How do you determine policy limits on a HO 6 policy?

Answer 1

The simple answer to the question as phrased is that the policy limits will normally be stated on the Declarations Page of the policy. The policy limits reflect the maximum that the insurer is obliged to pay for the various categories of losses covered by the policy, assuming that the coverage applies to a given loss and all other conditions are met. However, before concluding that the dollar amounts on the Declarations are inviolate, it is important to review the entire policy to determine if there are any sub-limits, exceptions, or exclusions that are applicable to the loss. You must also factor in the policy deductible, which is typically also stated on the Declarations, in order to get a full idea of the available benefits.

An HO-6 is the abbreviated name given to a homeowners-type insurance policy form that is used to insure a condominium, as distinct from a free-standing, single family home. By the nature of those types of structures and the ownership of them, the condominium association typically maintains coverage on the structure, such that, for example, were a hurricane to destroy the roof, the association's policy would be triggered. However, a HO-6 (purchased by the owner of the unit) provides coverage for stated causes of loss when there is damage to certain contents or otherwise to the interior of the unit.