Wherever you live, there’s an insurance policy to protect it, and condos are no exception. However, specific rules about condo ownership make individual condo policies more complicated than a homeowners or renters policy. Condo associations carry coverage, but it’s still up to owners to fill in the gaps with individual condo insurance, also called an HO6 policy.


At minimum, HO6 policies cover owners’ personal property, protect them against liability and pay some living expenses if they’re displaced, but some owners will need more coverage. What should you know before buying? NerdWallet consulted a few experts for advice.


What kind of master policy do you have?


Your condo association will carry a master policy (or HOA policy), which protects common areas, from condo exteriors to shared resources, like a pool or gym. You’ll be responsible for insuring your unit – but what counts as yours varies from policy to policy.


Most master policies fall into a few basic categories. According to Jim Hyatt, vice president of personal lines at Massachuetts-based Arbella Insurance, “By-laws may state that the condo owner is responsible for building items from the ‘wall studs in,’or conversely may state that the association is ‘all in,’ and therefore the master policy would pick up responsibility for the whole structure.”


You may also have a “bare walls in” or an “original specification” master policy. “In Illinois, we almost always see ‘original specification’,” said Karyl Dicker Foray, community association specialist at Rosenthal Brothers, Inc., an insurance agency based in Deerfield, Illinois.


The 4 policies provide different levels of coverage for interior features such as countertops, faucets and flooring. If your condo association has a“bare walls in” or “wall studs in”master policy, these are your responsibility. If your policy is “original specification,” these features will be covered, but any upgrades you make won’t be. And if you have an “all in” policy, the condo association will cover them, leaving you responsible only for insuring your personal property, liability and living expenses.


How else will your master policy affect you?


Like most insurance policies, your condo association’s master policy has a deductible, which becomes an issue if common areas of your complex are damaged. Before your policy will pay out, everyone in the complex must contribute.


“I have seen deductibles as high as $ 25,000,” says Ron Sirotzki, insurance consultant and founder of CondoRisk. “But on average the association’s deductible is usually $ 2,500 to $ 5,000.” You may be asked to pay a portion in the event of a claim.


A bill for your share of $ 5,000 can still be an unwelcome surprise, especially if you have your own damage to contend with. Fortunately, Hyatt notes, “This deductible may be recoverable from the condo owner’s individual policy.”


But such soverage doesn’t mean you can skip the emergency fund. If your complex experiences a loss that costs more than the HOA policy’s coverage limit, the difference can be passed on to owners, in what’s called a loss assessment. Your HO6 policy may help offset this, but Sirotzki warns, “Most HO6 policies that I see only come with a limit of $ 1,000 for loss assessments.”


How much condo insurance do you need?


Condo owners may have a hard time deciding how much coverage to buy, partly because the distinctions between what owners cover and what associations cover can be tricky.


If your unit has a “bare wall” or “wall studs in” policy, you’ll need more comprehensive insurance. According to Foray, an agent will consider “the square footage of your unit, how many bedrooms and bathrooms you have, if you have a basement – and if so – whether or not it’s finished,” among other factors.


You should also check your master policy’s coverage for additions and alterations to the original structure, like new countertops or lighting fixtures – both those you’ve made and those made by previous owners. If you have an “original specification” policy, you’ll need to factor their replacement cost into your coverage estimate.


Next, decide how much personal property coverage you need.What counts toward the limit? Sirotzki advises,“If you were to turn your unit upside down, whatever falls out is your personal property.”


If you already have personal property coverage through a renters or homeowners policy, you may have done these calculations, but it’s wise to get an updated number occasionally. Many insurance company websites have calculators that can help. Sirotzki recommends adding a replacement cost endorsement, which will pay for new items if yours are damaged, not their depreciated value.


The bottom line


Unfortunately, because state law and homeowners’ association by-laws differ from case to case, it’s difficult to make blanket recommendations about condo policies. Having an expert on your side helps. For this reason, Hyatt says, “We recommend coverage decisions be made only through consultation with a licensed independent insurance agent.”


If you’re not sure where to start, Foray suggests contacting your association’s insurance agent, if you don’t have one of your own. She emphasizes, “Make sure you work with someone who’s familiar with insuring condominium units.”


Condo owner photo via Shutterstock.