HO-6 Insurance Basics for Orange Beach Condo Buyers

Buying a condo in Orange Beach should feel exciting, not overwhelming. Yet insurance questions often pop up fast: What does your association cover? What falls on you? And how do hurricanes and flood risk change the picture? With a clear HO-6 plan, you can protect your finishes, belongings, and budget without guesswork. This guide explains what HO-6 covers, how it pairs with your condo association’s master policy, and the coastal extras that matter in Baldwin County. Let’s dive in.

What HO-6 covers

Interior improvements and fixtures

Your HO-6 typically covers the interior parts of your unit you are responsible for under your condo documents. That often includes drywall, flooring, built-in cabinetry, countertops, and similar finishes. If the master policy is “bare walls,” you may need higher limits for these items.

Personal property

Furniture, electronics, clothing, and most belongings inside your condo are covered under personal property. You can choose actual cash value or add a replacement cost endorsement so you can replace items at today’s prices. High-value items may need to be scheduled.

Liability and medical payments

If someone is injured inside your unit, personal liability coverage can help with bodily injury or property damage claims, including legal defense. Medical payments to others offers a small limit for minor guest injuries, regardless of fault.

Loss of Use (ALE)

If a covered loss makes your unit uninhabitable, Additional Living Expense can reimburse temporary living costs such as lodging and meals while repairs are made.

Loss Assessment

If the association issues a special assessment due to a covered loss that exceeds the master policy limits or is tied to the association’s deductible, Loss Assessment coverage may help pay your share, up to your policy limit.

How it fits with the master policy

Your HO-6 fills gaps left by the association’s master policy. To set the right limits, you must know what the master policy covers.

Common master policy types

• All-in or walls-in: Association coverage may extend to some interior elements and fixtures. You still insure your belongings and any improvements not covered by the association.
• Bare walls or walls-out: Association covers the structure and common elements. You insure everything inside your unit’s interior boundary, including finishes and fixtures.

Check your condominium declaration, bylaws, and the association’s Certificate of Insurance for the exact responsibilities. Those documents define where your coverage should begin.

Orange Beach coastal factors

Wind and hurricane deductibles

On the Gulf Coast, insurers often apply separate wind, hurricane, or named-storm deductibles. These can be percentage-based, such as 1 to 5 percent of the insured dwelling limit. Your association may have a separate named-storm deductible at the master policy level too, and that amount can be passed through as a special assessment to unit owners.

Flood insurance is separate

Standard HO-6 policies exclude flood, including storm surge and rising water. If your condo is in a FEMA Special Flood Hazard Area, lenders typically require flood insurance. Even outside mapped zones, coastal properties can flood. Ask for a flood quote early, and consider both building and contents where applicable.

Code upgrades and older buildings

After a storm, repairs might need to meet current building codes. Ordinance or Law coverage helps pay for code-required upgrades to the damaged portion, which can be important in older coastal buildings.

Association deductibles and reserves

Coastal associations may carry large named-storm deductibles. If reserves are thin, bigger assessments are more likely after a major loss. Reviewing the association’s financials and reserve study can help you set the right Loss Assessment limit.

Set smart limits and endorsements

Improvements and betterments

Match this limit to the cost of replacing your interior finishes and upgrades you are responsible for. Review your declaration to confirm what the association covers versus what you must insure.

Personal property replacement cost

Add the replacement cost endorsement so you can replace items at current prices rather than receiving a depreciation-adjusted payout. Inventory valuables and consider scheduling high-value items.

Loss Assessment limit

Default limits can be low. Along the Gulf Coast, consider higher Loss Assessment limits in light of potential named-storm deductibles and the association’s reserves.

Sewer and water backup

Backups and water intrusion are frequent claim sources. A sewer or backup of water endorsement can add a layer of protection for interior damage.

Liability and umbrella

Liability limits of $300,000 to $500,000 are common. For broader protection, consider a personal umbrella policy.

Flood policy

Because flood is excluded by HO-6, consider a separate flood policy through the NFIP or the private market. Ask for quotes that align with your lender’s requirements and your risk tolerance.

Buyer checklist before closing

Documents to request

• Condo declaration, bylaws, and rules and regulations
• Master policy or Certificate of Insurance with declarations page
• Deductible details for wind, hurricane, and named storms, including whether they are per-building or association-wide
• Recent meeting minutes, current financials, and the latest reserve study
• Any records of prior major claims or pending litigation
• Any elevation information to help evaluate flood risk

Questions for the association or management

• What master policy type is in force, and what interior items does it cover?
• What are the policy limits and deductibles, especially for named storms?
• Does the master policy include Ordinance or Law and Loss Assessment coverage?
• How is the master deductible allocated after a loss?
• How much is in reserves, and when was the last reserve study?
• Have there been recent hurricane-related claims or assessments?

Questions for your insurance agent

• Do I need a separate wind or hurricane endorsement? How are named-storm deductibles handled?
• What interior improvements and betterments are covered? Should I schedule valuables?
• How much Loss Assessment coverage do you recommend based on the association’s deductibles and reserves?
• Do I need flood insurance, and should I consider NFIP or private flood options?
• What deductible options are available, and how do they affect premium?
• Which carriers have strong coastal claims handling and local adjuster support?

Real-world claim scenarios

Hurricane damages the roof and structure

The master policy typically addresses exterior repairs, subject to its deductible. If a large named-storm deductible is assessed to unit owners, your Loss Assessment coverage may pay your share, up to your limit. Interior water damage may be split between policies depending on the master policy wording.

Storm surge floods floors and contents

Flooding from storm surge is excluded by HO-6. Without a separate flood policy, structural and contents losses from flood are out-of-pocket if not covered by the master policy.

Wind-driven rain causes interior damage

Coverage depends on who insures the interior finishes under the master policy. Your HO-6 can cover what the master policy does not, including your belongings and any insured improvements and betterments.

Special assessments after a major storm

If reserves are low and the association issues an assessment related to a covered property loss, your Loss Assessment coverage can help with your portion, subject to policy terms and limits.

Claims tips for coastal owners

• Photograph your unit and finishes before closing and update regularly.
• Keep master policy details and insurer contacts handy.
• After a storm, notify the association and your insurer promptly and follow the claim instructions.

Shop smart and reduce risk

• Work with an insurance agent familiar with Baldwin County condos and coastal carriers.
• Compare multiple quotes and ask for clear explanations of wind, hurricane, and named-storm deductibles.
• Bundle when it makes sense, but prioritize claims handling reputation over price alone.
• Document unit improvements and keep receipts. Consider professional appraisals for scheduled valuables.
• Support or request association-level mitigation, such as impact windows or reinforced roofing where applicable, and use water sensors inside your unit.

Your next step

A strong HO-6 plan protects the condo lifestyle you came here for. If you want help reviewing association documents, understanding master policy gaps, and aligning your HO-6, flood, and coverage limits with your goals, let’s talk. Work With Charlie for clear, concierge guidance on Orange Beach condos.

FAQs

What does HO-6 insurance cover for Orange Beach condos?

• It typically covers interior improvements you are responsible for, your personal property, personal liability, Additional Living Expense, and Loss Assessment, depending on your policy and limits.

How does my HO-6 interact with the HOA master policy?

• Your HO-6 fills gaps left by the master policy; the condo declaration and insurance certificate define what the association covers versus what you must insure.

Do I need flood insurance for an Orange Beach condo?

• If your property is in a FEMA Special Flood Hazard Area, a lender will usually require it; even outside mapped zones, coastal properties can flood, so consider a flood policy.

Are hurricane or named-storm deductibles common here?

• Yes. Coastal properties often have separate percentage-based deductibles for wind, hurricanes, or named storms at both the unit and association policy levels.

What is Loss Assessment coverage and why is it important?

• It helps pay your share of special assessments related to a covered property loss, which can be crucial when associations carry large named-storm deductibles.