Claim scenarios for unit owners
A unit owner's HO-6 policy can respond to many kinds of property and liability losses. Common claim scenarios include:
Water damage
A washing machine hose, dishwasher line, or pipe bursts, or a toilet/tub overflows, causing damage to flooring, drywall, cabinets, and personal property. Water may also spread into neighboring units.
Sewer or drain backup
Sewer or drain backups can cause damage to flooring, furniture, and drywall and may require additional coverage or endorsements depending on the policy.
Fire and smoke damage
A cooking fire, candle, space heater, or electrical issue starts a fire that damages cabinets, appliances, and interior finishes. Smoke can contaminate the entire unit, and the fire may spread to neighboring units, creating additional liability.
Personal property loss
The condo is broken into and valuables like electronics, jewelry, and personal belongings are stolen. Storm-related openings or association-covered losses can still leave the owner responsible for damage to furniture, clothing, and other contents inside the unit.
Liability claims
A guest slips on a wet floor or trips and is injured inside the unit. A dog bites a visitor, delivery driver, or neighbor. An item falls from a balcony and causes injury or property damage below. The unit owner may be held responsible for damages.
HOA assessments and master policy deductible
After a major loss, the association may assess unit owners for a portion of the master policy deductible or uninsured damage. If a loss originates in a specific unit, that owner may be charged back for a significant deductible.
Improvements and betterments
The unit owner upgrades flooring, cabinets, or fixtures, and a covered loss damages those improvements. The association policy may not cover upgraded features, leaving the owner responsible.
Temporary living expenses
After a covered loss like a fire or major water damage, the unit becomes uninhabitable and the owner needs coverage for hotel stays, rent, and additional living expenses.