Understanding Homeowner’s Insurance – 6 (HO-6)

Your home is your biggest investment, but it’s more than that. It’s the roof over your head and where you share some of the greatest memories with your family. Every year there are heartbreaking stories of families that lost their houses because of a natural disaster. There was nothing they could do to prevent their losses, but there is something they could have done to protect yourself against losing everything. That’s why homeowner’s insurance policies are so important.

Homeowner’s insurance is one of the most misunderstood insurance products on the market. There are several different types, terms, and exclusions that most policyholders don’t fully understand. But, not entirely understanding your coverage or policy could have dire consequences, like being forced to replace all of your belongings. One common type of homeowner’s insurance policy is the HO-6 plan. At Longevity Brokers, we are dedicated to helping you understand your insurance decisions. We are happy to provide HO-6 policies at an affordable rate to the Denver, Colorado area.

What is the HO-6?

HO-6 is an insurance policy that is specifically designed for condominiums or co-op properties. Unlike traditional homes, condos provide a unique challenge for the owners and insurance companies. In most cases, there is more than one owner of the condo, who holds the policy? Are the other owners covered? What if they rent out the condo to guests or family members? What exactly is covered under a condo policy? These are all questions that condo owners face when looking for an insurance policy for their property.

So, how do these policies differ from a traditional homeowner’s insurance policy like an HO-1 or HO-2? In a lot of ways, the HO-6 plans are similar to a renter’s insurance policy, but with a few key differences. In both policies, the insurance company concerned with the building itself or the property it’s on, just the property inside of the buildings. One of the main differences is the focus of the policies. With renter’s insurance plans, they tend to focus on furniture, TVs, computers, etc. but with HO-6 policies, they are also concerned with the floors, stoves, fridges, fixtures, etc. That’s because, with a renter in an apartment, they wouldn’t be responsible for replacing things like flooring or fixtures, but in a condo, the owner would have to pay for those costs.

Another key component of HO-6 that is shared with a renter’s policy is the liability coverage that is offered. For condo owner’s liability insurance is essential. It will protect you in case you were to cause damage to other people’s property in some way.

What to Know when Buying HO-6 Policies

There are several different things you should know when you are looking to purchase an HO-6 policy. Before you purchase one, check with your homeowner’s association to see if they already cover your condo. Sometimes the homeowner’s association will have an insurance policy, normally called the “Master Policy” that will insure your condo, but that doesn’t mean you won’t need an additional HO-6 policy. In most cases, the insurance policy that the homeowner’s association holds doesn’t insure any of your belongings inside of the condo, but some of them to have liability covered.

Additionally, your homeowner’s association may have required for the coverage that you get through your policy. Some associations will require that you hold a certain amount or have certain disasters covered under your policy. Be sure to consult your HOA’s guidelines before searching for a plan.

After you understand any rules set by your homeowner’s association, you can begin your search for an HO-6 policy. There are several important factors that you should consider when you’re looking for your plan. The first thing you need to think about is where your condo is located. This might seem obvious, but you should think about the types of natural disasters that are common to your area. If your condo is an area that is at a higher risk for flooding or earthquakes, you should take note that more than likely your HO-6 isn’t going to cover those disasters. You’re going to need to purchase additional riders to protect your belongings from flooding and earthquakes.

You will also need to determine how large of a policy you need to buy. Before you start the process, take inventory of all of your belongings inside of the condominium and everything you would be responsible paying to replace. It’s important that you get a policy that is large enough to cover any losses that you would suffer. Don’t guess at how much you need, you will be surprised at just how much your properties adds up to.

HO-6 Policies, What You Need to Know

Having quality insurance policies is one of the best purchases that you can make for you and your condo. We are happy to sell HO-6 policies, as well as traditional homeowner’s insurance plans, life insurance, and auto insurance. You never know what life is going to throw at you tomorrow, but having insurance can protect you from life’s surprises.

If you have any questions about HO-6 insurance plans or any questions about any of our products, we will be happy to answer those questions and provide you with some of the most affordable insurance coverage in Denver, CO. If you’re looking to insure your condo against some of the natural disasters that could wreck your property, call us today at (720) 209-4598 or use our contact form and an agent will contact you shortly.

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