HO-6 condominium insurance is similar to other homeowners' insurance policies, although it includes coverage for condominium-related issues, according to the Massachusetts Real Estate Law Blog. HO-6 policies cover damage to personal property, personal liability, interior walls and floor coverings, and improvements made to units.
HO-6 condo insurance covers the gaps in coverage from master insurance policies, explains the Massachusetts Real Estate Law Blog. Generally, master insurance policies only provide coverage for common spaces within condominium buildings, such as hallways, basements, walkways and elevators. Unlike HO-6 policies, they do not cover damage within individual units. HO-6 policies also have far lower deductibles.
Mortgage lenders usually require that borrowers obtain HO-6 policies prior to purchasing their condominiums, according to SFGate. The most basic policy, which has less coverage, is known as "bare walls-in." This policy only covers the unit's structure, but it does not cover any additional fixtures, such as sinks, appliances and other fixtures. The next level of coverage is "all in," which covers all fixtures and improvements made to the condominium; however, it still may not cover valuable personal property within the condominium. Mortgage lenders usually require HO-6 insurance coverage to be at least 20 percent of the unit's value.