Insurance Guide
HO3 vs. HO6
insurance.
The difference between HO3 and HO6 insurance matters in the mortgage process. Lenders require different coverage depending on the property type.
The difference between HO3 and HO6 insurance matters in the mortgage process. Lenders require different coverage depending on the property type.
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.
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.
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.
A licensed MLO will review your situation and identify the right programs. NMLS# 1967971 · FL, TN, SC, CO, TX.
All content on this page is for informational and educational purposes only and does not constitute financial, legal, or mortgage advice. Loan programs, qualification requirements, and availability are subject to change without notice and vary by lender, borrower profile, property type, and market conditions. All loans are subject to credit approval. Not a commitment to lend. Speak with a licensed Mortgage Loan Originator for guidance specific to your situation. New Century Mortgage LLC · NMLS# 1967971 · Equal Housing Lender · NMLSConsumerAccess.org