H0-6 policies are synonymous with condo insurance. The main difference between a condo renter or owner's HO-6 policy and regular HO-3 homeowners insurance policies is that HO-6 policies only cover the interior structure of a unit, also known as being coverage from the "walls-in". Otherwise, HO-3 and HO-6 policies are quite similar in how they cover personal property, liability, and additional living expenses. An H0-6 policy is often referred to as a "named-peril" policy, meaning that every risk that will be covered is named explicitly within the policy contract. HOA insurance policies are also "named-perils" policies, containing a list of what will be covered. These typically include perils such as fire, theft, and vandalism, and other events that can damage or cause loss to common areas, the exterior structure, and the area surrounding the condo. If a hazard occurs that is not included on the “named-perils” list, you will be financially responsible for the covering the expense of repairs or replacements required due to damages. Keep in mind that damage from certain natural disasters, such as flooding and earthquakes, along with intentional damage and nuclear hazards, aren't included on most "named-peril" lists and may require the purchase of separate coverage. However, it is possible to turn your condo insurance into an "open peril" policy by adding a Unit Owners Special Coverage A endorsement. An "open peril" policy covers damages resulting from any causes that are excluded by a standard "named-peril" policy. Perils frequently named for exclusion from coverage include flooding, earthquakes, and sinkholes. Condo insurance policies typically provide coverage under the following categories: replacement cost, actual cash value, and extended replacement cost. Replacement cost coverage is based on the cost of repairing or replacing property at equal value. Actual cash value coverage reimburses the owner for the cost of the item minus depreciation. Extended replacement cost coverage goes beyond your policy's limit to rebuild or restore your condo.