
Condo insurance, often called an HO-6 policy, protects your property, belongings, and personal liability for incidents within your unit. The average cost for condo insurance in Maryland hovers around $642 annually. If you’re buying a condo for the first time, it’s essential to recognize what isn’t included in your policy, as these gaps could leave you vulnerable to unexpected expenses. Learn about your options for condo insurance when living in Maryland.
5 Things to Know About Condo Insurance
- Condo insurance (HO-6) in Maryland covers personal property, liability, and risks such as fire and theft but excludes floods and special assessments.
- The average annual cost of condo insurance in Maryland is approximately $642, with monthly premiums averaging about $53.
- Standard coverage typically includes $60,000 for personal property and recommends liability coverage of around $300,000.
- Standard policies usually do not cover flood damage, so reviewing the HOA’s master policy is essential for flood risks.
- Comparing quotes from different providers is crucial, as annual rates can range from $300 to $892 based on coverage and individual circumstances.
What Is Condo/HO6 Insurance?
HO-6 insurance is a home insurance policy that applies to individual units within a condo community. Due to the condo ownership structure, HO-6 insurance only applies to the area within your unit.
This type of condo insurance policy covers personal property and safeguards your belongings, such as furniture and electronics, from various risks. It also includes liability coverage, which protects you against claims for injuries or damages that may occur within your unit.
Personal Condo Insurance vs. Condo Master Policy
The condo master policy typically covers the building’s structure and common areas and is funded by homeowners association (HOA) dues. Even though the master policy exists, homeowners associations usually require you to maintain personal condo insurance to guarantee property protection and liability protection.
This insurance is vital since the master policy doesn’t cover personal items or damages inside your unit.
What Is Covered by Condo Insurance?
When considering buying a condo in Maryland, it’s crucial to know what’s covered by insurance. This type of policy typically protects you against fire damage, theft of valuables, and water damage, ensuring your belongings are safeguarded.
Fire Damage
Condo insurance in Maryland can be an essential safety net for your belongings in the event of fire damage. Your policy typically covers personal property, such as furniture and electronics, up to a specified limit.
Fire damage claims usually involve a deductible, which you must pay before receiving compensation. Always review your policy for specific exclusions, as certain causes like arson or negligence may not be covered, impacting your condo insurance cost.
Valuables Stolen and Damage Caused in Burglary
Your condo insurance generally covers the loss of personal property due to theft, including valuables stolen like electronics. To guarantee adequate personal property coverage, it’s essential to maintain a home inventory and accurately evaluate the value of your belongings in case of theft.
Water Damage
Condo insurance typically covers water damage from incidents like burst pipes or internal leaks.
However, it’s crucial to recognize that standard policies don’t cover flood damage; for that, you’ll need a separate flood insurance policy, especially if you live in a flood-prone area. Additionally, coverage for sewer backups often requires extra endorsements or separate policies, as they’re not included in standard condo insurance.
Liability For Accidents and Injuries
Liability coverage in a condo insurance policy protects you if someone is injured in your unit or if you accidentally cause damage to someone else’s property, covering legal fees, medical expenses, and settlements up to your policy limits.
If you’re found responsible in court, your policy may help pay for the assigned settlement. This coverage may also extend to incidents occurring off your property, guaranteeing you’re protected wherever you go.
What Isn’t Covered

When considering condo insurance in Maryland, knowing what isn’t covered by your policy is crucial. Regular wear and tear, earthquake damage, and flood-related losses typically fall outside of standard coverage, leaving you vulnerable. Additionally, special assessments imposed by your condo association may not be included.
Regular Wear and Tear of Unit and Belongings
Standard policies typically exclude damages resulting from neglect or lack of proper upkeep, leaving you to handle these issues independently.
Items that deteriorate over time, like appliances and flooring, fall under your maintenance responsibilities and aren’t included in your coverage.
Additionally, damage from mold caused by humidity or poor ventilation is usually excluded unless specific provisions are added to your policy.
Earthquakes
Earthquakes are often deemed high-risk events requiring additional coverage. Additionally, master policies usually don’t include earthquake coverage, either.
People living in earthquake-prone areas may consider getting additional coverage. The cost of this insurance can vary considerably based on your location and the building’s structural integrity, often resulting in higher premiums in certain areas.
Flood Damage
Most condo insurance policies exclude flood damage because flooding is classified as a high-risk, widespread event that standard policies are not designed to cover. Instead, flood insurance must be purchased separately, either through the National Flood Insurance Program (NFIP) or private insurers.
This additional policy specifically covers damage caused by rising water, such as from heavy rain, storm surges, or overflowing bodies of water. Condo owners in flood-prone areas are often required by lenders to obtain flood insurance, while those outside high-risk zones can still opt for it to protect against unexpected flooding events. Without this coverage, flood-related damages would need to be paid out-of-pocket.
Special Assessments
Standard condo insurance policies usually don’t cover special assessments levied by homeowners associations (HOAs) for repairs or improvements to common areas. This can leave you financially responsible for these unexpected costs, especially if the repairs aren’t included in the HOA’s master policy.
How Much Does Condo Insurance Cost in Maryland?
The average cost of condo insurance in Maryland ranges from $300 to more than $600 per year. Most policies provide coverage for personal property of around $60,000 and liability of $300,000, often with a $1,000 deductible.
The cost of condo insurance is influenced by factors such as the unit’s location, the building’s construction, the value of your belongings, coverage limits, deductibles, and any additional risks like natural disasters in the area. Additionally, where you live plays a vital role, some Baltimore suburbs have lower rates, while Baltimore City is typically higher.
Frequently Asked Questions
What is the 80% rule in insurance?
The 80% rule in insurance means you must insure your property for at least 80% of its replacement cost. If you don’t, your claim payout could be reduced proportionally, impacting your financial protection.
Is condo insurance cheaper than home insurance?
Condo insurance in Maryland is generally cheaper than home insurance because it covers fewer risks. Unlike home insurance, which must protect the entire structure and property, condo insurance typically covers only the unit’s interior and personal belongings.
In contrast, the condo association’s master policy insures the building’s exterior and shared spaces. However, the exact cost depends on factors such as location, value of belongings, and coverage limits.
Is condo insurance required in Maryland?
Insurance isn’t legally required for condos in Maryland, but lenders usually demand it if you have a mortgage. Additionally, most condo associations will require you to have condo insurance.
Secure Insurance for Your Maryland Condo
Condo insurance in Maryland, or HO-6, protects personal property and provides liability coverage. While it covers various risks, it’s important to recognize the exclusions, such as flood damage and special assessments. You should carefully assess your coverage needs in relation to your homeowners association’s master policy, especially if you’re a first-time condo buyer. By doing so, you can make certain you’re adequately protected against potential financial losses.