HO-6 Insurance

Release Date: 
Feb 04, 2014


HO-6 Insurance
What Is It? And Why Do GHI Members Need It? 

A plastic wastebasket placed on a stovetop while cleaning. A burning candle placed on the top of a toilet tank. An unnoticed ember from a fireplace that smoldered below the floor. A bird's nest in a chimney cap soon after a cleaning. What is the common thread in these? They are all conditions existing in the homes of careful, responsible co-op members that resulted in a property loss incident. Regardless of how attentive people are, there will be that remote chance that a judgment error or oversight may occur.

In accordance with your Mutual Ownership Contract (MOC) [http://ghi.coop/sites/default/files/governing-documents/Sample_MOC_0.pdf], GHI is required to have property insurance that covers the common elements and all conveyed structure, walls, floors and ceilings, even if they are not a part of the common elements. If there is an incident that would normally be covered by insurance (i.e. a fire, windstorm, etc.) GHI’s master policy will cover the claim (subject to the co-op's deductible), but it would exclude coverage for personal property in the unit, upgrades to the unit, and things other than the common elements or walls, floors and ceiling. Liability associated with the unit is not covered by the master policy. Though some members might assume that the cooperative will cover these things even if the insurance company does not, this is not true. The cooperative is not a substitute for the insurance company. If a member doesn't have his or her own insurance policy, they will have to pay for these types of losses (personal property, upgrades, liability) out of their own pocket or prove that another member was negligent. In addition, if a member is found negligent in an insurance incident, the cooperative may seek payment of its deductible from that member [http://ghi.coop/content/insurance-coverage-policy-ghi-structures-responsibility-payment-deductible-0].

That's where an HO-6 policy [http://www.insure.com/home-insurance/condo.html] comes in. An HO-6 policy will provide the following benefits not provided by GHI's master policy:

  • contents insurance - personal belongings such as clothing, furniture, decorations, bedding & linen, electronics, jewelry, etc.
  • liability insurance - occurrences for which the member is liable, such as a dog biting a visitor or a picture falling & injuring a visitor
  • replacement of improvements - coverage for up-grades or improvements above builder-grade materials

GHI strongly recommends that each member have an HO-6 policy. Several insurance companies can write you one. Information on the broker GHI uses is available from the GHI office. By GHI rules, an HO-6 policy is required for anyone having a wood burning or gas-fired stove or fireplace [http://ghi.coop/content/xxi-fireplaces-and-wood-stoves], or a swimming pool or hot tub/spa [http://ghi.coop/content/xiii-swimming-pools-and-ornamental-ponds].

Please be a responsible co-op member and obtain an HO-6 policy if you don’t already have one.