HO3 vs. HO6
insurance.

HO3 — Single-Family Homes

An HO3 policy is the standard form for single-family homes. It covers the dwelling on an open-perils basis. Most mortgage lenders require HO3 or equivalent coverage for single-family home purchases.

• Standard policy for single-family homes
• Open-perils coverage for dwelling
• Required by most mortgage lenders for SFH

HO6 — Condo Unit Owners

HO6 covers condo unit interiors — walls-in — plus personal property and liability. Lenders financing condos require HO6 in addition to verifying the HOA master policy.

• Covers condo unit interior (walls-in)
• Personal property and liability coverage
• Lenders verify both HO6 and HOA master policy

Why It Matters for Jumbo Borrowers

For luxury condo purchases, lenders review both the individual HO6 policy and the association's master policy for adequacy. Gaps in coverage can delay closing.

• Lenders review individual and master policy
• Coverage adequacy affects loan approval
• Work with insurance agent early in the process

The one-sentence difference

An HO-3 policy insures a house — structure and dwelling from the studs out, plus contents and liability — while an HO-6 policy insures a condominium interior — typically from the walls in — because the building's master policy covers the structure and common elements. Which one you need is determined entirely by what you're buying: single-family homes and townhomes with fee-simple structure ownership take HO-3; condo units take HO-6 layered under the association's master policy.

Lenders enforce the match: your mortgage will require an HO-3 with dwelling coverage sufficient for replacement cost on a house, or an HO-6 with adequate interior ("walls-in") coverage — commonly 20% of the unit's value or a lender-set figure — on a condo.

The HO-6 details condo buyers miss

• Master-policy type matters: "all-in" master policies cover interior finishes as originally built, letting your HO-6 run lighter; "bare-walls" master policies leave everything inside the drywall to you — your HO-6 must be sized accordingly. The condo docs say which.
• Loss assessment coverage is the sleeper: when the association levies owners for a master-policy deductible or shortfall (hurricane deductibles in Florida can be enormous), this rider pays your share — cheap and essential here.
• Flood is separate for both policy types: the master flood policy covers the building; your contents and improvements need your own flood coverage in mapped zones.
• Wind deductibles in coastal Florida run as percentages of coverage, not flat dollars — read yours.

On jumbo condo purchases, lender review extends to the master policy itself: inadequate association coverage can hold up an otherwise clean approval.

Why your lender cares — and budgeting the premium

Insurance premiums enter your qualifying payment dollar for dollar, and in coastal Florida they are large enough to move approvals: the difference between an inland HO-3 and a barrier-island HO-3 with wind and flood can be four figures monthly. Get real quotes — not estimates — as early as the pre-approval stage, and on condos, request the master policy declarations with the condo docs so both your HO-6 sizing and the lender's project review proceed without surprises. We flag insurance early on every coastal file because it is the most common late-stage deal-mover in this market. Licensed broker, NMLS# 1967971.

Quick answers

Does my HO-6 cover special assessments after a hurricane?

Only through loss-assessment coverage — the rider that pays your share of association levies. In coastal Florida it is arguably the most valuable line on the policy.

Will lenders check my HO-6 amount?

Yes — walls-in coverage must meet the lender's minimum, commonly tied to unit value or a set figure. Underinsuring stalls closings.