If you are shopping for homeowners insurance or condo insurance in Fullerton or anywhere in California, you may hear the terms HO-3 and HO-6 policies.
Many people are confused about the difference between the two, but choosing the correct policy is extremely important to make sure your home and belongings are properly protected.
At Starwest Insurance Services, we help homeowners and condo owners understand exactly what type of coverage they need.
What Is an HO-3 Policy?
An HO-3 policy is the standard homeowners insurance policy designed for single-family homes.
This policy typically covers:
- The home structure
- Roof and walls
- Attached garage
- Personal belongings
- Personal liability
- Additional living expenses if the home becomes uninhabitable after a covered loss
An HO-3 policy usually protects the home on an “open peril” basis, meaning the policy covers all causes of loss unless specifically excluded.
Common HO-3 Claims
Typical claims under an HO-3 policy include:
- Fire damage
- Pipe burst and water damage
- Wind damage
- Theft
- Vandalism
- Liability claims from injuries on the property
If you own a detached home in places like Fullerton, Irvine, or Huntington Beach, an HO-3 policy is usually the correct type of homeowners insurance.
What Is an HO-6 Policy?
An HO-6 policy is commonly known as condo insurance.
This policy is designed for condo owners because the condo association’s master policy usually covers the exterior building structure and common areas.
An HO-6 policy generally covers:
- Interior walls
- Flooring
- Cabinets
- Countertops
- Personal belongings
- Liability protection
- Loss assessment coverage
- Improvements and upgrades inside the condo unit
What Does the HOA Cover?
Most condo associations carry a master insurance policy that covers:
- Roof
- Exterior walls
- Common hallways
- Pools
- Clubhouse areas
- Shared structures
However, every HOA is different. Some associations only insure the “bare walls,” while others include original fixtures and cabinetry.
That is why reviewing the HOA master policy is extremely important.
Why Choosing the Right Policy Matters
One of the biggest mistakes we see is condo owners thinking the HOA policy covers everything inside their unit.
Unfortunately, that is usually not true.
Without the right HO-6 coverage, you could end up paying out of pocket for:
- Water damage inside your condo
- Flooring replacement
- Cabinet damage
- Interior repairs
- Liability claims
- HOA loss assessments
Similarly, homeowners with HO-3 policies need to make sure they have enough dwelling coverage to rebuild the home properly, especially with rising construction costs in California.
Need Help Choosing Between HO-3 and HO-6 Insurance?
At Starwest Insurance Services, we help homeowners and condo owners throughout Orange County find the right coverage for their needs and budget.
We can review your current policy, explain your HOA master policy, and help you avoid dangerous coverage gaps.
Text me at 714-867-7799 or call the office 714-893-7271.