Condo unit-owner insurance policy borrowers may need when financing a condominium unit.
An HO-6 policy is condo unit-owner insurance that borrowers may need when financing a condominium unit.
An HO-6 policy matters because condo insurance is split between the association’s project-level coverage and the unit owner’s own coverage. A lender may need proof that the borrower’s unit-level policy is in place before closing.
It also matters because borrowers often assume the association’s insurance dues solve the entire insurance requirement. In practice, the association’s Condo Master Policy and the borrower’s HO-6 policy may cover different parts of the risk.
Borrowers usually encounter HO-6 language during underwriting, condo review, or closing preparation. The lender may ask for the policy, an Insurance Binder, or an Insurance Declarations Page showing acceptable unit-owner coverage.
The term also appears when comparing what the association covers against what the borrower still needs to insure personally.
| Term | Borrower-facing meaning |
|---|---|
| HO-6 policy | The unit owner’s own condo insurance policy |
| Condo Master Policy | The association’s project-level insurance policy |
| Walls-In Coverage | Interior unit coverage concept borrowers may hear in condo insurance review |
| Loss Assessment Coverage | Coverage for certain association assessments tied to covered losses |
A buyer is financing a condo. The association has a master policy, but the lender still asks the buyer to provide an HO-6 policy before closing because the unit owner’s own insurance is part of the file.
HO-6 policy differs from Condo Insurance because condo insurance is the broader category, while HO-6 is the common label for the unit-owner policy.
It differs from Condo Master Policy because the master policy belongs to the association, while the HO-6 policy belongs to the unit owner.
It also differs from Condo Questionnaire. The questionnaire gathers project information; the HO-6 policy is actual insurance coverage tied to the unit owner.