Condo Insurance (HO-6) in Arizona
What is condo insurance?
Condo insurance, written on an HO-6 form, covers the part of your condo your HOA's master policy doesn't: the interior of your unit, your belongings, your personal liability, and special assessments the association can pass on to you.
As an independent Scottsdale broker, BrokerPro reads your HOA's master policy first, then matches an HO-6 to the gap it leaves, so you're not paying twice for the building or leaving a hole where the master policy stops.
Who needs it
An HO-6 policy fits:
- Condo and townhome owners whose HOA carries a master policy on the building
- Buyers closing on a condo, since lenders require an HO-6 before funding
- Owners in high-rise and mid-rise buildings around Scottsdale, Tempe, and downtown Phoenix
- Snowbirds and second-home owners who leave a unit empty part of the year
- Anyone whose HOA carries a 'bare-walls' master policy, which leaves more for the owner to insure
What it commonly covers
A typical Arizona HO-6 policy includes:
- Dwelling coverage for the interior: flooring, cabinets, built-ins, and fixtures inside your walls
- Personal property, from furniture to electronics
- Loss assessment, which helps pay your share when the HOA assesses owners after a covered loss
- Personal liability if someone is injured in your unit or you damage a neighbor's
- Loss of use, for extra living costs if a covered loss makes the unit unlivable
What it may not cover
Gaps and coordination points to know:
- Whatever the HOA master policy already covers, which you confirm first to avoid doubling up
- Flood, which needs a separate policy even for an upper-floor unit
- Assessments above your loss-assessment limit, which you can raise by endorsement
- Water backup and certain other perils, unless added
Coverage varies by policy. The details above are general; your policy's terms control.
When it's commonly required
- Your mortgage lender requires an HO-6 as a condition of the loan
- Your HOA's bylaws require owners to carry a minimum HO-6 and name the association
- You are closing on a condo and escrow needs evidence of coverage
How BrokerPro approaches it
The single most important step with a condo is reading the HOA master policy, because 'walls-in' and 'bare-walls' master policies leave very different amounts for you to insure. We start there, then size the HO-6 dwelling and loss-assessment limits to match.
We compare HO-6 options across carriers and explain the differences, including how loss assessment works if your building faces a special assessment after a monsoon, fire, or major repair.
Frequently asked
What is an HO-6 policy?
HO-6 is the industry name for a condo or townhome owner's insurance policy. It covers the interior of your unit, your belongings, your liability, and special assessments, without insuring the building's structure or common areas, which are the HOA master policy's job.
Doesn't my HOA's master policy cover everything?
No. The master policy covers the building and common areas, but how far it reaches into your unit depends on whether it's 'walls-in' or 'bare-walls.' A bare-walls master policy stops at the unfinished walls, leaving your flooring, cabinets, fixtures, and improvements for your HO-6 to cover. Read the master policy, or send it to us, before you assume you're covered.
What is loss assessment coverage?
When a covered loss exceeds the HOA master policy or hits its deductible, the association can bill every owner a share, called a special assessment. Loss assessment coverage on your HO-6 helps pay your share, up to the limit you choose. In older Arizona buildings facing roof or system assessments, it's worth raising this limit above the default.
Do I need condo insurance for a second home or snowbird unit?
Usually yes, and often the lender or HOA requires it regardless. A unit that sits empty part of the year carries its own risks, like an unnoticed water leak, so tell us about the occupancy pattern and we'll place an HO-6 that accounts for the time it's vacant.