H03 vs H06
Posted: 21 September, 2023
Making sure you have the correct and best home insurance policy can get overwhelming. I will go over the difference between H03 and H06 homeowners insurance, and how they work. An H03 policy insures single-family homes, while an H06 policy insures condos and some townhouses.
What is an H03 policy and what is an H06 policy?
An H03 policy will provide coverage for your home and personal property against several perils, including fire, theft and wind damage. While an H06 policy will protect you against damage to the unit itself and any personal belongings inside the unit.
What type of policy will I need?
If you live in a single-family home, in which you own the home plus the underlying land, then you will need an H03 policy. If you live in a condo or townhouse that belongs to a homeowner association, you will need an H06 policy.
FAQ:
Do I need Homeowners Insurance?
Legally, you might not need it. If you have a mortgage, your lender will require it.
Why is my replacement cost different than my home market value?
The replacement cost of your home may be more than its market value. Make sure you have enough coverage to rebuild your home after a disaster.
How to lower my insurance premium?
No one wants to pay more for insurance. Make sure to reach out to an Emilan Premium Homeowner insurance specialist to make sure you have all the credits and discounts applied to your policy.
| Category | HO-3 | HO-6 |
|---|---|---|
| Insured Property | Standard or single-family homes | Condo units and some townhomes |
| Required? | Required by mortgage lender | Required by mortgage lender |
| Reimbursement | Actual cash value | Actual cash value |
| Dwelling Coverage | Open peril | Varies |
| Personal Property Coverage | Named peril | Named peril |
| Cost | Typically, higher than HO-6 | Typically, cheaper than HO-3 |
Written by: Premium Emilan