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Frequently Asked Questions - Insurance Categories

Risk Management I recently purchased a townhome located within a Home Owner Association community, what types of insurance am I required to carry? What are the different forms of insurance coverage and policies associated with Homeowner Association living? I recently purchased an HO-6 Policy, what does it cover? What is an HO-4 policy? What is an HO-3 policy? What does an Association's 'Master Policy' generally cover?

Answers

Risk Management Question: I recently purchased a townhome located within a Home Owner Association community, what types of insurance am I required to carry?   Answer: As a Lot Owner you will need two separate policies to protect your investment. Your own individual Homeowner Policy and the Broadlines Coverage provided by the Association's Commercial General Liability Policy.   Back to top Question: What are the different forms of insurance coverage and policies associated with Homeowner Association living?   Answer: HO6 - Homeowner HO4 - Renter HO3 - Landlord   Back to top Question: I recently purchased an HO-6 Policy, what does it cover?   Answer: An HO-6 policy generally covers 16 listed perils along with certain building items in which the unit owner might have an insurance interest.   Back to top Question: What is an HO-4 policy?   Answer: Created specifically for those who rent the home they live in, this policy protects your personal possessions and any parts of the unit that you own, such as new furniture, cabinets, etc., against all 16 perils. Often provides living assistance in the event you are displaced from your home for any covered peril.   Back to top Question: What is an HO-3 policy?   Answer: If you own the home, you have several policies to choose from. The most popular is the HO-3, which provides the broadest coverage. Owners of multi-family homes generally purchase an HO-3 with an endorsement to cover the risks associated with having renters living in their units.   Back to top Question: What does an Association's 'Master Policy' generally cover?   Answer: 'master Policies' come in many forms and packages. The coverage is generally created via discussions with the insurance underwriter and the Association, its officers and/or property manager. Generally speaking the 'master policy' will provide coverage for the common area items, such as the roof, outside building structures, parking lots, carports, asphalt, and walkways for both liability and physical damage.   Back to top

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