Condo Unit Owner Insurance (HO-6) in Illinois
Owning a condo comes with a unique insurance situation. Your condominium association carries a master policy that typically covers the building structure and common areas — but it stops at the walls of your unit. An HO-6 policy is designed specifically for condo unit owners, covering your personal property, interior improvements, and personal liability. Hollinger Insurance Services helps condo owners in Illinois understand exactly where their association's coverage ends and where their own policy needs to begin.
What the Association's Master Policy Doesn't Cover
Most condominium master policies are written on either an "all-in" or "bare walls" basis. A bare walls policy covers only the structure itself — the framing, common plumbing, and exterior. Everything inside your unit — flooring, cabinets, appliances, fixtures, and improvements — is your responsibility. Even an all-in master policy typically excludes your personal property and personal liability. Knowing what your association's policy covers is the first step, and we can help you read it.
Interior Improvements & Betterments
Many condo owners have upgraded their units with hardwood floors, custom cabinetry, granite countertops, or updated fixtures. These improvements are part of your unit and typically not covered by the master policy. An HO-6 policy with adequate dwelling coverage protects the cost to repair or replace these upgrades if they're damaged by a covered loss such as fire, water damage, or vandalism.
Loss Assessment Coverage
If your association's master policy has a large deductible, or if a covered loss exceeds the master policy limits, the association may pass a portion of those costs on to individual unit owners through a special assessment. Loss assessment coverage on your HO-6 policy protects you against your share of these unexpected costs — often for just a few dollars more per year.
Personal Liability Inside Your Unit
If a guest is injured inside your condo, your association's master policy generally won't cover your personal liability. Your HO-6 policy provides liability protection for incidents that occur within your unit, as well as coverage for legal defense costs if you're sued.
Water Backup & Special Assessments
Water damage from a backed-up drain or sump pump is one of the most common condo claims — and it's often excluded from basic policies. We make sure your HO-6 policy includes water backup coverage and review optional riders like special assessment and identity theft coverage that condo owners frequently need.
What's Typically Covered
- ✓Personal property (furniture, electronics, clothing)
- ✓Interior improvements & betterments
- ✓Personal liability
- ✓Medical payments to others
- ✓Loss of use (additional living expenses)
- ✓Loss assessment coverage
- ✓Water backup coverage
- ✓Building property (from the walls in)
- ✓Theft on and off premises
- ✓Identity theft protection (optional)
Frequently Asked Questions
How do I know if my association has a "bare walls" or "all-in" master policy?
Request a copy of the association's master policy declarations page and look for the coverage description. We can review it with you and identify exactly where your personal HO-6 policy needs to pick up.
How much personal property coverage do I need?
Take a rough inventory of your belongings — furniture, electronics, appliances, clothing, and valuables. Most condo owners have $30,000–$75,000 in personal property. High-value items like jewelry or art may require a separate rider.
What is loss assessment coverage and do I need it?
Loss assessment coverage pays your share of a special assessment levied by your association following a covered loss that exceeds the master policy. Given that assessments can run into the thousands of dollars, this coverage is highly recommended and typically costs very little to add.
Does my HO-6 policy cover damage I accidentally cause to a neighbor's unit?
Yes — if water from your unit damages a neighbor's property, your HO-6 liability coverage can help cover the cost. This is one of the most important reasons condo owners need their own policy.
Connect with Hollinger Insurance Services
Every condo association is different. Share your master policy with us and we'll make sure your HO-6 fills in the gaps — no guesswork, no overlap.