- HO-6 policy
- The homeowners policy form for condominium unit owners. It covers the parts of the unit the association does not insure, your belongings, loss assessments, additional living expenses and personal liability. The right amount depends on the association's master policy.
- Master policy
- The association's insurance on the building and common areas. Bare walls policies cover only the structure; single entity policies also cover the unit's original fixtures and finishes; all-in policies also cover owner improvements. The type determines how much dwelling coverage you need.
- Dwelling coverage (Coverage A) for condos
- In an HO-6 policy, Coverage A insures the parts of the unit you are responsible for under the bylaws: everything from the drywall in for bare walls policies, or improvements and betterments for single entity policies.
- Improvements and betterments
- Upgrades made after the unit was built, such as new cabinets, countertops, flooring or bathroom remodels. Under many master policies they are the owner's responsibility, even if a previous owner made them.
- Loss assessment coverage
- Pays your share when the association charges owners for a covered loss to common property, such as the master policy deductible after a storm. Master deductibles can be large, especially percentage wind or hurricane deductibles, so check yours.
- Loss of use (Coverage D)
- Pays extra living costs while your unit cannot be lived in after a covered loss, including when damage elsewhere in the building forces you out. Your mortgage and HOA dues usually continue during repairs.
- Personal liability
- Covers injuries to guests in your unit and damage you cause to other units, such as a leak from your washing machine. The master policy generally covers liability in common areas, not inside your unit.