The insurance problem most condo and townhome owners face usually doesn’t start with having no coverage.
It starts with the assumption that they have enough.
After all, the Association has a master policy. The homeowner has an HO-6 policy. So if something happens, everything should be covered… right?
Not always.
That space between what the Association’s master policy covers and what the homeowner’s individual HO-6 policy covers is where confusion, frustration, and unexpected bills can show up.
And for condo and townhome owners, that gap matters.
✨ Why HO-6 Coverage Matters
When you own a condo or townhome, you typically share ownership of common areas and community property with other owners. That means damage or liability involving shared property can affect more than just one unit.
The Association’s master policy is designed to protect the Association’s insurable interests, but it does not automatically protect every homeowner from every possible cost.
That’s where an HO-6 policy comes in.
An HO-6 policy may help cover the homeowner’s personal property, interior finishes, improvements, and certain costs that become the owner’s responsibility. One of the most important pieces to understand is Loss Assessment Coverage.
✨ The Hidden Risk: Loss Assessments
Loss Assessment Coverage may help protect homeowners if the Association issues a special assessment related to shared property damage or liability costs.
For example, if a covered loss impacts common areas or shared property and the cost exceeds what the Association’s insurance covers, homeowners may be assessed for their portion of the remaining expense.
That can catch people off guard.
A homeowner may assume the master policy takes care of the full claim, only to find out there is a deductible, coverage limit, exclusion, or remaining balance that gets passed along through a special assessment.
Depending on the policy, Loss Assessment Coverage may help pay the homeowner’s share. But the details matter.
That includes:
✅ Coverage limits
✅ Deductibles
✅ Exclusions
✅ Type of loss
✅ Carrier-specific language
In other words, simply having HO-6 insurance is not the same as knowing you have enough of the right coverage.
✨ Common Mistakes Homeowners Make
One of the most common mistakes homeowners make is assuming the Association’s master policy covers everything.
Another is choosing an HO-6 policy based only on price without asking how it responds to loss assessments, master policy deductibles, water damage, wind and hail, fire, liability claims, or other risks that may apply to the community.
Many homeowners also set their policy once and never revisit it.
Yet, that can be risky.
Insurance markets change. Construction costs change. Deductibles change. Association master policies can change. A coverage limit that seemed fine several years ago may not be enough today.
A few smart questions to ask your insurance agent include:
✅ Does my policy include Loss Assessment Coverage?
✅ What is my coverage limit?
✅ Does it apply to Association master policy deductibles?
✅ Are there exclusions I should understand?
✅ Would this coverage help if the Association issued a special assessment after a covered loss?
These are much easier questions to ask before there is a claim.
✨ Clarity Before the Claim
Insurance is not usually the most exciting part of homeownership, but it can become one of the most important when something goes wrong.
For homeowners, reviewing HO-6 coverage is a simple way to better understand personal risk.
For Boards, encouraging homeowner education around HO-6 policies can reduce confusion and frustration when claims arise.
Because the best time to find the insurance gap is before there is a bill attached to it.
At RowCal, we help Boards bring clarity to complex community topics so homeowners can make more informed decisions and communities can plan ahead with confidence.
💫 If your Board wants a management partner that can help simplify important conversations around insurance, homeowner responsibility, and long-term community protection, we’re here to help bring more clarity to the table. Contact us to learn what The Smarter Way To HOA can look like for your community.