Home > Uncategorized > Master condo insurance policy vs. H0-6 insurance policy

Master condo insurance policy vs. H0-6 insurance policy

Until recently, lenders did not require condominium purchasers (borrowers) to obtain property insurance coverage beyond that provided in the condominium association’s master policy. That all changed last year due to new condominium lending guidelines imposed by Fannie Mae (FNMA) and FHA, which now require purchasers to obtain H0-6 insurance policies.

In general, the condominium master insurance policy only covers “from studs out;” it does not cover “wall in.” For example, the master policy would cover such things as the roof, exterior, common areas, and elevators. It does not cover such things as flooring, wall coverings, and other improvements made within the unit. Nor does it cover the unit owner’s personal belongings or protect the unit owner against personal liability occurring within the unit.

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