If you own a condo or townhome, you’ve likely heard about the HO6 insurance policy—also known as Condo Insurance or Townhome Insurance. This type of policy is different from a standard homeowner’s policy. It’s designed specifically for those who own a unit within a shared community, like a condominium or a townhome development.
An HO6 policy works alongside the master home association policy provided by the condo or townhome association. While the association’s master policy usually covers the building structure and common areas, it may protect the inside of your unit and your personal property. That’s where your HO6 policy comes in.
Here are the key HO6 Insurance Policy coverages you should know about:
1. Dwelling Coverage (Building Property Coverage)
This part of the HO6 policy helps pay to repair or rebuild the interior of your unit if it’s damaged by a covered loss. That includes things like flooring, cabinets, lighting, and interior walls. This is often referred to as “Walls In” coverage.
Why it matters: Most condo or townhome associations don’t cover improvements, upgrades, or anything inside your four walls. If a pipe bursts or a fire damages your kitchen, you’ll rely on your HO6 dwelling coverage to repair or replace the damages.
2. Personal Property Coverage
This covers the things you own—furniture, clothing, electronics, appliances, and other personal belongings.
Tip: Take a home inventory so you know how much coverage you need. Replacement cost coverage is usually a better option than actual cash value.
3. Loss of Use (Additional Living Expenses)
If a covered claim makes your condo or townhome unlivable, this coverage helps pay for temporary housing, meals, and other living expenses while repairs are being made.
Example: If a kitchen fire displaces you for two weeks, this coverage helps cover your hotel and food costs.
4. Liability Coverage
Liability insurance protects you if someone gets hurt inside your unit or if you accidentally cause damage to another unit (like water leaking through the ceiling to the unit below).
Coverage limits vary, but many policies start around $100,000 in liability. Consider higher limits for more protection. Our recommendation is $500,000 in liability coverage. It’s inexpensive and if you have a liability claim, you are going to want to have as much liability insurance as possible.
5. Medical Payments to Others
This covers minor medical expenses if a guest is injured in your condo or townhome, regardless of fault. It’s typically used for smaller claims and avoids legal battles.
6. Loss Assessment Coverage
This is a very important but often overlooked part of HO6 insurance. It helps cover your share of a loss or damage to shared areas that the association’s master policy doesn’t fully cover. The most common use of this coverage is when there is a large loss to the Townhome or Condo building. The Townhome master association policies are now carrying very large deductibles. In some cases these are $100,000+ deductibles for the association. When a large loss occurs, such as hail damage to the building, the large HOA policy deductible applies. This deductible is most commonly spread out amongst the unit owners. The Homeowners Association will then asses the unit owners a Loss Assessment. The HO6 policy loss assessment will help pay for this assessment.
Example: If a storm damages the clubhouse and the association passes a $5,000 repair cost to each unit owner, this coverage can help pay your portion.
7. Betterments and Improvements
If you’ve upgraded your condo or townhome with high-end features (like granite countertops or custom cabinets), this coverage ensures those upgrades are protected.
Do You Need HO6 Insurance for a Townhome?
Yes—if your townhome association has a master policy that only covers the exterior, you’ll need an HO6 policy to cover the interior and your belongings. Townhome insurance and condo insurance are often interchangeable terms when it comes to HO6 coverage.
Final Thoughts
Whether you live in a condo or a townhome, your association’s insurance policy has limits. A personalized HO6 policy helps protect the things you’re responsible for—from your personal property to liability and even special assessments.
At Ameriguard Insurance, we help condo and townhome owners across Minnesota find the right HO6 coverage at competitive rates. In fact we have written more HO6 Insurance policies in 2025 than we have in any other year. There is large need for it and we have great options for the Townhome Insurance policy. We make insurance simple and easy to understand.
Need a quote? Contact us today (763)767-0522 to review your HOA documents and make sure you’re fully protected.