H06 Insurance Review

When purchasing a condominium or townhouse, homebuyers are required to purchase a H06 insurance policy.  What is a H06 insurance policy?

The condo policy will provide for coverage on the interior walls and for personal property held within the dwelling. This policy will usually also provide liability coverage for the owner.

Here is a break-down of the coverages:

Coverage A – Dwelling: Declared Value.

Coverage B – Other Structures: Part of Coverage A.

Coverage C – Personal Property: $10,000 minimum.

Coverage D – Loss of Use: 50% of Coverage C.

Liability: Minimum of $100,000.

Medical Payments: Minimum of $1,000.

What is the difference between Master Insurance & H06 Policy?

A H06 Condo insurance policy that bridges the gap in coverage between your condo association’s master insurance policy and your property/personal liability protection.

Every condominium development has a master insurance policy that covers items such as the physical building and all of the common area (pools, gyms, lobbies, etc) and provides worker compensation for those employed by the condo association. However, these master insurance policies typically stop coverage at the four exterior walls of your condo. It is important to note that master insurance policies DO NOT protect your personal contents not insured by the master association policy neither are any of the items within the four walls of your condo: cabinets, appliances, flooring, jetted tubs, etc.

Needless to say, many associations no longer cover the replacement of exterior windows, this is something you need to inquire about prior to purchasing a condo.

Where to purchase your H06 Policy?

Homebuyers can purchase their H06 condo insurance policies from any of the large insurance companies such as: State Farm, Geico, Allstate, USAA, etc.  If you have car insurance or life insurance with one of these companies, they will typically discount your H06 insurance policy.

H06 condo policies can be as inexpensive as $14-$35 per month.

Hopefully you found this post useful! If you would like more information about Washington DC real estate, please contact Jason Trotman at 301-452-4767. If you’re new to DC, I’d especially like to extend a warm welcome. I value the opportunity to help my clients find the home that meets their needs and provide them with professional, reliable service.