HO-6 vs. HO-3: What Your Townhome Actually Needs
Here's a plot twist that catches a lot of townhome buyers off guard: "townhome" is a shape, not an ownership type.
Two homes can look identical from the street. One owner needs an HO-3. The other needs an HO-6. Guess wrong and you either pay for coverage you'll never use, or you're missing the coverage you actually need.
Let's sort it out in about four minutes.
The 10-Second Gut Check
Ask yourself one question: do you own the dirt and the roof, or just the air inside?
You own the land, the roof, the siding, the whole structure - that's fee-simple ownership, and you need an HO-3, even if you share a wall with your neighbor.
You own everything from the paint inward, and the association owns the building - that's a condominium regime (yes, a townhome can legally be a condo), and you need an HO-6.
The answer lives in your closing documents, not in the architecture. Look for the word "condominium" in your Declaration. If it's there, you're an HO-6.
HO-3 vs. HO-6 in Plain English
What an HO-3 does
Insures the entire structure - roof, siding, foundation, everything
Covers other structures like a fence or a shed
Covers your belongings, your liability, and somewhere to stay after a claim
Costs more, because you're insuring a whole building
Loss assessment coverage is rarely a factor
What an HO-6 does
Insures the interior - your walls, cabinets, flooring, fixtures, and upgrades
Leaves the roof, siding, and common areas to the association's master policy
Covers your belongings, your liability, and somewhere to stay after a claim
Costs less, but "cheap by default" is where people get burned
Loss assessment coverage is critical - more on that below
The sneaky part of an HO-6 is Coverage A, the dwelling limit. Some carriers default it to a token amount like $5,000. If you've put in quartz counters, LVP floors, a tiled shower, and custom cabinets, a kitchen fire could leave you tens of thousands of dollars short. That number should be calculated, not accepted.
How to Actually Get Your HOA's Master Policy
You are entitled to see it. Most owners simply never ask. Here's the short path:
Email the property manager, not the board president. Managers handle certificates daily. Ask for "the current master policy declarations page and the evidence of property insurance."
Check the HOA portal. Many management companies post the certificate, the budget, and the governing documents under a Documents tab.
Dig out your closing package. Georgia resale packages often already include the declarations and the insurance certificate.
Read the Insurance article of the Declaration. This is what actually controls who insures what - the certificate only summarizes it.
Ask for the last two years of meeting minutes and the current budget. Special assessments and reserve shortfalls show up here first.
Then send all of it to us. Reading these is honestly our favorite kind of homework.
The Three Words That Decide Everything: Bare Walls In
Master policies come in flavors, and the flavor determines how much coverage you personally need to buy:
Bare walls-in: the association covers the structure and common areas only. Drywall inward is all you. You need the most coverage.
Single entity, or walls-in: covers the unit as originally built, but not your upgrades. You insure the difference between builder-grade and what you installed.
All-in, or all-inclusive: covers fixtures, improvements, and betterments. You need the least, but still not zero.
Nobody volunteers this information. You have to read for it.
What to Watch Out For
Loss assessment coverage
This is the big one. When a covered loss hits the common property and the association's insurance doesn't cover all of it, the HOA can assess every unit owner for a share. Loss assessment coverage on your HO-6 pays your portion. Many policies include a small default limit - sometimes $1,000 - which disappears fast. Increasing it is usually one of the cheapest endorsements on the whole policy.
The master policy deductible
Association deductibles of $10,000, $25,000, or higher are common. In Georgia, the wind and hail deductible on a master policy is often a percentage of the building value rather than a flat dollar amount, which makes it much larger than owners expect. That gap can be assessed to unit owners too. Some carriers cover master-deductible assessments and some specifically exclude them, so confirm it in writing.
Assessments already in motion
If the association is already planning a roof project or has announced a special assessment, ask about the timing. Coverage bought after an assessment is announced generally will not respond to it.
Water backup
Shared plumbing stacks and neighbors above or beside you make this endorsement far more valuable in attached housing than in a standalone house. It is usually a small add.
Ordinance or law
Older buildings rebuilt to current code cost more to repair than they did to build. This endorsement covers that difference, and it matters on both HO-3 and HO-6 policies.
Quick Questions We Get a Lot
Can I own a townhome and still need an HO-3?
Yes, and it's common across Douglas and Paulding counties. If you own the lot and the structure, HO-3 is the right form even with shared walls.
Does the master policy cover my belongings?
No. Master policies never cover personal property, and they do not cover your personal liability either.
How much loss assessment coverage should I carry?
It depends on the master deductible, the size of the association, and the condition of the common property. Once we see the declarations page, that number gets much easier to pin down.
What if my lender says my coverage is wrong?
Usually that means the policy form doesn't match the ownership structure. It's a fixable problem, and typically a fast one.
Let's Read Your Docs Together
Hometown Insurance Group Jimenez Agency works with townhome and condo owners across Douglas, Carroll, and Paulding counties. We'll go through your HOA documents line by line so your coverage matches the ownership, not the architecture. We represent more than a dozen carriers, and we're glad to help in English or Spanish.
Call or text us at 678-525-7607, or stop by the office at 8322 Office Park Drive, Suite B, Douglasville, GA 30134.
This article is general information, not a policy or a contract. Coverage terms, limits, and endorsement availability vary by carrier and by policy. Always refer to your own policy documents and your association's governing documents for what applies to you.
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