ANSWER
A condo near Arizona State University needs an HO-6 condo policy for your unit, while the HOA’s master policy covers the building and common areas. Flood is separate: standard homeowners insurance does not cover flooding.
YOUR NEXT DECISION
Turn the answer into your next step
- Ask the HOA for its master policy declarations page and certificate of insurance.
- Confirm whether the master policy is bare-walls, single-entity, or all-in.
- Buy an HO-6 policy sized to cover your interior, belongings, liability, loss of use, and any upgrades.
- Check whether you want extra loss-assessment coverage above the default amount.
- Buy separate flood insurance if your lender or building requires it, or if flood exposure is a concern.
The policy you need for the unit
For a condo, the right policy is HO-6 condo insurance, not a standard HO-3 homeowners policy. In Arizona, condo coverage typically protects the interior walls, fixtures, personal property, and liability inside your unit, while the HOA master policy covers the exterior and common areas.
- Arizona DIFI says HO-6 is the condo type and it is typically “walls-in.”
- Fannie Mae-backed guidance says the HOA must maintain a Residential Condominium Building Associated Policy or equivalent private flood insurance when flood coverage is involved.
- If you have upgrades, make sure your coverage reflects the cost to rebuild those improvements now.
What the HOA policy does and does not do
The HOA’s master policy is not a substitute for your own condo policy. It generally covers shared parts of the building, but your belongings, interior improvements, personal liability, and loss-of-use costs are usually your responsibility under an HO-6 policy.
- Common areas and shared structure are typically on the master policy.
- A master policy may still leave you exposed to loss assessments if a shared claim exceeds the policy limit or deductible.
- Ask for the HOA master policy details so you can see whether it is bare-walls, single-entity, or all-in coverage.
Flood and lender checks
Flood damage is not covered by standard homeowners insurance, so flood protection must be separate. If your condo is in a flood-relevant situation, the lender and servicer must verify the HOA carries the required flood policy, and your own lender may also require HO-6 proof before closing.
- Arizona DIFI says standard homeowners insurance does not cover flooding.
- Fannie Mae says the lender and servicer must verify HOA flood coverage when applicable.
- Most mortgage lenders require HO-6 coverage to close on a condo loan.
Sources
KEEP EXPLORING
More ASU resources when you need them
Ask a follow-up about ASU
Ask a question to get the answer first. CH2 opens a tool or broader page directly only when you ask to use or view it.