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HO6 Insurance

The Maryland Condominium Act has been amended to increase from $5,000 to $10,000 the amount which a unit owner may be required to pay where the cause of fire, water or other casualty damage to units or the common elements originates in that owner’s condominium unit, beginning October 1, 2020.

For condos which have a deductible of at least $10,000, an owner will be responsible for the first $10,000 of repair costs to the owner’s units, other units and the common elements if the cause of damage originates in the owner’s water or sewer pipes, kitchen or other parts of the unit. If the insurance deductible is less than $10,000, a unit owner will be responsible for the lower deductible amount. The condominium association will be responsible for the repair cost in excess of the deductible amount.

Also known as an HO-6 insurance policy, condo insurance protects condo units while also providing both personal liability coverage and living expense coverage if a condo becomes uninhabitable. HO-6 policies are also called walls-in coverage because they protect your individual unit, while your condo association's master policy covers the building's common areas.

However, standard condo insurance doesn't apply in certain situations, such as floods. You may want to consider additional policies depending upon where your condo is located and how much time you spend there.

Typically, all common areas in a condominium building are covered under a "master insurance policy" purchased by the condo association or HOA. This includes not only the building's roof and exterior but also internal areas such as elevators and hallways.

The cost of the master policy is shared by all unit owners, usually in the form of recurring condo or HOA fees.

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