Understanding HO-6 Insurance For The New Condo Or Co-Op Buyer
Posted by Legacy Insurance Group on
If you are interested to purchase a Condo in Northern VA or Co-Op In The Washington DC Metro area, read below for helpful tips on what you need to know about condo insurance:
What is HO-6 Insurance?
1) HO-6 Insurance refers to an industry-wide insurance form that covers Condominium & Co-Op units in a way that complements the Master Insurance Policy purchased by the Condo Association, which Unit Owners pay into through their HOA dues. The Master Insurance Policy, generally covers the main building’s exterior Each policy is different, so make sure you read the specifics to have a full understanding when you move into your new community. Your responsibility as the unit owner is to cover the interior of the unit including the framing, drywall, cabinets, counter tops, fixtures, carpet, tile, etc
Is Condo Insurance Different Than Home Insurance?
2) Condo Insurance is very similar to renter’s insurance except for the Dwelling coverage which covers the Unit owner’s share of the Unit. Other than that, the policy will function very similarly in providing coverage for Personal Property, Liability to other units, Medical Expenses for guests of the premises. Condo insurance is very different from home insurance in the sense that condo insurance covers the unit owner’s responsibility to cover the interior or “walls-in” while home insurance covers not only the interior of the home but the complete rebuild of the exterior as well.
How Much Condo Insurance Do You Need?
3) Your lender will typically recommend 20% of the sales price of your Condo Unit, but the average condo carries about $60,000 in coverage. This will differ based on the square foot of the unit, so it is recommended you speak with your local agent or insurance broker to have a professional consultation about your new purchase and many more details you should know. Depending on what part of the country you are purchasing a condo, the general rule of thumb of 20% may not apply. You should speak with your insurance agent in detail about the quality of the fixtures inside your condo unit as well as the livable square feet so they can customize your insurance for you.
Learn more about Condo Insurance by calling us at 703-430-1200 and speaking with an insurance expert!