HO-6 Condo Insurance Explained — What Your Master Policy Doesn't Cover

TL;DR: HO-6 insurance (also called walls-in coverage) protects condo owners for everything the association's master policy excludes — typically your unit's interior, personal belongings, liability, and your portion of a special assessment if a covered loss exceeds the master policy limits. Coverage needs depend on whether your association carries bare-walls or all-in master coverage.

_Last reviewed: July 2026 · 6 min read_

When you own a condo, two insurance policies cover the building and your unit: the association's master policy and your individual HO-6 policy. The master policy covers the building structure and common areas; the HO-6 covers what the master policy doesn't. Confusion about where one stops and the other starts is the most common reason condo owners end up underinsured after a fire, flood, or major storm.

Okoniq Property Hub lets you store both your HO-6 declarations page and the association's master policy summary in one place, so you can compare coverage limits and deductibles before a claim happens.

What does HO-6 insurance cover that the master policy doesn't?

HO-6 insurance covers everything inside the walls of your unit, your personal property, personal liability, and loss-of-use expenses if your unit becomes uninhabitable. The exact boundary between master policy and HO-6 depends on the association's coverage type — either bare-walls or all-in (sometimes called single-entity vs. all-in).

Under bare-walls coverage, the master policy stops at the drywall. You're responsible for insuring flooring, cabinets, countertops, built-in appliances, paint, fixtures, and any improvements you've made. Under all-in coverage, the association's master policy includes original fixtures and finishes as they were installed by the developer, but you still need HO-6 to cover upgrades, betterments, personal property, and liability.

Most associations carry bare-walls coverage, which means your HO-6 dwelling coverage limit needs to be high enough to rebuild everything from the studs in. If your kitchen has $30,000 in cabinets and your bathroom has custom tile worth $8,000, your dwelling coverage should reflect those replacement costs. The HOA master insurance policy basics article explains how to read your association's master policy and identify which coverage model applies.

HO-6 policies also include personal liability coverage (typically $100,000 to $500,000) if someone is injured inside your unit or if you cause damage to a neighbor's unit — for example, if your washing machine hose fails and floods the unit below. Personal property coverage protects your furniture, electronics, clothing, and other belongings up to the policy limit, minus the deductible.

How do you know what the master policy covers?

Request a certificate of insurance and the master policy declarations page from your property manager or board. These documents list the policy type (bare-walls or all-in), the per-occurrence limit, the deductible, and what building components are included. Most associations provide this during the purchase process as part of the HOA resale certificate, but you should review it annually in case the board changes carriers or coverage.

The certificate will include a section labeled "building property coverage" or "real property coverage" with a total insured value. Compare that number to the association's reserve study replacement-cost estimate for all buildings. If the master policy limit is significantly lower than the estimated replacement cost, the association is underinsured — and that gap can trigger a special assessment after a major loss.

Check the master policy deductible as well. In coastal areas or regions with high hurricane or earthquake risk, master policy deductibles often run $25,000 to $100,000 or more. If a covered loss occurs, the association may levy a special assessment to cover that deductible before insurance pays. Your HO-6 policy can include loss-assessment coverage to pay your share.

What is the right dwelling coverage limit for an HO-6 policy?

The dwelling coverage limit (Coverage A) on your HO-6 should equal the replacement cost of everything inside your unit that isn't covered by the master policy. For bare-walls associations, that includes all interior walls, flooring, cabinetry, countertops, fixtures, built-in appliances, and any structural or cosmetic improvements you've made. For all-in associations, it should cover upgrades and betterments above the developer's original finishes.

To calculate the right limit, walk through your unit and estimate replacement costs for each component. Hardwood flooring costs $8 to $15 per square foot installed; kitchen cabinets range from $150 to $500 per linear foot; quartz countertops run $60 to $120 per square foot. Add those numbers together, then add 10% to 20% as a buffer for labor cost increases and permit fees. A typical two-bedroom condo in a bare-walls building may need $50,000 to $100,000 in dwelling coverage; larger units or units with high-end finishes may need $150,000 or more.

If you've made capital improvements — installing new HVAC, replacing windows, adding built-ins — document those costs and increase your dwelling limit to match. Your insurer won't know about improvements unless you tell them. Keep receipts and photos in the same folder where you store your HO-6 declarations page and master policy summary; Okoniq Property Hub makes it easy to attach photos and PDFs to a single property record.

Why does loss-assessment coverage matter?

Loss-assessment coverage (Coverage B or an endorsement) pays your share of a special assessment levied by the association to cover a gap between a covered loss and the master policy limit or to cover the master policy deductible. If a fire destroys the building and the master policy has a $50,000 deductible, the board may assess each owner $2,500 (assuming 20 units). Loss-assessment coverage would pay that $2,500 on your behalf, up to the policy limit.

Most HO-6 policies include $1,000 of loss-assessment coverage by default, but that's rarely enough. A $50,000 master deductible spread across 20 units is $2,500 per unit; a $100,000 deductible is $5,000 per unit. Coastal associations with hurricane or flood exposure may carry deductibles of $250,000 or more, especially if the building is in a high-risk flood zone. Request loss-assessment coverage equal to your share of the master policy deductible plus 20% as a buffer.

Check whether the master policy includes an assessment clause or a deductible-reimbursement provision. Some master policies automatically bill the association's insurer for the deductible after a covered loss, then the insurer assesses unit owners. In those cases, your HO-6 loss-assessment coverage should match the maximum per-unit deductible listed in the master policy. The HOA board transition checklist includes a section on documenting insurance policies and deductibles when leadership changes, so new board members know what owners should carry.

Should your HO-6 deductible match the master policy deductible?

Your HO-6 deductible should align with the master policy deductible to prevent a gap where neither policy pays. If the master deductible is $25,000 and your HO-6 deductible is $1,000, you're covered. But if the master deductible is $1,000 and your HO-6 deductible is $5,000, you could end up in a situation where both policies deny a claim because the loss falls between the two deductibles.

Most HO-6 policies offer deductibles ranging from $500 to $5,000. A $1,000 deductible is the most common choice and keeps premiums manageable while covering most interior losses. If you choose a higher deductible to lower your premium, confirm that the master policy deductible is equal to or higher than your HO-6 deductible. If the master deductible is lower, you risk a coverage gap.

Store a copy of your HO-6 declarations page and the master policy certificate in the same folder. When the association changes carriers or adjusts coverage, compare the new master deductible to your HO-6 deductible and adjust if needed. Associations are required to maintain certain records under state law; the HOA record-keeping requirements article explains what documents must be available to owners and for how long.

FAQ

Is HO-6 insurance required by the association?

Most associations require unit owners to carry HO-6 insurance and to provide proof of coverage annually or at closing. The governing documents (CC&Rs or bylaws) typically specify minimum coverage limits for dwelling, liability, and loss assessment. Check your association's rules and compare them to your current policy limits.

Does HO-6 cover water damage from a neighbor's unit?

HO-6 liability coverage pays for damage you cause to a neighbor's unit, such as a leak from your plumbing. Your own dwelling and personal property coverage pays for damage to your unit caused by a neighbor's leak, subject to your deductible. The neighbor's HO-6 liability coverage should reimburse you, but your policy pays first so you're not waiting months for their insurer.

Can you get HO-6 if you rent out your condo?

Yes, but you need to add a landlord or rental-dwelling endorsement. Standard HO-6 policies assume owner-occupancy and exclude certain liability and loss-of-use coverages when the unit is rented. Some insurers offer a separate landlord policy (DP-3) for rental condos; others add an endorsement to the HO-6. Associations may restrict rentals; the HOA rental restrictions basics article covers common rental caps and approval processes.

What happens if the association is underinsured?

If the master policy limit is lower than the building's replacement cost and a total loss occurs, the insurer pays up to the policy limit and the association levies a special assessment to cover the gap. Your HO-6 loss-assessment coverage would pay your share of that assessment, up to your policy limit. If the assessment exceeds your loss-assessment limit, you pay the difference out of pocket. This is why reviewing the association's reserve study and master policy limits matters; the HOA reserves underfunded article explains how to spot underinsurance before a loss.

This is educational information, not legal or insurance advice. Consult your insurance agent and your association's governing documents to confirm coverage requirements and limits.