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Condo insurance (HO-6): where the association’s policy stops and yours starts

Condo owners in the Pointes and the Shores often assume the association’s insurance covers the building, so they need almost nothing. Sometimes that is true. Often the master policy stops at the drywall, and everything inside — cabinets, floors, fixtures — is yours to insure.

Read the master policy first

Every association carries a master policy, and its language decides what your HO-6 needs to cover. “Bare walls” means the association covers the structure and common areas only; you insure everything inside the unit. “Single entity” or “all-in” means the association also covers built-in fixtures as originally built; you insure improvements and your belongings. Ask the association for the certificate and the relevant bylaws section before your review — it changes the dwelling limit on your policy by tens of thousands of dollars.

Loss assessment

When the association has a loss that exceeds its coverage or falls within its deductible, it can assess unit owners for the shortfall. Loss assessment coverage on your HO-6 pays your share, up to a limit. Master-policy deductibles have climbed in recent years, particularly for water and roof losses; ask what the association’s deductible is and size your loss assessment coverage to it.

Water, again

Water backup and sudden pipe failures behave the same way in a condo as in a house, with one twist: damage often crosses unit lines. Your HO-6 should carry water backup, and it is worth knowing how the association handles a leak from the unit above before it happens.

Liability and belongings

Personal liability on an HO-6 works like it does on a homeowners policy. Belongings are covered at a limit you choose; scheduled items (jewelry, art) need their own line. If you rent the unit out, that is a different policy — see the landlord guide.

This guide is general information about insurance in Michigan, not advice about a specific policy. Coverage depends on the policy’s terms, limits, exclusions and eligibility, and a request does not bind or change insurance.

Common questions

People also ask.

The association says its policy covers everything. Do I still need HO-6?

Almost always yes — for your belongings, your liability, loss assessment, and any improvements you have made. Lenders usually require it as well.

What is a typical loss assessment limit?

Policies often include a small default; raising it to match the association’s deductible — commonly $10,000 to $50,000 today — is inexpensive.

Who insures the windows and the balcony?

It depends on the bylaws. Bring them to the review and Carly will map each item to the right policy.

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