HO-4 vs. HO-6 Insurance: What's the Difference?

• Personal Property: Your furniture, electronics, clothing and other belongings if they're damaged by fire, theft, vandalism or certain types of water damage.
• Liability Protection: Legal defense costs and damages if someone is injured in your rental or you accidentally damage someone else's property.
• Additional Living Expenses (ALE): Hotel stays, meals and other costs if a covered loss forces you out of your unit temporarily.
• Medical Payments to Others: Limited medical bills for guests injured in your home, regardless of who was at fault.

• Building structure: Walls, roof and foundation damage are the landlord's problem, not yours.
• Flood Damage: Standard HO-4 policies exclude flood damage; a separate flood insurance policy is required.
• Earthquake Damage: Earthquakes are usually excluded and require a separate endorsement or standalone policy.
• Maintenance Neglect: Mold from an unreported leak, for example, won't be covered.
• High-Value Items: Jewelry, art and collectibles above standard sub-limits may require a scheduled personal property endorsement.
• Roommate Belongings: Your policy covers only your stuff. Roommates need their own policy.

• Interior dwelling: Walls, floors, ceilings, built-in appliances and fixtures inside your unit, for losses like fire, water damage and vandalism.
• Personal property: Furniture, electronics, clothing and other belongings from covered losses.
• Liability: Legal costs and damages if someone is injured in your condo or you accidentally cause damage to a neighboring unit.
• Additional living expenses (ALE): Temporary housing and related costs if your condo is uninhabitable after a covered loss.
• Loss assessment: Your share of a special assessment from the HOA after a covered loss exceeds the master policy's limits.
• Medical payments to others: Limited medical costs for guests injured inside your unit, regardless of fault.

• Building exterior: Roof, hallways, parking areas and common spaces are covered by the HOA's master policy.
• Flood damage: Requires a separate NFIP or private flood policy.
• Earthquakes: Excluded by default; a separate endorsement or policy is required.
• Maintenance damage: Gradual damage from neglect — mold, pest infestations — isn't covered.
• Neighboring unit damage: If a pipe bursts next door and water reaches your unit, coverage depends on your policy's specific language. Some scenarios require additional endorsements.
• Unreported improvements: Renovations and upgrades you've made may not be covered without a betterments and improvements endorsement.

The most common mistake condo owners make when buying HO-6 is not reading their HOA's master policy first. The master policy determines exactly where your personal coverage has to start.

Two master policy types exist, and they create very different HO-6 requirements:

• Bare walls: Covers only the building structure and common areas. Everything from the drywall inward (flooring, cabinets, fixtures) is your responsibility. This is the most common type, and it means your HO-6 needs to carry more interior dwelling coverage.
• All-in: Covers the building structure plus original fixtures and finishes inside each unit. Less common, but when it applies, it reduces how much interior dwelling coverage you need in your HO-6.

Before buying condo insurance, ask your HOA board for a copy of the master policy declarations page. Your insurance agent can use it to identify the exact coverage gap your HO-6 needs to fill.

One more gap to plan for: if you've upgraded your unit with new hardwood floors, custom cabinetry, or upgraded appliances, note that those improvements likely aren't covered under a standard HO-6. A betterments and improvements endorsement covers them.