Condominium Insurance (HO-6)

Protection for rental and seasonal condominiums.

Many carriers write HO-6 coverage for full-time owner occupancy, but few accept rental or seasonal condominiums. American Modern fills that gap with a HO-6 program that is tailored to a full-time or a part-time seasonal unit. How else are we different? We accept properties that are titled to a LLC, in a high-rise, even shared by one family. We also extend liability coverage to a property manager who oversees the property on the owner’s behalf.

** We now accept owner occupied condominiums in California.


Eligibility

  • Rental and seasonal occupancy only (owner occupancy in California)
  • No age limit on building
  • Well maintained community and unit
  • High rise building permissible
  • Unit can occupy no more than three floors
  • Title can be held by an LLC or one family, but no multi-family ownership

Key Coverages

Named peril protection

The policy covers those causes of loss listed by name in the policy documents (fire, lightning, wind, hail, explosion, and others), plus theft, vandalism and snow weight.

Loss settlement

In the event of a total loss, we will pay the unit’s replacement, and partial losses are repaired. Personal property can be issued for its actual cash value (ACV), which deducts depreciation, or for its
replacement cost.

Premises liability

If someone is injured in the home, or if the policyholder accidentally injures someone
or damages property while they are away from home, the policyholder may be liable. $100,000 of coverage is included and can be increased.

Short-term and occasional rental

Rental terms under three months are accepted without surcharge, and a
seasonal occupancy can be occasionally rented.

 

Coverage details

Included Coverage
  • Named peril coverage – The policy covers those causes of loss listed by name in the policy documents (fire, lightning, wind, hail, explosion, and others), plus theft, vandalism and snow weight.
  • Loss settlement – In the event of a total loss, we will pay the unit’s replacement, and partial losses are repaired. Personal property can be issued for its actual cash value (ACV), which deducts depreciation, or for its replacement cost.
  • Premises liability – If someone is injured in the home, or if the policyholder accidentally injures someone or damages property while they are away from home, the policyholder may be liable. $100,000 of coverage is included and can be increased.
  • Short-term and occasional rental – Rental terms under three months are accepted without surcharge, and a seasonal occupancy can be occasionally rented.
  • Loss assessment – $1,000 is included to cover a special assessment from the association. Coverage can be increased.
Optional Coverage

• Theft of personal property
• Water backup and sump overflow
• Including property manager as additional insured
• Identity theft recovery assistance

FAQs
Q: What occupancies are available in the American Modern Rental/Landlord and Seasonal Condominium (HO-6) program?
A: Occupancies available are rental/landlord and seasonal.
 
Q: What is the target market for this program?
A: The Rental/Landlord and Seasonal Condominium (HO-6) program is designed to target both the long-term rental and seasonal property as well as short term rental condos located in vacation hot spots. The policy will be issued to the owner(s) of a condominium unit which is used exclusively for residential purposes.
 
Q: What perils are covered on the Rental/Landlord and Seasonal Condominium (HO-6) policy?
A: Condominium unit coverage is named peril.
 
Q: What claims settlement options are available on the Rental/Landlord and Seasonal Condominium (HO-6)?
A: In California, Colorado, Illinois, Nevada, and Washington Coverage A is settled at replacement cost and Coverage C at ACV (replacement cost optional). In Texas, Coverage B is settled at ACV (replacement cost optional).
 
Q: What is the minimum coverage limit for the Rental/Landlord and Seasonal Condominium (HO-6) program?
A: Minimum coverage limit for this program is $1,000. Refer to the Condo Association’s Master Policy to determine adequate coverage limit.
 
Q: What is the maximum Coverage A/B value limit for the Rental/Landlord and Seasonal Condominium (HO-6) program?
A: Maximum value limits vary by state: $500,000 in Colorado; $300,000 in California; $500,000 in Illinois, $200,000 in Nevada; $400,000 in Texas; $500,000 in Washington. Please refer to your state-specific program manual in the modernLINK eForms library.
 
Q: Is personal property covered on this form?
A: Yes. Personal property coverage is named peril with an actual cash value settlement, but you have the option of selecting replacement cost.
 
Q: Is liability covered on this form? If so, how is it covered?
A: Premises liability is included in the program. In California, Colorado, Illinois, Nevada and Washington, $100,000 is included with an option to increase up to $500,000. In Texas, $25,000 is included with an option to increase up to $500,000.
 
Q: What deductibles are available?
A: In California, Colorado, Illinois, Nevada, and Washington, the standard deductible is $500, with the option of increasing up to $5,000. In Texas, the included deductible is 1% all peril with a $500 minimum and an optional increase to 2%.
 
Q: Is Loss Assessment included?
In California, Colorado, Illinois, Nevada, and Washington, the standard deductible is $500, with the option of increasing up to $5,000. In Texas, the included deductible is 1% all peril with a $500 minimum and an optional increase to 2%.
 
Q: What protection classes are eligible in this program?
A: Condominiums in protection classes 1-10 are eligible.
 
Q: What is the maximum age for condominiums in this program?
A: There is no age limit in this program.
 
Q: Are there special considerations/requirements in the Rental/Landlord and Seasonal Condominium (H0-6) program?
A: Yes. Firewalls, dead bolt locks and security lighting are required.

Additionally, we strongly recommend you contact the community’s insurance agent to understand the coverage purchased to protect the buildings and also contact the community’s manager to understand the owner’s responsibilities and any insurance requirements specified in the governing documents.

Q: Do you accept condominiums in high rise buildings?
A: Yes

Q: How many stories can the unit be?
A: We accept up to 3 stories in a unit.
 
Q: Can a property manager handle rentals and oversee the unit?
A: Yes
 

Program details vary by state. For specifics, please log in to modernLINK and consult the program manual for specifics located under the eForms tab.