HO-6 vs HO-3: Which home insurance policy do you need?
When you own a condo, the insurance question seems simple: get condo insurance. But knowing the difference between an HO-6 (condo) policy and an HO-3 (homeowners) policy matters more than most buyers realize, especially when you’re trying to figure out what your HOA covers, what your lender requires, and what you actually need to protect. Here's what each policy typically covers, how the two compare side by side, and what your HOA's master policy means for the limits you choose.
Quick answer: HO-6 vs HO-3
HO-3 is the standard homeowners policy for single-family homes. It typically covers the entire dwelling you own (structure, roof, and foundation), plus personal property, liability, and more.
HO-6 is the policy form for condo unit owners. Because you share a building with other owners, your HOA carries a master policy that covers the structure and common areas. Your HO-6 typically covers what’s inside your unit, your belongings, your personal liability, and the parts of the unit the HOA’s policy does not cover.
Both are home insurance. They just cover different kinds of ownership.
What is an HO-3 policy?
An HO-3 policy is the standard homeowners policy for single-family homes. It’s designed for people who own a single-family home, including townhomes, duplexes (in some cases), and similar detached structures. It covers the home you own entirely, from the roof down to the foundation.
What HO-3 commonly covers
Coverage A (Dwelling)—the physical structure of your home, including walls, roof, foundation, attached garage, and built-in appliances. HO-3 usually covers your home against any cause of loss except the ones the policy specifically excludes
Coverage B (Other structures)—detached garages, fences, and similar structures on your property
Coverage C (Personal property)—our belongings, usually covered only against the specific causes of loss the policy lists. You choose replacement cost, which pays to replace items new, or actual cash value, which factors in depreciation—what the item is worth today, not what it costs new. If you want a refresher, see actual cash value vs replacement cost.
Coverage D (Loss of use)—additional living expenses if a covered loss makes your home temporarily uninhabitable
Coverage E (Personal liability)—protection if you’re found legally responsible for injury or property damage to others
Coverage F (Medical payments:—coverage for minor guest injuries that pays out regardless of who’s at fault, without requiring a liability claim
Common HO-3 exclusions
Like most property policies, HO-3 typically excludes flood damage (requires a separate flood policy), earthquake damage (needs an earthquake add-on or a separate policy), gradual wear and tear, maintenance issues, and intentional damage. High-value personal property like jewelry, fine art, and collectibles is usually capped at a few thousand dollars under the base policy. Listing those items separately on the policy raises that cap.
What is an HO-6 policy?
An HO-6 is the standard insurance form for people who own a condo or co-op unit. Unlike HO-3, you don't own the building yourself. Your association insures it through a master policy, while your HO-6 policy covers the interior of your unit, your personal property, and your personal liability.
Why loss assessment coverage matters for condos
When a covered loss to common property exceeds your HOA’s master policy limits, or when the master policy has a large deductible, the association may assess unit owners for their share of the cost. Loss assessment coverage on your HO-6 can help pay that amount. It’s typically inexpensive to add and can provide meaningful protection, especially in buildings with large deductibles or older master policies. This feature does not exist in HO-3 policies because single-family homeowners do not have shared building ownership.
HO-6 vs HO-3: Side-by-side comparison
HO-3 (Homeowners) | HO-6 (Condo) | |
|---|---|---|
Who it's for | Single-family homeowners | Condo unit owners |
Building coverage | Full dwelling - roof to foundation | Interior only - walls-in |
HOA master policy | Not applicable | Critical - fills coverage gap |
Loss assessment | Not a feature | Available add-on |
Personal property | Yes | Yes |
Liability | Yes | Yes |
How your HOA coverage affects your HO-6
Here's the difference that matters: with an HO-3, you own the entire structure and must insure all of it yourself. With an HO-6, your HOA owns the building and insures it through a master policy, but that master policy has different forms that affect how much of your unit it covers. Read your HOA's master policy before you set your HO-6 limits. It tells you what you already have, so you don't pay twice for it or leave a hole.
The three master policy types explained
Bare walls (also called studs-out)
The HOA covers only the building shell— exterior walls, roof, and structure. Everything inside your unit (walls, flooring, cabinets, fixtures, appliances) is your responsibility. You need more Coverage A on your HO-6.
Single entity (walls-in)
The HOA covers the building plus original fixtures and finishes as originally installed. Your personal upgrades and belongings are still your responsibility.
All-in
The HOA covers the building, original finishes, and even upgrades you’ve made. You may need less Coverage A, though you still need personal property and liability coverage.
Frequently asked questions about HO-6 and HO-3
Can I buy an HO-3 policy for my condo?
Generally, no. HO-3 is written for someone who owns an entire structure, and as a condo owner you don’t. Carriers write condo and co-op units on HO-6 instead. If a quote for your condo comes back as an HO-3, ask why before you sign it.
If my homeowners association has a master policy, do I still need my own?
Yes, in almost every case. The master policy covers the building and the common areas. It doesn’t cover your belongings, your personal liability, or the finishes inside your unit. Your mortgage lender will usually require an HO-6 as well, and your association’s bylaws may require one too.
Is HO-6 insurance required by law?
It isn’t required by state law the way auto insurance is. Your lender and your homeowners association are the ones likely to require it. Check your loan documents and your association’s bylaws, because the limits each one asks for can differ.
What if my association’s master policy deductible is very large?
Your association can assess unit owners for a share of a covered loss, including the part a large deductible leaves unpaid. Loss assessment on your HO-6 is built for that situation. Not every HO-6 policy includes it by default, so check your declarations page—the summary page at the front of your policy—to confirm whether yours does and at what limit.
Does an HO-6 cover flood damage?
No. An HO-6 typically excludes flood, the same way an HO-3 does. Flood insurance is a separate policy, available through the National Flood Insurance Program and through some private carriers.
If I rent out my condo, does an HO-6 still work?
Not on its own. Once your unit becomes a rental, carriers generally look at landlord policies instead, because the risks and the way they’re priced both change. Tell your carrier before you list the unit, since renting it out without letting them know can affect a claim later.
What HO-6 vs HO-3 comes down to
HO-6 and HO-3 cover two different kinds of ownership. If you own a condo or co-op unit, an HO-6 is the form written for you. If you own a single-family home, it’s an HO-3. That part is usually settled before you start shopping.
What isn’t settled is how much of your unit your own policy needs to carry. That comes from your homeowners association’s master policy, so read it before you set your limits, then compare your Coverage A against what the master policy leaves to you.Your personal property and liability limits follow from there.
Hippo compares quotes from 70+ carriers in about 60 seconds, so you see more than one carrier’s view of your condo or home. Get a free quote today hippo.com.
This article is for informational purposes only and was compiled from sources not affiliated with Hippo. While we believe this information to be reliable, we do not guarantee its accuracy or completeness. For any insurance-related decision, please consult your licensed insurance producer.
