HO6 POLICY EXPLANATIONS
The HO6 Policy provides coverage for the homeowner for building and personal property.
However, the dwelling coverage is less extensive due to the Association purchasing insurance to cover the building.
Coverage A: Dwelling Coverage: While the Association maintains building coverage for the Association termed “single entity”. The homeowners policy needs to include this coverage and incorporate the additions and alterations, improvements and betterment’s made by the unit owner or previous unit owner. In the event of a covered loss the Association’s policy and homeowner’s policy merge to make the homeowner whole. (Such as sheet rock damage below the Association’s deductible).
Coverage B: Other Structures: Covers other structures on the residence premises, set apart from the dwelling by clear space (e.g. tool shed, detached garage). This also includes structures connected to the swelling by only a fence, utility fence or similar connection.
Coverage C: Personal Property: Coverage is defined as and should include such items as the couch, jewelry, clothes, dishes, etc. (All those things you would take with you when you move).*
Coverage D: Loss of Use: If a covered loss makes the unit uninhabitable, the policy covers the living expense that results.
Coverage E: Liability: Protects the insured should a claim be made or suit be brought for damages because of bodily injury or property damages caused by an occurrence for personal liability within the home. The policy will provide defense and pay damages up to the limit of liability for which the insured is legally liable.
Coverage F: Medical Payments To Others: Will pay the necessary medical expenses incurred or medically ascertained within 3 years from the date of the accident causing the bodily injury within the home.
Loss Assessments is defined as a charge by the Association to each homeowner collectively for their share when such an assessment is made necessary by a loss to the Association.
Homeowners to verify with their agent coverage for water damage, sewer backup and specific
• In many policies Coverage C will combine personal property and additions/alterations (improvements/betterments) as one limit. Therefore, this coverage limit must represent the full value of your improvements as well as your personal property.