A burst pipe two floors up, a wind-driven storm, or a big association deductible can turn a great River North condo day into an expensive headache. You work hard for your home and everything in it, so you want coverage that actually fits your building and lifestyle. In this guide, you’ll learn how HO-6 condo insurance works with your association’s master policy, which endorsements matter most in Chicago, and a simple checklist to make sure you’re protected when buying, selling, or renewing. Let’s dive in.
What HO-6 insurance covers
HO-6 is the condo unit-owner policy that protects your unit’s interior, your belongings, and your personal liability. Typical buckets include interior dwelling coverage, personal property, loss of use, and liability. You can also add endorsements to close common gaps. For a quick overview of what’s included, see this HO-6 guide.
Loss of use, sometimes called Additional Living Expense, helps with hotel and living costs if your unit is uninhabitable after a covered loss. Learn more in Travelers’ HO-6 explainer.
How the master policy and your HO-6 work in Illinois
Your building carries a “master policy” that insures the structure and common elements. Your HO-6 fills the gaps for your unit and your personal risk. In Illinois, the Condominium Property Act sets minimum insurance rules and generally treats the association’s policy as primary for losses it covers.
Master policy types to know
- Bare walls (walls out): The association insures up to the unfinished interior surfaces. You must insure everything inside your unit. See a plain-language overview of this setup here.
- Single-entity (walls in): The association usually covers original fixtures and finishes as delivered by the developer, not later upgrades. Get a Chicago-focused explainer from CooperatorNews.
- All-in: The association covers unit interiors including improvements and betterments. You still need HO-6 for personal property and liability. See a quick definition from Investopedia.
Tip: Before choosing limits, get the master policy declarations and your building’s recorded declaration. Identify the policy type, limits, and deductible so you know exactly what your HO-6 must cover.
Coverage to check on your HO-6
Interior dwelling and upgrades
Set a limit that reflects your finishes and built-ins. Replacement cost coverage is usually better than actual cash value for interiors and upgrades. See the difference in this coverage guide.
Personal property
Choose a contents limit that matches what you own. Consider scheduling jewelry, art, or other high-value items if standard limits are too low. A quick overview of contents and scheduling is in this HO-6 summary.
Loss of use
If a covered claim makes your unit unlivable, loss of use helps with temporary housing and related expenses. Review how it works in Travelers’ resource.
Personal liability
Typical limits start around 100,000 to 300,000 dollars. If you want higher protection, ask your insurance professional about umbrella coverage that sits over your HO-6.
Common River North gaps to close
Sewer and water backup
Chicago’s combined sewer system and intense storms can push water up through drains. Standard HO-6 policies often exclude this. Add a water backup endorsement sized to your risk. The City outlines the urban flooding context in its basement flooding guidance.
Loss assessment and big deductibles
Many high-rise associations carry large master policy deductibles to control premiums. If there’s a major building claim, the board may assess owners for a share of that deductible or uncovered costs. Default HO-6 loss assessment limits can be as low as 1,000 dollars. Many advisors suggest increasing to 50,000 dollars or more based on your building’s deductible and exposure. Read why this matters in this loss assessment article.
Flood near the river
Standard HO-6 policies exclude flood from overland or river sources. If maps show risk or your lender requires it, consider a separate flood policy through NFIP or private carriers. Check your exact address using FEMA’s Flood Map Service Center.
Ordinance or law costs
Bringing damaged areas up to current code can be expensive and is often limited or excluded without an endorsement. Learn why an ordinance or law endorsement can help in this HO-6 overview.
Quick checklist for buyers, sellers, and renewals
- Get the master policy declarations and your building’s recorded declaration and bylaws. Confirm policy type, coverage limits, and the master deductible. The Illinois rules that shape this are in the Condominium Property Act.
- Verify whether the master policy is primary for interiors and how “interior” is defined. If it is not all-in, increase your HO-6 interior dwelling limit to cover improvements and upgrades.
- Ask the board or manager about recent claims, the current master deductible, and any history of special assessments. Set your loss assessment limit to at least match a plausible single assessment for your building.
- Check the FEMA flood map for your exact address. If required by your lender or risk profile, add a separate flood policy. Use the FEMA map tool.
- Add endorsements that fit Chicago risks: water backup, ordinance or law, increased loss assessment, and replacement cost on contents and improvements.
- Inventory your unit: photos, receipts, contractor invoices. Store copies offsite or in the cloud and share with your insurer. See tips in this coverage guide.
- Confirm lender requirements. Many lenders want proof of HO-6 when the master policy does not cover interiors, and some use minimum coverage benchmarks. Verify the exact wording for your loan.
- On sale, provide the buyer with the master policy dec page and insurance info. Keep your HO-6 active through closing and document your upgrades for a smooth handoff.
Real-world River North scenarios
- A unit above you has a plumbing leak that damages your built-ins. If the master policy covers only common elements and original finishes, your HO-6 interior dwelling coverage pays to rebuild your finishes at replacement cost, subject to your limits.
- A major roof claim hits the association with a six-figure deductible. If the board assesses each owner, your loss assessment endorsement can cover your share up to the limit you selected.
- Heavy rain overwhelms drains and water backs up into your bathroom. A water backup endorsement can respond where a standard HO-6 would typically exclude the loss.
Work with a team that knows River North
Insurance language can be dense, but your choices are straightforward when you see how your building’s master policy and your HO-6 fit together. If you want help connecting the dots between policy details and your purchase or sale plan, reach out to K + D Homes. We know River North buildings and can coordinate the right questions with your association and insurance professional so you can move forward with confidence.
FAQs
What does an HO-6 cover for a River North condo?
- It typically covers your unit’s interior finishes, your personal property, your personal liability, and loss of use after a covered claim, with optional endorsements to expand protection; see this HO-6 guide for a breakdown.
How do I find my building’s master policy type?
- Ask your association or manager for the master policy declarations and the recorded declaration; compare language to these common types explained by CooperatorNews and Davis-Stirling.
Does HO-6 cover water coming up through drains?
- Standard HO-6 policies usually exclude sewer or drain backup unless you add a water backup endorsement, which is important in Chicago’s combined sewer system per the City’s basement flooding guidance.
How much loss-assessment coverage should I carry in a high-rise?
- Many owners increase limits to 50,000 dollars or more to match potential assessments from large master deductibles, as explained in this loss assessment article; choose an amount tied to your building’s deductible.
Do Chicago lenders require HO-6 for condos?
- Often yes if the master policy does not cover interiors; many lenders expect unit coverage that protects the collateral, so confirm your loan’s specific requirement and see general guidance in this condo insurance guide.