You might have HOA insurance coverage when buying a condo, but you have to purchase your own “walls-in” coverage during escrow.
Lenders require what’s known as HO-6 insurance. Otherwise known as hazard or individual unit coverage, HO-6 insurance provides personal property and liability coverage for whatever happens within your unit’s walls.
Yes, a portion of your monthly HOA dues does pay for building insurance and common area coverage. But that building policy doesn’t cover anything that might happen inside your unit.
HO-6 coverage costs anywhere between $600-$1,000 annually, and will end up being part of your closing costs. The provider will typically need to know what year the building was constructed; the number of stories and units in the property; unit square footage and roof type. Your agent can get you started by giving you all these details so you know what to respond when asked by the insurance agent.