Regular Homeowner's policy (HO3) allowed for Condo instead of HO6???

[JayN]

I live in a large Condo (it is a townhouse but is still a condo). I'm
shopping around for insurance, since my existing insurance company
raised the rates by 12%.

One agent, who works directly for one of the insurance companies, is
telling me that he checked with his manager, and they can write me a
regular Homeowner's policy HO3 which will turn out to be less
expensive than if I were covered on an HO6 (condo policy). He claims
this is allowed.

The reason they are talking about an HO3 is because my existing policy
has almost 150K insured for the "Building Property" on the inside of
my unit. My unit is 3000 square feet if you include the finished
basement, which is why the amount is high. They consider that amount
of space to be unusual for a condo, and I may be currently
overinsured, but he says that it would be cheaper to just simply get a
regular HO3, and he says this is allowed. The quote I am being giving
is a couple hundred less than what I am currently paying for an HO6,
and I made it clear as to what my coverages are.

Just want to confirm that this is really allowed?

Thanks,

J.

[m***@gmail.com]

I live in a large Condo (it is a townhouse but is still a condo).  I'm
shopping around for insurance, since my existing insurance company
raised the rates by 12%.
One agent, who works directly for one of the insurance companies, is
telling me that he checked with his manager, and they can write me a
regular Homeowner's policy HO3 which will turn out to be less
expensive than if I were covered on an HO6 (condo policy).  He claims
this is allowed.
The reason they are talking about an HO3 is because my existing policy
has almost 150K insured for the "Building Property" on the inside of
my unit.   My unit is 3000 square feet if you include the finished
basement, which is why the amount is high.  They consider that amount
of space to be unusual for a condo, and I may be currently
overinsured, but he says that it would be cheaper to just simply get a
regular HO3, and he says this is allowed.  The quote I am being giving
is a couple hundred less than what I am currently paying for an HO6,
and I made it clear as to what my coverages are.
Just want to confirm that this is really allowed?
Thanks,
J.

J. So Happens that I had the same question for I have a person who
owns a condo but has a homeowners policy. Having the homeowner’s HO3
policy is better and that is fine. With associations you really trust
them to make sure they have enough and adequate coverage for the
building and that the deductible is not going to be so high that they
end up assessing the unit owners. An HO6 condo policy is not meant to
cover the association’s deductibles. If you have an HO3 and try to
get an HO6 let’s say on a single dwelling home then there you would
really run into problems for the chances of having enough coverage is
slim. Ho6 are meant to cover from the walls in, not from the walls
out and in.

Hope this helps
P & C Insurance agent over 20 years.
Milo