HO-6 vs HO-3 Insurance: Complete Comparison Guide for San Diego 2025

Quick Answer – Do You Need HO-6 or HO-3? (Decision Framework)

HO-6 insurance is required for condominiums, townhomes, and co-ops where you own the interior unit but share common areas, while HO-3 insurance covers detached single-family homes where you own both the structure and land, with HO-6 policies in San Diego averaging $688 annually compared to $1,200-1,800 for HO-3 coverage. The determining factor isn’t preference or cost—it’s your property type and what your HOA master policy covers, making this choice a legal and structural necessity rather than a financial decision.

Here’s the thing that nobody tells you when you’re sitting in that closing room, papers spread everywhere, feeling like you need a PhD in insurance terminology just to buy a place to live. I remember staring at my agent three years ago when I bought my Little Italy condo, completely confused about why she kept insisting I needed “HO-6” instead of regular homeowner’s insurance.

“But I’m buying a home,” I said. “Why can’t I get homeowner’s insurance?”

She laughed—not in a mean way, but like I’d just asked why fish don’t ride bicycles. That’s when I learned the most important lesson about condo insurance: it’s not about what you want, it’s about what you actually own.

Quick Decision Tree:

• Own a detached house? → HO-3
• Own a condo, townhome, or co-op unit? → HO-6
• Unsure what you own? → Check your deed and HOA documents

The Real Difference Between HO-6 and HO-3 Insurance

The fundamental difference boils down to this: HO-3 assumes you own everything from the foundation to the roof, while HO-6 assumes you own everything from the drywall inward.

Think of it like apartment living versus house living, but with a twist. When you buy a house, you’re responsible for the roof, the foundation, the exterior walls, the plumbing, the electrical—everything. When you buy a condo, you’re buying the interior space and a share of the common areas.

I didn’t truly understand this until my upstairs neighbor’s water heater exploded last year. Water came pouring through my ceiling, ruining my hardwood floors and soaking my furniture. Here’s what blew my mind: my HO-6 policy covered my damaged floors and belongings, but the building’s master policy covered fixing the actual ceiling structure and the neighbor’s water heater replacement.

HO-3 Coverage (Houses):

• The entire structure (roof to foundation)
• Personal belongings inside
• Detached structures (garages, sheds)
• Liability for your property
• Additional living expenses if displaced

HO-6 Coverage (Condos):

• Interior fixtures and improvements
• Personal belongings
• Interior walls and flooring
• Liability within your unit
• Loss assessment coverage (this one’s huge)

The loss assessment piece is something house owners never think about because they don’t need to. But condo owners? We share financial responsibility for major building repairs through special assessments.

San Diego Condo Insurance Costs – HO-6 vs HO-3 Reality

Let me hit you with some numbers that might surprise you. Calculate your exact HO-6 premium here, but here’s what you’re looking at in San Diego:

Average Annual Premiums:

• HO-6 (Condo): $688 per year
• HO-3 (House): $1,200-$1,800 per year

Yeah, you read that right. HO-6 is typically 60-70% cheaper than HO-3. But here’s the kicker—that’s not because HO-6 is “insurance lite.” It’s because you’re insuring less stuff.

When I moved from my rental house in Clairemont to my downtown condo, I expected my insurance to stay about the same. Wrong! My premium dropped from $1,400 to $720 annually. I was thrilled until my agent explained what I was actually covered for.

“You know that beautiful kitchen renovation the previous owner did?” she asked.

“Yeah, that’s why I bought the place.”

“If there’s a fire and it gets damaged, you’re covered. If the building burns down completely? The HOA master policy rebuilds the basic structure, but your fancy countertops and custom cabinets? That’s on you.”

Light bulb moment.

What Drives San Diego Pricing:

• Location factors: Coastal condos run about $660-750 annually
• Building age: Newer buildings often get 10-15% discounts
• High-rise considerations: Downtown towers can add $100-200 annually
• Earthquake add-on: Typically adds $150-300 for condos

Use our cost calculator to see exactly what you’d pay based on your specific building and coverage choices.

Downtown San Diego High-Rise Condos – Special Requirements

Living in one of those gorgeous high-rise towers downtown comes with some unique insurance considerations that nobody talks about until you’re already living there.

My friend Sarah bought on the 32nd floor of a Gaslamp high-rise and learned about “loss assessment” coverage the hard way. The building needed a new elevator system—$2.3 million project. Each unit owner’s assessment? $8,400.

“I thought my HOA fees covered building maintenance,” she told me over coffee, still in shock.

“They cover regular maintenance,” I explained. “Major capital improvements and emergency repairs? That’s on us.”

High-Rise Specific Considerations:

• Higher liability limits: More people, more potential liability
• Loss assessment coverage: Essential for major building repairs
• Water damage complications: When problems happen 30 floors up, they affect many units
• Evacuation coverage: If the building becomes uninhabitable
• Higher personal property limits: Expensive units often contain expensive stuff

Most downtown high-rise master policies have deductibles of $50,000 or more. If there’s a major claim that affects multiple units, each owner might be responsible for a portion of that deductible.

Another thing I learned: some high-rise buildings require minimum coverage amounts. Sarah’s building mandates at least $500,000 in liability coverage and $10,000 in loss assessment coverage.

Coastal Condos in San Diego – Unique Coverage Considerations

Coastal living in San Diego is amazing until you start thinking about insurance. The salt air, wind exposure, and potential flood issues create some unique coverage needs.

I have a client (I help people with insurance decisions now) who owns a ground-floor unit in Mission Beach. Beautiful place, steps from the ocean. But that proximity comes with risks that inland condos don’t face.

Coastal Condo Challenges:

• Salt air damage: Accelerates wear on fixtures and finishes
• Wind exposure: Higher potential for damage from coastal storms
• Flood considerations: Ground floor units may need separate flood insurance
• Higher replacement costs: Coastal materials and labor cost more
• Vacation rental liability: If you rent out your unit short-term

The flood insurance piece is tricky. Most people assume their condo insurance covers flood damage. Nope. If you’re in a flood zone—and many coastal San Diego condos are—you need separate National Flood Insurance Program coverage.

My Mission Beach client learned this when researching her purchase. The building’s ground floor had flooded during heavy rains two years prior. Regular HO-6 policies covered water damage from internal sources (burst pipes, appliance leaks) but not flood water coming from outside.

Coastal Premium Adjustments:

• Wind/hail exposure: Can add 10-20% to base premium
• Flood insurance: $400-800 annually depending on zone
• Higher replacement costs: Coastal labor and materials premium

What Your Mortgage Lender Actually Requires (and Why)

Here’s where things get interesting. Lenders have specific requirements, but they’re often different from what insurance agents try to sell you.

When I was getting my mortgage, my loan officer said I needed “dwelling coverage equal to the replacement cost of the home.” That sent me into a panic because I thought I needed to insure the entire building.

Wrong again.

What Lenders Actually Require:

• Coverage A (Personal Property): Usually minimum $20,000-40,000
• Liability Coverage: Typically $300,000 minimum
• Loss Assessment: Often required, usually $1,000-5,000 minimum
• Additional Living Expenses: Usually 20% of personal property coverage

What they don’t require: coverage for the building structure (that’s the HOA’s job), massive liability limits (unless you request them), or every possible add-on coverage.

The confusion comes from loan documents that reference “dwelling coverage” for both house and condo loans. For houses, dwelling coverage means the structure. For condos, it means your unit improvements and personal property.

I spent hours on the phone with my lender clarifying this because my insurance quote seemed “too low” compared to what I’d paid for house insurance. The loan processor didn’t understand HO-6 policies and kept asking why my “dwelling coverage” was only $75,000 instead of the $600,000 purchase price.

Check our calculator to see minimum coverage amounts that meet most lender requirements.

Understanding Your HOA Master Policy Impact

This is where most condo owners get completely lost, and honestly, I don’t blame them. Master policies are complex documents written in insurance-speak that most people never read.

But you absolutely should read yours. Or at least understand it.

I learned this lesson when helping my neighbor file a claim after a kitchen fire. We assumed her HO-6 policy would cover everything inside her unit. Partially correct. The master policy covered the basic cabinet boxes, but her upgraded hardware, countertops, and appliances were her responsibility.

Types of Master Policy Coverage:

“Walls-In” (All-In):

• HOA covers: Everything from drywall inward
• You cover: Personal belongings and improvements beyond standard

“Walls-Out” (Bare Walls):

• HOA covers: Only the building shell and common areas
• You cover: Everything inside, including basic fixtures

“Single Entity” (Middle Ground):

• HOA covers: Building plus original fixtures/finishes
• You cover: Upgrades, improvements, and personal property

Most San Diego condos use “walls-in” coverage, but you can’t assume. My downtown building uses “single entity,” which meant I needed higher HO-6 coverage than someone in a “walls-in” building.

How to Find Out:

• Request master policy documents from HOA
• Ask specifically about coverage boundaries
• Understand deductible responsibilities
• Know what qualifies as “standard” vs “upgrade”

The deductible piece is crucial. If the master policy has a $25,000 deductible and there’s a building-wide claim, unit owners typically split that cost proportionally.

Earthquake and Wildfire Coverage – Policy Differences

California’s natural disaster risks affect both HO-3 and HO-6 policies, but in different ways.

I remember the Saddleridge Fire a few years back. Didn’t affect San Diego directly, but it got me thinking about wildfire coverage. My parents live in a Scripps Ranch house and have different wildfire concerns than I do in my downtown condo.

Earthquake Coverage:

• Not included in standard HO-3 or HO-6 policies
• Separate earthquake policy required through CEA or private insurers
• Condo earthquake coverage: Usually $200-400 annually
• House earthquake coverage: $400-800+ annually

For condos, earthquake insurance covers your unit’s contents and improvements. The building structure is covered by the HOA’s earthquake policy (if they have one—many don’t).

Wildfire Coverage:

• Included in both HO-3 and HO-6 for direct fire damage
• Different risk levels based on location
• FAIR Plan may be required for high-risk areas

My parents in Scripps Ranch pay significantly more for homeowner’s insurance due to wildfire risk. Their home is in a “very high fire severity zone.” My downtown condo? Low fire risk zone.

But here’s something interesting: even though my fire risk is lower, if there were a wildfire that affected downtown (unlikely but possible), the impact on my condo would be different from a house. Building-wide fire damage would trigger the master policy first, then individual unit policies.

Calculate your earthquake coverage costs to see how natural disaster add-ons affect your premium.

When to Switch from HO-3 to HO-6 (or Vice Versa)

This isn’t usually a choice—it’s dictated by your property type. But there are some gray area situations worth discussing.

Automatic Switches:

• Moving from house to condo: Must switch to HO-6
• Moving from condo to house: Must switch to HO-3
• Townhome purchases: May require either, depending on ownership structure

The townhome situation is tricky. I helped a friend buy a townhome in Carmel Valley, and we had to dig deep into the HOA documents to figure out which policy type he needed. The determining factors:

• Do you own the land under your unit? (Suggests HO-3)
• Is there an HOA master policy covering structures? (Suggests HO-6)
• Are you responsible for exterior maintenance? (Suggests HO-3)

His townhome had an HOA but owners were responsible for their own roofs, exterior walls, and landscaping. That made it more like a house than a condo for insurance purposes. HO-3 it was.

Red Flag Situations:

• Insurance agent suggests switching policy types without property change: Get a second opinion
• Lender requires different coverage than your agent recommends: Clarify with both parties
• You’re paying house insurance prices for condo coverage: Something’s wrong

I once met someone paying $1,600 annually for HO-6 coverage on a basic 2-bedroom condo. Turns out their agent had sold them inappropriate coverage levels. We got them down to $750 with proper coverage.

Real San Diego Examples – Condo vs House Insurance Stories

Let me share some real situations that illustrate these differences in action.

Case 1: The Hillcrest Townhome Confusion
My neighbor Mike bought a 3-story townhome in Hillcrest. The real estate agent called it a “condo,” the HOA called it a “townhome,” and the insurance agent wasn’t sure what to call it.

After reviewing the CC&Rs, we discovered:

• Mike owns his unit’s interior, exterior walls, and roof
• HOA maintains common walkways and landscaping only
• No master insurance policy covering individual units

Result: HO-3 coverage required, not HO-6. The terminology was confusing, but the ownership structure told the story.

Case 2: The Downtown High-Rise Assessment
Sarah’s elevator assessment story has a happy ending. Because she had adequate loss assessment coverage ($15,000), her out-of-pocket cost was zero when the building levied an $8,400 special assessment for elevator replacement.

Her neighbor across the hall had minimal coverage ($1,000) and paid $7,400 out of pocket for the same assessment.

Case 3: The Mission Beach Flood
Remember my Mission Beach client? During heavy El Niño rains, water came up through the building’s underground garage and flooded the ground-floor units.

Her HO-6 policy didn’t cover the flood damage to her unit ($30,000 in hardwood floors and kitchen cabinets), but her separate flood insurance policy did. The unit owner next door had no flood insurance and paid everything out of pocket.

Case 4: The Policy Mix-Up
This one’s my favorite because it shows how confusing this stuff can be. A friend inherited her grandmother’s condo in Mission Hills. The property had been covered by an HO-3 policy for years because grandma had bought it when it was a house, before the conversion to condos.

The insurance company had never updated the policy type, so she was paying $1,400 annually for HO-3 coverage on a condo. We switched to HO-6 and saved her $600 per year while actually improving her coverage for condo-specific risks.

Use our detailed calculator to avoid these common mistakes and get appropriate coverage for your specific San Diego property.

The bottom line? Your property type dictates your insurance type, not your preferences or budget. Understanding the difference between HO-6 and HO-3 isn’t just academic—it’s about getting the right protection for your specific ownership situation.

Whether you’re buying your first condo downtown or switching from a house to condo living, calculate your accurate HO-6 costs here and make sure you’re protected for what you actually own, not what you think you own.