ANSWER
For a condo, you usually need the HOA’s master property policy plus your own HO-6 unit owner policy, and flood coverage is separate if flood insurance is required or you want protection for flood damage. The exact mix depends on what the condo documents and lender require.
YOUR NEXT DECISION
Turn the answer into your next step
- Ask the HOA for the master property policy and any master flood policy.
- Buy an HO-6 policy that fills the gap left by the master policy.
- Verify the per-unit deductible and make sure your coverage matches lender requirements.
- Check separately whether flood insurance is required or advisable for the condo.
What the condo association should carry
The association typically insures the building and common elements through a master property policy. For condo projects, Fannie Mae says the HOA’s policy must cover the common elements and residential structures, and it may also need to cover fixtures, improvements, alterations, and equipment within units depending on the project documents.
- A condominium homeowners association policy is the starting point for the building itself.
- If the master policy does not cover all or part of the interior or improvements, the unit owner needs an HO-6 policy.
- If the HOA policy has a per-unit deductible, the lender can require you to document HO-6 coverage that is at least enough to cover that deductible.
What you should carry as the unit owner
As the condo owner, you generally need an HO-6 unit owner policy for the parts the HOA policy does not cover, and that policy must be strong enough to repair the unit to its pre-loss condition or cover the per-unit deductible, whichever is greater. Fannie Mae also says the HO-6 must include the standard mortgage clause when it is required.
- This is the policy for your unit interior and any gaps left by the master policy.
- The HO-6 coverage limit must be at least the greater of the cost to restore the unit or the per-unit deductible.
- If your lender requires it, the HO-6 must include the standard mortgage clause.
Flood coverage is separate
Flood damage is typically excluded from standard homeowners and renters insurance in Massachusetts, so flood coverage usually has to be purchased separately through the National Flood Insurance Program or a private flood insurer. In many condo buildings, the association buys a master flood policy for the building, but that usually does not protect your belongings inside the unit.
- Check whether the HOA carries a master flood policy and what it covers.
- Your personal belongings are usually not covered by the association’s flood policy.
- If needed, ask about a contents-only flood policy for your unit.
What to verify before closing or renewing
Ask for the condo association’s insurance documents and confirm what the master policy covers, what the deductible is, and whether the lender wants proof of your HO-6 policy. Fannie Mae says lenders verify at least annually that the insurer, policy amount, and type of coverage meet its requirements.
- Get the HOA declaration page and condo documents before you bind your policy.
- Confirm whether the master policy covers interiors, improvements, or only the building shell and common areas.
- If the condo is in a flood zone or flood insurance is otherwise required, confirm the HOA master flood policy or your own flood policy separately.
Sources
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