jewelry, artwork—all of it needs coverage through your HO-6 policy. If a fire destroys your unit or a burst pipe ruins everything you own, the association's insurance won't replace any of it.
Second, improvements and betterments you've made need their own coverage. If you renovated your kitchen with custom cabinets and quartz countertops, or replaced the builder-grade laminate floors with hardwood, those upgrades aren't covered by most master policies. You need to add the replacement cost of these improvements to your HO-6 policy.
Third—and this is huge for New York condo owners—liability coverage within your unit is your responsibility. If someone slips and falls in your apartment, or if your bathtub overflows and causes water damage to the unit below, your personal liability coverage handles it. Most New York condo and co-op boards require residents to carry between $300,000 and $500,000 in liability coverage, and for good reason: water damage claims are the most common type of claim in NYC buildings. An overflowing toilet can easily cause $50,000 in damage to a downstairs neighbor's unit, and without adequate liability coverage, you're paying out of pocket.
Here's something most condo owners don't know: bumping your liability coverage from the standard $100,000 to $1 million costs only about $70 more per year. Given the potential costs of water damage in NYC, this is one of the best values in insurance.
Fourth, loss assessment coverage protects you from special assessments levied by your condo board. When the association's master policy doesn't fully cover a major loss—say, a devastating fire or a catastrophic roof collapse—the board can charge unit owners to cover the shortfall. After a 2019 fire in a Sunset Park condominium, unit owners faced potential assessments when the board's $8.2 million in property coverage proved inadequate. Most HO-6 policies include only $1,000 in loss assessment coverage by default, but you can and should increase this to at least $10,000 to $50,000 depending on your building's size and value.
Co-op vs. Condo Insurance: What's Different in New York
If you're shopping for a place in New York City, you've probably noticed that co-ops outnumber condos by a significant margin. While both co-ops and condos use the same type of personal insurance policy (an HO-6), there are some important differences in how ownership works that affect your insurance needs.
When you buy a condo, you own your specific unit. When you buy a co-op, you're actually buying shares in a corporation that owns the building, and you get a proprietary lease that lets you occupy a specific unit. This distinction matters for insurance because condo owners technically own real property, while co-op owners own personal property (the shares).
For co-ops, your insurance needs are somewhat simpler. You're insuring your personal property and improvements more like a renter would, since the corporation owns the structure. Banks and lenders are usually satisfied with simply being added to the building's master policy as an interested party.
For condos, lenders are stricter. They typically require you to insure the interior structure of your unit—the walls, floors, ceilings, and built-in renovations—for at least 20 percent of your loan value. This is on top of coverage for your personal belongings.
Both co-ops and condos face the same liability risks, especially water damage between units. Whether you own shares in a co-op or a condo unit outright, you need robust liability coverage and should strongly consider enhanced loss assessment protection.
What New York Condo Insurance Costs and How to Save
The average cost of condo insurance in New York ranges from $553 to $622 per year, or about $46 to $52 per month. That's considerably less expensive than a typical homeowners policy, which averages over $3,000 annually in New York, because you're not insuring the entire building structure.
Your actual premium depends on several factors: the value of your personal property, the amount of coverage you choose for interior improvements, your liability limits, your deductible, and your building's location and claims history. A studio in the Bronx will cost significantly less to insure than a two-bedroom in a luxury Manhattan high-rise.
Between 2021 and 2024, homeowners insurance premiums in New York increased by 13 percent, with similar trends affecting condo policies. Rising construction costs, increasing water damage claims from aging infrastructure and changing weather patterns, and higher property values have all contributed to these increases.
You can reduce your premium by choosing a higher deductible, bundling your condo insurance with auto insurance, installing security systems or smart water leak detectors, and maintaining a claims-free history. Some insurers also offer discounts for paying your annual premium upfront instead of monthly.
How to Get the Right Coverage for Your New York Condo
Start by requesting a copy of your condo association's master policy, bylaws, and declaration from your property manager or board. Read through the coverage section carefully to understand whether you have bare walls, single entity, or all-in coverage. This tells you exactly what you need to insure personally.
Next, create a home inventory of your personal belongings. Walk through each room and photograph everything of value. Estimate the replacement cost of your furniture, electronics, clothing, and other possessions. This helps you determine how much personal property coverage you need—and provides documentation if you ever need to file a claim.
Calculate the replacement cost of any improvements you've made to your unit. If you've renovated, keep receipts and documentation of what you spent. This amount should be added to your dwelling coverage.
Check your association's insurance requirements. Most New York buildings mandate minimum liability coverage of $300,000 to $500,000. Don't just meet the minimum—consider increasing to $1 million for about $70 more per year. The protection is worth far more than the cost.
Increase your loss assessment coverage from the standard $1,000 to at least $10,000, or higher if you're in a large or luxury building. The cost is minimal, but the protection can save you from devastating special assessments if the master policy falls short.
Get quotes from at least three insurers. Rates can vary significantly between companies for identical coverage. Compare not just the premium but also the coverage limits, deductibles, and any exclusions or limitations in the policies.
Consider additional endorsements based on your situation. If you have expensive jewelry, artwork, or collectibles, you may need scheduled personal property coverage for items that exceed standard policy limits. If you're in a flood-prone area near the coast or a waterway, you'll need separate flood insurance since standard condo policies exclude flood damage.
Condo insurance isn't the most exciting purchase you'll make as a homeowner, but it's one of the most important. The right HO-6 policy protects you from financial catastrophe and gives you peace of mind knowing that you're covered for the gaps the master policy leaves behind. Take the time to understand your building's coverage, assess your personal insurance needs, and shop around for the best combination of coverage and price. Your future self will thank you.
