HO-6 Condo Insurance in Washington, Explained

An HO-6 policy is the condo owner’s version of homeowners insurance. The association’s master policy insures the building’s structure and common areas; your HO-6 covers what the master policy doesn’t — typically your unit’s interior finishes, your belongings, your liability, and (the part everyone misses) your share of the master policy’s deductible. If you’re financing a condo, your lender will require an HO-6.

Where the master policy ends and yours begins

The boundary depends on how the association’s declaration and master policy are written. The two common flavors:

• “Bare walls” coverage — the master policy stops at the studs. Cabinets, flooring, fixtures, even drywall in some versions are your problem. Your HO-6 needs meaningful dwelling (“walls-in”) coverage.
• “All-in” / single-entity coverage — the master policy includes interior finishes as originally built. Your HO-6 covers upgrades, your belongings, and liability, and can carry less dwelling coverage.

You find out which you have by reading the master policy summary in the resale certificate or asking the association’s insurance agent. Don’t guess — the difference between bare-walls and all-in is the difference between a $20,000 problem and a $200 one after a kitchen fire.

The deductible trap

Master policies on Washington buildings increasingly carry large deductibles — and water-damage deductibles have climbed hardest, since pipe leaks are the bread-and-butter claim in multifamily buildings. Associations can often pass that deductible to the owner whose unit was involved. Loss assessment coverage on your HO-6 is the line item that responds when the association bills owners after a covered loss; “deductible assessment” coverage handles your share of the master deductible specifically. These coverages are cheap relative to what they protect. Ask your insurance agent to size them against the building’s actual master-policy deductible, not a default.

What to check before you buy the unit

1. What’s the master policy’s deductible — overall and for water?
2. Bare-walls or all-in?
3. Any insurance-driven special assessments in the board minutes? (Premium spikes show up in HOA budgets before they show up in dues.)
4. Has the building had repeated water claims? Claims history can affect both the building’s premiums and, in rough cases, its insurability — which affects resale.

What HO-6 typically costs

Less than house insurance, since the structure is mostly the master policy’s job — but pricing varies with the building’s claims record, your coverage limits, and deductibles. Get quotes during your contract period, not the week of closing; for buildings with a messy claims history, an early quote is also a diligence signal. Your lender’s requirements set the floor, not the right amount — the right amount comes from the bare-walls/all-in answer above.

This is one of several documents-and-details areas where condo purchases differ from houses — the full picture is in buying a condo downtown.

Hiring an agent who actually knows buildings — their policies, their boards, their histories — is worth real money in a condo market. What it costs varies, and that’s the part nobody publishes. Manaky Homes will: a free marketplace where Greater Seattle agents post their fees side by side. Waitlist here.