Review Condo (HO-6) Insurance Policy

Pull out your HO-6 (condo) insurance policy and check: (1) Dwelling coverage — does it cover improvements and betterments like upgraded flooring, cabinets, or fixtures? 'Walls-in' coverage is ideal. (2) Personal property — are your belongings covered at replacement cost, not actual cash value? (3) Loss assessment coverage — does it protect you if the HOA levies a special assessment due to a covered loss? (4) Liability — $300,000 minimum recommended. The HOA's master policy covers only the building structure; if a pipe bursts in your unit and damages the unit below, you're liable for your neighbor's damage. Review and update coverage limits annually, especially after renovations.