Does Progressive offer HO6?
Yes, Progressive offers HO-6 insurance, which is commonly known as condo or co-op insurance.
What Progressive HO-6 Insurance Covers
- Dwelling coverage: Protects the interior structure of your unit from the drywall inward, including built-in fixtures, flooring, and cabinets.
- Personal property: Covers your personal belongings (such as furniture, clothing, and electronics) against covered perils like fire or theft.
- Personal liability: Pays for damages, legal fees, or medical bills if you are responsible for someone's injury or property damage.
- Loss of use: Helps pay for temporary living costs if a covered event forces you out of your condo.
- Loss assessment: An optional or included add-on that helps pay for shared property damage or claims exceeding your association's master policy limit.
You can learn more details or request a custom policy directly through Progressive Condo Insurance.
What is the average cost of HO6 insurance?
The average cost of HO-6 (condo) insurance in the United States ranges from about $510 to $531 per year (roughly $43 to $44 a month) for standard coverage limits, though some comprehensive tier averages scale closer to $800 annually.
Cost Variations by State
HO-6 insurance rates change significantly depending on your location and regional weather risks:
- Highest-cost states: Florida ($1,035–$1,049+ per year) and states prone to severe weather like Texas, Arizona, and Louisiana.
- Lowest-cost states: Wisconsin ($276 per year), Vermont, and Wyoming.
What an HO-6 Policy Covers
An HO-6 Condo Insurance Guide typically protects "walls-in":
- Dwelling interior: Improvements, updates, and interior walls, floors, and fixtures not covered by your HOA's master policy.
- Personal property: Your furniture, clothing, electronics, and belongings.
- Personal liability: Legal responsibility if someone is hurt in your unit.
- Loss of use: Extra living costs if your condo becomes unlivable due to a covered claim.
- Loss assessment: Your share of sudden, unexpected building or common-area assessments.
Key Factors Affecting Your Rate
- Coverage limits: Higher personal property or liability limits increase your premium.
- Deductible amount: Choosing a higher deductible (e.g., $2,500 instead of $1,000) lowers your monthly or annual cost.
- HOA Master Policy type: Whether your association has a bare-walls, single-entity, or all-in policy dictates how much interior dwelling coverage you must buy yourself.
- Claims history: Past claims on your record or for the property can drive rates up.
Who qualifies for an HO6 policy?
An HO-6 policy qualifies for and is designed for condominium and cooperative (co-op) unit owners, as well as certain townhome owners whose building structures and common areas are managed by an association.
Who Needs or Qualifies for an HO-6 Policy?
- Condo Owners: Individuals who own the interior space of an individual condo unit within a larger building or complex.
- Co-op Owners: People who own shares in a cooperative housing corporation paired with a proprietary lease to their specific unit.
- Townhome Owners: Property owners whose community bylaws dictate that the association covers the exterior/roof via a master policy, leaving the interior structure to the owner.
- Mortgage Borrowers: Buyers who are financing a condo unit; mortgage lenders almost universally require an HO-6 policy in order to close on the loan.
- Landlords/Investors: Owners who purchase a condo unit to rent out to tenants (though the tenant needs a separate HO-4 renter's policy for their personal belongings).
Why an HO-6 Policy is Necessary
Unlike standard single-family homeowners insurance (an HO-3 policy) which covers the entire standalone structure, an HO-6 policy works in tandem with your HOA's master policy. The association’s master policy covers the exterior, roof, and shared common areas, while the HO-6 policy covers:
- The interior dwelling: Drywall, flooring, built-in appliances, and upgrades from the "walls-in".
- Personal property: Furniture, electronics, and clothing.
- Personal liability: Legal responsibility if someone is injured inside your unit.
- Loss assessment: Special levies charged by the HOA for damage to shared property.
Is HO6 insurance cheaper?
Yes, an HO-6 condo insurance policy is generally much cheaper than a standard single-family homeowners policy (HO-3).
Cost Comparison
- HO-6 Condo Insurance: The U.S. national average ranges between $445 and $572 per year.
- Standard Homeowners (HO-3): The national average is much higher, often ranging from $1,500 to over $2,100 per year.
Why HO-6 is Cheaper
- Less Structure Coverage: An HO-6 policy only covers the interior of your unit (walls-in, floors, and fixtures).
- Master Policies: Your condo association's master policy pays to repair the building exterior, roof, and shared common areas.
- Homeowners Insurance: An HO-3 policy must cover the entire physical structure of a standalone building and the surrounding property, leading to higher rates.
Learn more about protection options and averages in the NerdWallet Condo Insurance Guide or compare choices through CNBC Select.
Does Progressive Insurance offer condo insurance?
Yes, Progressive offers condo insurance (also known as HO-6 insurance) in most states.
What Progressive Condo Insurance Covers
- Dwelling: Covers the interior structure of your unit from the drywall in (such as flooring, cabinets, and fixtures) against covered perils like fire or windstorms.
- Personal Property: Protects your personal belongings like clothing, furniture, and electronics up to your policy limits.
- Personal Liability: Helps cover legal costs or medical bills if someone is injured or their property is damaged inside your unit.
- Loss of Use: Pays for temporary living expenses (like a hotel or meals) if a covered event forces you to temporarily leave your home.
- Loss Assessment: An optional add-on that helps pay for damage or accidents in shared building areas if costs exceed the association's master policy limit.
Key Features and Bundling
- Bundling: You can bundle your condo policy with Progressive Auto Insurance to earn a multi-policy discount.
- Single Deductible: If you bundle your auto and condo policies through Progressive's network (underwritten via ASI), a single event causing damage to both your car and belongings only requires you to pay one deductible.
- Quotes: You can get a customized policy Online at Progressive, by phone, or through an independent agent.
How to Get Used to PROGRESSIVE Lenses - 5 Tips and Tricks
Does Progressive have HO6 insurance?
Yes, Progressive offers HO-6 insurance, which is commonly known as condo or co-op insurance.
What Progressive HO-6 Insurance Covers
- Dwelling coverage: Protects the interior structure of your unit from the drywall inward, including built-in fixtures, flooring, and cabinets.
- Personal property: Covers your personal belongings (such as furniture, clothing, and electronics) against covered perils like fire or theft.
- Personal liability: Pays for damages, legal fees, or medical bills if you are responsible for someone's injury or property damage.
- Loss of use: Helps pay for temporary living costs if a covered event forces you out of your condo.
- Loss assessment: An optional or included add-on that helps pay for shared property damage or claims exceeding your association's master policy limit.
You can learn more details or request a custom policy directly through Progressive Condo Insurance.
How much H06 coverage do I need for my mortgage company?
Your mortgage company typically requires an HO-6 dwelling (interior structure) coverage amount that matches the cost to rebuild your unit's interior or covers the Fannie Mae master policy deductible/uncovered improvements, often starting with a minimum baseline of 20% of your unit’s value or loan amount.
How Lenders Determine the Amount
- The Loan Balance or Replacement Cost: Lenders want enough dwelling coverage (Coverage A) to protect their financial investment if the interior is destroyed. Many lenders loosely look for coverage equal to at least 20% of the condo's appraised value or a minimum flat amount (like $5,000 to $10,000+), but you may need more depending on your finishes.
- HOA Master Policy Type: Check whether your HOA has a "bare walls-in" or "all-in" master policy. If it is bare walls-in, your lender will require higher Coverage A to rebuild everything from the drywall inward (flooring, cabinets, fixtures).
- Master Policy Deductible: Per Fannie Mae guidelines, your HO-6 policy must cover any portion of interior improvements not paid by the master policy, or cover the master policy's per-unit deductible if a claim hits the shared building.
Standard Coverage Limits to Carry
Even beyond what the lender strictly enforces for the loan closing, a well-rounded HO-6 policy includes:
- Dwelling (Coverage A): Matches the actual cost to rebuild your unit's interior walls, floors, and custom upgrades.
- Personal Property (Coverage C): Usually recommended at 20% to 50% (or more) of your dwelling coverage to replace your furniture and clothes.
- Personal Liability (Coverage E): Typically a minimum of $100,000 to $300,000 to protect your personal assets.
- Loss Assessment: Standard policies include $1,000, but increasing it to $25,000 or $50,000 is widely advised to cover shared HOA building damage assessments.
Does HO6 cover drywall?
An HO6 insurance policy usually covers drywall, but whether it does depends entirely on your condo association's master policy.
How Drywall Coverage Works
- Bare-walls master policy: The association only covers the outer building shell. Your HO6 policy must cover the drywall, paint, flooring, and fixtures.
- All-in or single-entity master policy: The association covers the original structure and drywall. Your HO6 policy only needs to cover personal property, liability, and any custom upgrades you made.
Check your association’s CCRs (Covenants, Conditions, and Restrictions) or master insurance declarations to see where their responsibility ends and yours begins.
What's the difference between an HO3 and HO6 policy?
An HO-3 policy is standard homeowners insurance for single-family houses, while an HO-6 policy is specialized insurance for condo or co-op owners.
The main differences involve what property they cover, the types of risks included, and how they work with associations.
Property and Structure Coverage
- HO-3 Policy: Covers the entire physical structure of a home, including the roof, exterior walls, foundation, and detached buildings like a garage or shed.
- HO-6 Policy: Often called "walls-in" coverage, this only insures the interior components of a condo unit—such as drywall, flooring, cabinets, and fixtures. The exterior building and shared grounds are covered by the condo association's master policy.
Types of Risks (Perils) Covered
- HO-3 Policy: Uses "open perils" (or all-risk) coverage for the physical dwelling, meaning it covers any type of sudden, accidental damage unless the policy explicitly lists it as an exclusion. Personal belongings are typically covered on a "named perils" basis.
- HO-6 Policy: Uses "named perils" coverage for both the unit interior and personal property. This means you are only protected against specific disasters or events explicitly listed in your contract, such as fire or theft.
Cost and Extra Features
- HO-3 Policy: Generally costs more because it insures a larger and more vulnerable footprint (the entire property). It also includes automatic coverage for detached structures.
- HO-6 Policy: Costs less on average because you do not insure the building exterior. However, HO-6 policies include unique loss assessment coverage to help pay for repairs if the condo association's master policy falls short after major damage to shared areas.
What are common HO6 insurance exclusions?
Standard HO6 condo insurance policies exclude natural disasters, maintenance issues, and shared association property.
🚫 Common HO6 Exclusions
- 🌊 Floods: External water, storm surges, and heavy rain require a separate policy.
- 🌍 Earthquakes: Seismic ground movement requires a dedicated endorsement or policy.
- 🚰 Sewer Backups: Drain and sewer overflows need an extra water-backup rider.
- 🪵 Wear & Tear: Gradual deterioration, rust, and mechanical breakdown are not covered.
- 🐛 Pests: Damage from termites, rodents, birds, or insects is excluded.
- 🦠 Mold: Rot or mold resulting from poor upkeep or slow leaks is typically omitted.
- 🏢 Common Areas: Exterior building elements and shared HOA property fall under the master policy.
- 💍 Valuables: High-value jewelry or art exceeding standard policy limits need floaters.