Condo rebuild cost — HO-6 vs HO-3 and the master-policy gap
By Severance Calculator Editorial · Updated
The problem
Condo coverage is the most misunderstood area of personal lines insurance. The HOA master policy covers the structural shell (foundation, framing, exterior walls, roof). The unit owner's HO-6 covers everything inside the studs — drywall, flooring, cabinets, fixtures, appliances, personal property. The gap between "all-in" and "bare walls" master policies is where condo owners get burned.
The data
An "all-in" master policy covers original-construction interior finishes; the HO-6 covers only owner improvements and personal property. A "bare walls" master policy covers only the shell; the HO-6 must cover all interior finishes from drywall inward. Read the master policy declarations. A $200k condo with a bare-walls master may need $80-120k of HO-6 Coverage A; the same condo with an all-in master may need only $20-40k.
What to do
Request a copy of the master policy declarations from your HOA. Determine whether it is bare-walls or all-in. Size HO-6 Coverage A accordingly. Add Loss Assessment coverage ($25-50k typical) to cover your share of damages assessed by the HOA against the building. Consider Extended Replacement Cost on the HO-6.