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Checking your downtown Boston condo insurance policy. What is HO-6 Insurance?

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You might have HOA insurance coverage when buying a condo, but you have to purchase your own “walls-in” coverage during escrow.

Lenders require what’s known as HO-6 insurance. Otherwise known as a hazard or individual unit coverage, HO-6 insurance provides personal property and liability coverage for whatever happens within your unit’s walls.

Yes, a portion of your monthly HOA dues does pay for building insurance and common area coverage. But that building policy doesn’t cover anything that might happen inside your unit.

HO-6 coverage costs anywhere between $600-$1,000 annually and will end up being part of your closing costs. The provider will typically need to know what year the building was constructed; the number of stories and units in the property; unit square footage and roof type. Your agent can get you started by giving you all these details so you know what to respond when asked by the insurance agent.

If you’re buying a downtown Boston condo for sale, know that condo insurance is required by your mortgage company and your condo association. It’s also vital for protecting your assets and interests. As such, it is important to ensure that you’ve found a suitable amount of coverage for protecting everyone involved. Following is everything you need to know about reviewing your Boston Midtown condo insurance policy.

Check Out the Condo Association’s Master Insurance Policy

Beyond meeting your lender’s requirements for coverage, you should take a look at the master insurance policy that your downtown condo association maintains. This will give you a better understanding of your own coverage needs. Everything that isn’t covered in the master policy should be covered in your own. This includes any alterations or improvements that have been made to your unit.

Take Stock of Your Personal Items in Your Condo

It’s also necessary to assign a value to your personal items in order to determine exactly how much content coverage you should bind. Perform a thorough inventory while creating a list of each possession and its respective value. Make sure to account for all antiques, artwork, and any other items of high value. Your insurer can tell you whether it will be necessary to bind separate personal articles coverage for these.

Know Your Obligations for Loss Assessment

The final step in the review process is to determine your personal obligations for loss assessment. For instance, when any portion of the condo building is damaged or destroyed by a flood, fire or another event, each unit owner will be charged money for covering his or her portion of the repair or replacement costs. A good condo insurance policy will pay out funds to cover some or all of these fees even though they represent damages that have occurred outside of your unit. If you don’t have this additional protection, ask your current insurer whether or not you can get it.

When purchasing a condo, loft, or penthouse in Midtown, it’s important to work with a reputable real estate agent who can thoroughly explain the entire process, mortgage, and insurance responsibilities, and advocate for your best interests from start to finish. For more information or to schedule an appointment, call 617-595-3712 forward to hearing from you.

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