Do I need an HO-6 Policy When Buying a Condo?

HO6 Insurance Policy

When buying a condo, there are many decisions to make.  Most buyers spend a huge amount of time searching for the perfect location and the perfect amenities, but often fail to think about protecting their investment with the correct insurance policy.  The truth is, not all insurance policies are created equally and this is especially true when buying a condo.  An HO-6 policy is crucial to ensuring your investment remains protected and will give you peace of mind so that you can enjoy your new condominium.

 What is an HO-6 Insurance Policy?

When buying a condo it is important for buyers to read the fine print.  Most condo associations provide a master policy that covers the structure of the building.  A large majority of the time, these policies insure the entire structure against things like roof damage, storm damage or other large scale issues, such as a fire.  However, many times, these master policies do not cover the interior of individual units, which then falls to the responsibility of the individual owners.  This is where an HO-6 policy kicks in.  An HO6 insurance policy will cover the inside of your unit, (the walls, the flooring, the ceiling etc.), but is limited to your dwelling.  An example of this would be a bathtub that overflows and causes damage to the drywall or the floors.  Additionally, many HO-6 policies insure against theft or vandalism.  Some condo associations do provide master coverage that is all encompassing, so it is important to read the fine print so you know exactly what is and is not covered when buying a condo.

Do I Really Need an HO-6 Policy?

Usually, the answer here is yes.  Even if the master policy governing the building as a whole covers the interior of your unit, it will not usually cover your personal belongings.  Because most HO6 policies are very affordable it just makes sense for an owner to ensure that they have protected the contents of their home.  Additionally, an HO-6 policy is great peace of mind for owners, who know that if disaster strikes, they will be able to restore their home and its contents to tip top shape, should a loss occur.

An HO6 policy is for YOUR protection.

Of course, every situation is unique, and a careful read through of all documents pertaining to your condo and the association’s master policy can go a long way toward determining your insurance needs when buying a condo.  It’s true that living in a condo is all about sharing; sharing a roof, sharing walls, sharing a pool etc…but when it comes to insurance, sharing isn’t always the best option.  An HO-6 insurance policy will allow you to enjoy your new home for years to come without worrying about unexpected losses.

Here are some other great buyer tips you will find helpful such as:  home inspection advice and tax saving tips.

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