Recommended Insurance Limits
A solid starting point for a condo unit owner is:
Recommended HO-6 structure
| Coverage | What to aim for | Typical range / notes |
|---|---|---|
| Dwelling / building property | Enough to cover what the association does not insure inside the unit | Common starting range: $25,000 to $100,000+. Higher if the unit has upgraded kitchens, custom flooring, built-ins, or better finishes. |
| Personal property | Based on the value of contents | Common starting range: $30,000 to $75,000+ |
| Personal liability | At least $300,000 | $500,000 is often a stronger recommendation when available and affordable |
| Medical payments to others | $1,000 to $5,000 | |
| Loss assessment | At least $25,000 | $50,000 or more is better for many condo associations, especially with larger shared exposures |
| Loss of use | Enough for temporary housing after a covered loss | |
| Deductible | Choose an amount the owner can comfortably absorb, often $500, $1,000, or $2,500 | |
Best-practice recommendation
For many condo owners, a very reasonable baseline is:
| Area | Baseline |
|---|---|
| Building property | Based on association bylaws and interior finish responsibility |
| Personal property | Replacement cost |
| Liability | $300,000 to $500,000 |
| Loss assessment | $25,000 to $50,000 minimum |
Important coverage details
- Add replacement cost on contents if possible
- Review whether the association master policy is bare walls, single entity, or all-in
- Make sure the unit owner policy can help with the association's master policy deductible if a loss is pushed back to the owner
- Consider water backup, ordinance or law
- Consider a personal umbrella if the client has significant assets
We usually recommend an HO-6 condo policy with enough coverage for interior improvements, personal property, at least $300,000 in liability, and strong loss assessment protection in case the association passes along part of a claim.