The HO6 insurance policy is the most common type of policy used to insure homes and condominiums in the United States. It is commonly known as HO6 Condo Insurance or HO6 Townhome Insurance.
The HO6 is a named insurance policy. A named perils insurance policy specifically lists all the perils that the policy will insure. If an event damages or destroys property that is not included in the list of covered perils in the policy, the HO6 will not insure property damaged as a result of that particular event.
Dangers of the HO6 Insurance Policy
The following 16 perils are the risks that a standard HO6 insurance policy will insure :
- Fire or Lightning.
- Wind storm or hail.
- Riots or civil commotion.
- To smoke.
- Vandalism or malicious mischief.
- Volcanic eruption.
- Falling objects.
- Weight of ice, snow, or sleet.
- Accidental discharge or overflow of water or current.
- Sudden and accidental tearing, cracking, burning, or bulging.
- Sudden and accidental damage by artificially generated electric current.
Condo insurance is very similar to home insurance, but there are some areas where HO6 insurance deviates from coverage. The most notable differences are how home coverage and coverage for other structures are calculated. In both cases, the amount of insurance needed is much less for condo policies.
HO6 Coverage and Other Structures
The amount of Other Structures coverage in HO6 insurance is calculated similarly to homeowners coverage. The main difference is that the condominium owner will generally not have other structures that need coverage. Does this make sense?
When we really start to think about it, it makes quite a bit of sense. Is the condominium owner responsible for fixing the community mailbox if it breaks? Is he responsible for fixing the pool if it gets clogged? Are you responsible for fixing the roof of the clubhouse or even the roof of the building you share with four other owners? The answer to all these questions is no; condominium associations are responsible for dealing with all these situations. Due to the fact that most condo owners do not have outbuildings that they own directly, they generally do not have coverage for other structures.
The HO6 Insurance Policy is the only Policy Available to Condo Owners.
The only insurance limitation for condo and townhome owners is that they only have one insurance option; the ho6 insurance policy. Homeowners can choose from different degrees of coverage and different types of insurance policies; HO1, HO2, HO3, HO5, and so on. Unfortunately, the condo owner does not have the luxury that landlords do. If a condo owner doesn’t like the coverage that HO6 offers, he has very few other options. Despite this limitation, HO6 is an excellent insurance policy and is generally sufficient coverage for most of the condo owner’s needs.