Is HO3 better than HO6?
Asked by: Susan McGlynn | Last update: January 17, 2026Score: 5/5 (40 votes)
What does an HO3 not cover?
That means your insurance company can pay for damage to your home unless it's caused by an event listed in the policy as an exclusion. Some common HO-3 policy exclusions are: Earth movement, such as an earthquake, sinkhole, and mudflow. Water damage from flood, sewer backup, or water seeping in through the foundation.
Why is condo insurance cheaper than homeowners insurance?
Condo Owner's is generally less expensive than Homeowner's because condos are lower risk. Insurance companies favor them more and the underwriting is more relaxed.
Is an HO3 policy good?
The main reason why HO3 policies are so popular is because they offer an excellent balance of reliable, affordable coverage against a broad range of risks. However, depending on your coverage needs and kind of home you have, another type of home insurance may be a better fit.
What is the main difference between ho4 and HO6?
While HO-4 is a type of insurance designed for renters, HO-6 policies are written for people who own a condo. Like a rental apartment, a condo is a part of a larger building that carries its own policy. In the case of a condo, building insurance is usually managed by the homeowners association (HOA).
HO3 vs. HO6: Key Differences Explained
What is the difference between HO3 and HO6 for condos?
A homeowners insurance policy – or HO3 policy – covers both the outside and inside structure of the dwelling. By contrast, condo insurance – or an HO6 policy – usually only covers the inside of the individual unit.
Is HO6 insurance required for a mortgage?
HO-6 insurance is typically required by both the condo building association and the bank that holds your mortgage loan. This policy provides financial and legal protection from various covered perils and losses, including personal liability from injuries sustained on your property.
What is a HO3 policy for a condo?
If you own a townhouse or condominium, you will likely be buying an HO-3 policy or an HO-6 policy. Both of these policies cover your personal property, the interior finishes of your unit (walls, flooring, ceilings, etc.), and your liability.
Does HO3 cover water damage?
HO3 and House & Property policies include water damage when it results from a covered loss. For example, say a tree branch punctures your ceiling during a rainstorm. Your homeowners insurance can usually help pay for the water damage that follows because it was caused by a loss policies typically cover.
Does HO3 cover termite damage?
Termite damage and removal typically aren't covered by your home, condo, or renters insurance policy. Insurance companies consider termite infestations to be preventable, so the cost of termite damage and removal will come out of your pocket.
How much is an HO6 policy?
The average condo insurance cost is $455 per year, according to NerdWallet's rate analysis. Condo insurance rates vary widely depending on where you live, how much coverage you need and the deductible you choose. Learn more about how much condo insurance costs in your state.
What is not covered by condo insurance?
Condo insurance generally won't cover common areas in your complex, like hallways, sidewalks and parking lots. That's the responsibility of your condominium or homeowners association. Condo policies can also insure townhomes, rowhomes, and subdivisions that aren't classified as condominiums.
Why is condo insurance going up?
Climate change, inflation and industry woes have caused premiums to soar nationwide. Homeowners insurance rates rose dramatically between 2023 and 2024, according to a Bankrate analysis of rate data from Quadrant Information Services.
Are pets covered under HO3?
Homeowners insurance can provide liability protection to everyone in your family — including your four-legged friends. If you have a dog or a cat, your policy's liability coverage may offer protection if you're liable for injuries or damages caused by your pet.
Does HO3 include replacement cost?
As mentioned, in standard HO-3 policies, your dwelling and other structures are already covered at replacement cost, but your personal property typically is not. Instead, it is covered at actual cash value.
Does HO3 cover trees?
If a tree hits an insured structure, a homeowners policy covers the cost of removing the tree, generally up to about $500 to $1,000, depending on the insurer and the type of policy purchased. If the fallen tree did not hit an insured structure, there is generally no coverage for debris removal.
Will insurance pay to replace the entire floor?
Dwelling coverage, on your condo or homeowners policy, may pay to repair or replace your floors and carpet if they're damaged by a covered peril. For instance, if your home's floors are damaged in a fire, your home insurance may pay for new flooring, up to your policy's limits and minus your deductible.
Is a bathtub leak covered by homeowners insurance?
If the source of the damage comes from inside your home, such as a water leak from plumbing , a broken pipe or overflowing appliance, you'll likely be covered by your homeowners insurance.
Does homeowners insurance cover washed out driveway?
If your driveway collapsed or shifted because the ground under it moved, you're likely not covered. Additionally, if your driveway was washed out by rain or ruined in another way by a flood, your provider won't reimburse you.
Is HO3 or HO6 better?
Whether you should choose an HO-3 or HO-6 homeowners insurance policy comes entirely down to the type of property you own. HO-3 homeowners policies are designed for owner-occupied dwellings with one to four family units. HO-6 homeowners policies are designed for owners of condominium or co-op units.
What does HO6 cover?
HO6 insurance provides: Building/Unit/Dwelling Coverage – Like homeowners insurance, it provides coverage against fire or smoke damage, storms, vandalism or internal plumbing issues like a burst pipe.
Does HO3 cover wind and hail?
Question # 1: Am I covered for direct losses due to fire, lightning, tornadoes, wind storms, hail, explosions, smoke, vandalism and theft? Answer: Yes. The HO-3 provides broad coverage for these and other disasters or “perils,” as they are called in the policy, including all those listed in the question.
Does HO6 cover drywall?
An HO6 insurance policy typically covers drywall as part of its “unit or dwelling coverage.” This coverage protects the interior structure of a condo unit, which usually includes the drywall, as well as interior walls, ceilings, and sometimes flooring.
Can an HOA require homeowners insurance?
Can an HOA require homeowners insurance? Homeowner associations may require you to get additional insurance coverage depending on the circumstances of your neighborhood (if your neighborhood pool allows visitors, etc).
Who pays the condo master policy deductible?
It's also important to note that property coverage often includes deductibles, which the condo association is responsible for paying in the event of a claim.