Personal Insurance Requirements

• Minimum HO-6 dwelling limit recommended: $50,000

• HOA Master policy deductible: $50,000

• NOTE the HOA master policy does not have earthquake coverage - (Optional Ryder Available Through Golden Bear Insurance)

• NOTE the HOA master policy does not have flood coverage - (Optional Ryder Available Through Golden Bear Insurance)

Understanding Townhome Insurance Requirements in Utah – HOA vs. HO6 Policies

As part of our continued commitment to keeping you informed, we would like to provide a clear explanation of Utah’s

insurance requirements for townhomes, including what is covered by the HOA’s master insurance policy, what is

expected of individual homeowners through an HO6 policy, and why both are essential for complete protection.

Utah Law & HOA Insurance Requirements

Under Utah Code § 57-8a-403, townhome homeowner associations (HOAs) are required to maintain a master

insurance policy. This typically includes:

• Property coverage for common areas and the physical structure of units up to original builder-grade finishes

(often referred to as “walls-out” coverage).

• General liability coverage for incidents occurring in shared areas.

Each HOA’s governing documents may define exact responsibilities diƯerently, but, the master policy does not

cover damage to the interior of your unit, your personal belongings, or any improvements you’ve made.

What an HO6 Policy Covers (Individual Homeowner’s Policy)

An HO6 policy, also called a unit owner’s policy, is a personal insurance policy that homeowners are responsible

for carrying. It typically provides:

• Interior coverage for items not covered by the master policy such as flooring, cabinets, appliances, and

upgrades.

• Personal property coverage for your belongings.

• Loss of use coverage for temporary living expenses if your home becomes uninhabitable.

• Personal liability in case someone is injured in your home.

• Loss assessment coverage, which can help pay your share of any insurance-related special assessments.

HO6 Policy Limit: Meeting the HOA Deductible

Utah law also requires each homeowner’s HO6 policy to carry coverage equal to or greater than the HOA’s master

policy deductible.

For example, if the HOA policy has a deductible of $50,000, your HO6 policy should have at least $50,000 in dwelling

(building property) coverage. This ensures that if a claim originates from within your unit (like a kitchen fire or

plumbing leak), and the HOA’s master policy is triggered, your personal insurance can cover the deductible amount

that would otherwise be your financial responsibility.

We recommend verifying this amount with both your insurance agent and the HOA, as deductible levels can change.

Why Both Policies Are Needed

Both the HOA’s master policy and your HO6 policy work together to provide full coverage. The master policy protects

the shared structure and community property, while your HO6 policy protects what’s yours—from the walls in.

Without proper coverage, you could be personally responsible for repairs, replacements, or legal liability not covered

by the HOA.

What You Should Do Next

1. Review your HO6 policy to ensure it includes at least enough coverage to meet the HOA deductible and

adequately covers your personal property and interior features.

2. Provide a copy of your HO6 declaration page to the HOA or management company, if requested.

3. Consult your insurance agent to confirm your policy aligns with the HOA’s requirements and provides

suƯicient protection.

If you have any questions about the HOA’s master policy or your responsibilities as a homeowner, please contact

RISK MANAGERS, LLC at (801) 262-1220 or HOA@riskman1.com.

Thank you for your attention to this important matter and for being a valued member of our community.