Consumption and Real Estate
HO6 the condo owners insurance?
Question : HO6 the condo owners insurance?
I the HO6 condo owner insurance a new thing now? i had never heard of it. is it a requirement mandated by law? my refinance didn’t go through because i don’t have this insurance. are insurance companies finding new ways to scam people now? real frustrating…
thanks
ho6 insurance
Best answer:
Answer by mbrcatz
HO6 has been around, oh, maybe 30 years or so – maybe longer.
There’s no law that EVER requires you to carry homeowners insurance, but it’s dumb not to, unless you’re filthy rich and don’t mind if the building burns and all your stuff in it, and the association policy has lapsed.
Never trust anyone else – not the condo association, not your friend, no one – to take care of YOUR financial interests. If you can’t be bothered to insure yourself, don’t bet that anyone else will cover your losses.
It is a new requirement under Fannie May that you have to have coverage for the inside of your unit. The condo association’s insurance only covers the structure and common areas. I’m in the process of refinancing and was just struck with this new rule.
Insurance coverage for your personal property and liability is always a good idea. However it wasn’t previously a lender requirement.