Navigating condo insurance these days can be tricky. Knowing what rebuild coverage you’ll need on your condo insurance policy—also known as HO6 or “walls-in”—starts with the insurance section of the Covenants, Conditions and Restrictions (CC&Rs) document that governs the homeowners association (HOA).
The CC&Rs outline what the HOA is responsible for fixing or replacing if there’s damage to your unit. They’ll also indicate whether or not the HOA’s coverage includes “betterments and improvements”—things like flooring, cabinets, lighting, doors, and other improvements inside your unit—or if it’s up to you to make sure your HO6 policy covers them.
If the HOA isn’t responsible for betterments and improvements, your HO6 policy should include sufficient rebuild coverage. You’ll want to have at least $100 per square foot in coverage in San Francisco, according to Jeff Jensen from Larson Family Insurance.
It’s generally more cost effective to insure unit interiors with an HO6 policy than through the HOA’s commercial policy.
Pro tip: Be careful about waiving the insurance contingency in your purchase contract unless you’ve done due diligence up front. Many insurers are becoming more selective about issuing HO6 policies, and those that do offer coverage will need to review the HOA’s policy before they greenlight your condo policy.