One of the most common questions condo owners ask is:
“How much dwelling coverage (Coverage A) should I carry on my HO-6 condo insurance policy?”
The answer depends on your HOA’s master policy and the cost to rebuild everything you are responsible for inside your unit.
Start With the HOA Master Policy
Ask for a copy of the HOA’s master insurance policy and determine whether it is:
Bare Walls Coverage
The HOA insures only the building structure and common areas.
You may be responsible for:
- Drywall
- Flooring
- Cabinets
- Countertops
- Fixtures
- Built-in appliances
- Interior improvements
In this situation, you typically need higher HO-6 dwelling coverage.
Walls-In (All-In) Coverage
The HOA policy may insure much of the original interior construction.
You may only need coverage for:
- Upgrades and improvements
- Betterments
- Custom flooring
- Renovated kitchens
- Renovated bathrooms
In this situation, you may need less HO-6 dwelling coverage.
General Rule of Thumb
For many California condos:
| Condo Type | Typical Coverage A |
|---|---|
| Small condo, minimal upgrades | $25,000 – $50,000 |
| Average condo | $50,000 – $100,000 |
| Upgraded condo | $100,000 – $200,000+ |
Many HO-6 policies are written with:
- $50,000
- $75,000
- $100,000
- $125,000
of dwelling coverage.
Consider Current Rebuilding Costs
A good estimate for interior reconstruction can range from $100 to $200+ per square foot, depending on finishes and upgrades.
Example:
1,200 sq. ft. condo
- Basic finishes: ~$120,000 interior value
- Upgraded finishes: $150,000-$250,000+
If you’ve remodeled your kitchen, bathrooms, flooring, or installed custom cabinetry, your dwelling coverage should reflect those improvements.
Don’t Forget Loss Assessment Coverage
Many condo owners focus on inside walls coverage and overlook Loss Assessment Coverage.
This helps if the HOA assesses owners for a covered loss that exceeds the master policy limits or deductible.
In California, I often recommend at least:
- $25,000
- $50,000
- $100,000 (if available)
depending on the HOA and property value.
My Recommendation
For most Orange County and Los Angeles County condos:
✅ Start with $75,000-$100,000 of Coverage A.
✅ Increase it if you’ve upgraded the unit.
✅ Review the HOA master policy before choosing limits.
✅ Make sure your personal property, liability, loss of use, and loss assessment limits are adequate.
Need Help Determining the Right Amount?
I can review your HOA master policy and help determine an appropriate dwelling limit for your specific condo.
James Cq Banh
Starwest Insurance Services
📞 Office: 714-893-7271
📱 Text: 714-867-7799
No Broker Fees Since 1995