What Is HO-6 Insurance (and Why Condo Buyers Still Need It)?
If you’re buying a condo or townhome, you’ll probably hear the term HO-6 insurance pretty early. And it usually sparks the same question: “Doesn’t the HOA’s insurance already cover this?”
Quick answer: The HOA’s master policy typically covers the building and common areas. Your HO-6 policy covers your unit’s interior, your belongings, and your liability—and your lender usually requires it to finalize your loan.
What HO-6 Insurance Is (in plain English)
HO-6 insurance is often called “condo insurance.” It’s designed for owners who don’t own the full structure of a building the way a single-family homeowner does. Instead, you own the inside of your unit and share ownership of the building and common areas through the association.
What the HOA master policy usually covers
Most condo and townhome communities carry an HOA “master policy.” While it varies by association, it often covers things like:
- Exterior structure (roof, siding, shared building components)
- Common areas (lobbies, hallways, elevators, amenities)
- Sometimes limited portions of unit structure (varies widely)
Important: HOA coverage is not standardized. Two condos on the same street can have completely different master policies. That’s why lenders still want your individual HO-6 policy in place.
What HO-6 covers (that the HOA usually does not)
Think of HO-6 as the policy that protects you and what’s inside your unit. A typical HO-6 policy may include:
- Interior coverage (flooring, cabinets, fixtures, and interior finishes—depending on the HOA policy)
- Personal property (furniture, clothing, electronics)
- Personal liability (injuries or damage you’re responsible for)
- Loss of use (temporary housing if your unit is unlivable after a covered event)
- Loss assessment (helps if the HOA assesses owners for certain covered losses)
Why lenders require HO-6 (and how it can delay closing)
Even though the HOA insures the building, lenders typically require evidence that your portion of the property and your liability are covered. Underwriting often needs proof of insurance before final approval. If HO-6 isn’t lined up in time, it can create a last-minute scramble.
Common delay: Buyers assume the HOA policy is “enough,” then underwriting asks for HO-6 details late in the process. Easy fix—just better timing.
The most common HO-6 mistakes we see
- Waiting until the week of closing to start insurance
- Assuming the HOA master policy covers the interior of the unit
- Not confirming what the HOA policy covers (especially for townhomes)
- Buying coverage without checking lender requirements
When to get HO-6 insurance
You don’t have to buy HO-6 insurance the day you go under contract, but you also don’t want it becoming a last-minute underwriting issue. A simple rule that keeps things smooth: start the insurance conversation once inspections are underway or wrapped up, and confirm your lender has what they need.
Need a referral?
You’re always welcome to use any licensed provider you prefer. If you’d like a starting point, here are two options our clients have liked:
- Doug Bradbury (FirstBank Insurance): contact info here
- HeyLocke: heylockeand.com
If you’re condo/townhome shopping
You can browse current options here: Nashville condos and Nashville townhomes. If you’re not sure which category a property falls into, we can help you sort it quickly.
About James & Stephanie Crawford: We’re lifelong Nashvillians and full-time Realtors who’ve helped more than 500 families buy and sell homes across Middle Tennessee over the past two decades. Clients work directly with us from start to finish—no assistants, no hand-offs. If you want direct, hands-on representation, we’d love to help.
Keywords: HO-6 insurance, condo insurance, townhome insurance, HOA master policy, what does HO6 cover, Nashville condo buyers, condo closing delays, lender proof of insurance, dwelling coverage condo, loss assessment coverage
