ANSWER
For a condo, you usually need your own HO-6 condo policy, while the association carries a master policy for the building and common areas. In Chicago, condo insurance is not required by law, but your HOA or mortgage lender may require it.
YOUR NEXT DECISION
Turn the answer into your next step
- Confirm whether the building uses a bare-walls or all-in master policy.
- Ask the HOA what unit-owner insurance, if any, is required.
- Collect written quotes from multiple insurers.
- Check whether your mortgage lender requires HO-6 coverage.
- Compare deductibles, coverage limits, and loss-assessment protection.
What you need for your unit
Buy an HO-6 policy for your condo unit. It’s the policy that fills the gaps left by the association’s master policy, covering your interior finishes if needed, personal property, personal liability, and often loss assessment. Fannie Mae says the master policy for condo projects is primary, and a unit owner may have other insurance on the same property.
- Typical HO-6 protection includes interior improvements, belongings, liability, loss of use, and loss assessment.
- If your association uses a bare-walls policy, you may need more interior coverage than if it uses an all-in policy.
- Check your HOA documents before buying, because the master policy determines where your coverage should start.
What the condo association covers
The condo association’s master policy usually covers the building structure and common areas. Illinois condo guidance says the master policy and HO-6 policy split the job between shared property and your individual unit.
- Fannie Mae requires condo master policies to include condominium-association coverage language and be primary.
- Illinois guidance says associations commonly carry the master policy, while unit owners carry HO-6 coverage.
- Your HOA’s governing documents control what’s shared and what’s yours.
What to do next
Get quotes from several insurers in writing and compare both price and coverage limits. CFPB also says to compare how the premium changes if you raise or lower the deductible, then confirm with your HOA and lender whether they require specific coverage levels.
- Ask your HOA for the master policy type and any required unit-owner coverage.
- Ask your lender whether HO-6 coverage is required for closing or ongoing loan compliance.
- Make sure your policy matches the condo’s governing documents, not just a generic condo template.
Sources
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