When shopping for homeowners insurance, you may have come across terms like HO3 and HO6. While they sound similar, these two policy types cover very different types of properties. Choosing the right one depends entirely on whether you own a house or a condo — and what parts of the property you’re responsible for.
Let’s break down the difference so you can choose the right protection for your home in Sacramento, California (or anywhere else you own property).
🏡 What Is an HO3 Policy?
An HO3 policy is the most common type of homeowners insurance for single-family houses.
It typically covers:
- Your dwelling (structure of the home) — including the roof, walls, floors, and foundation.
- Other structures — such as a detached garage, shed, or fence.
- Personal property — your belongings inside the home, like furniture, clothing, and electronics.
- Liability coverage — protects you if someone is injured on your property.
- Loss of use — covers living expenses if your home becomes uninhabitable after a covered loss.
An HO3 policy is sometimes called an “open perils” policy, meaning it covers your home for all causes of damage except those specifically excluded (like earthquakes, floods, or neglect).
🏢 What Is an HO6 Policy?
An HO6 policy is designed specifically for condo owners.
It covers:
- Interior structures — the parts of your condo you own, such as drywall, flooring, cabinetry, and fixtures.
- Personal property — your belongings.
- Liability coverage — if someone is injured in your unit.
- Loss assessment — helps pay for shared property damage or liability that affects the condo association.
- Loss of use — temporary housing if your condo becomes unlivable after a covered loss.
Your condo association’s master policy typically covers the building’s exterior, roof, and shared areas, while your HO6 policy covers the inside of your unit.
🔍 How to Decide: HO3 vs. HO6
| Situation | Policy Type You Need |
|---|---|
| You own a single-family home and are responsible for the entire structure and land | HO3 |
| You own a condo unit and your HOA covers the building and common areas | HO6 |
| You rent your home or condo | Neither — you need a renters (HO4) policy |
💡 Example: Sacramento Homeowners
- Example 1: You bought a house in Elk Grove. You’re responsible for the roof, yard, and foundation — you need an HO3 policy.
- Example 2: You purchased a condo in Downtown Sacramento. The HOA maintains the exterior and common areas — you need an HO6 policy.
⚠️ Important Note: Check Your HOA’s Master Policy
If you own a condo, always ask for a copy of the HOA’s master insurance policy. Some policies are “walls-out” (cover everything outside your walls), while others are “walls-in” (cover drywall and fixtures).
Knowing this determines how much coverage you should include in your HO6 policy.
🧾 Bottom Line
The key difference between HO3 and HO6 is simple:
- HO3 = Homeowners Insurance for Houses
- HO6 = Condo Insurance for Unit Owners
If you’re not sure which policy fits your property — or how much coverage you really need — talk to a trusted local insurance agent. A quick review of your situation can ensure you’re fully protected without overpaying for unnecessary coverage.