What type of insurance should a unit owner have?
A condo unit owner should usually have a Condominium Unit Owners policy, commonly called an HO-6 policy.
That policy should typically include:
- Building property coverage for the interior parts of the unit the association does not insure, such as flooring, cabinets, drywall, fixtures, and upgrades
- Personal property coverage for furniture, clothing, electronics, and other belongings
- Personal liability coverage in case the owner is responsible for injury or property damage to others
- Loss assessment coverage in case the condo association charges unit owners for part of a covered loss
- Loss of use coverage for temporary living expenses if the unit cannot be lived in after a covered claim
They may also need or want:
- Flood insurance if flood is excluded and there is flood exposure
- Earthquake coverage in areas where that risk matters
- Umbrella liability for higher liability protection
- Coverage high enough to satisfy any mortgage lender requirements
The most important point is this: the HO-6 should be matched to the condo association's master policy and bylaws. Some associations insure only the bare walls, while others insure more. That determines how much interior coverage the unit owner needs.