The Difference Between Condo Insurance and Home Insurance

Condo living offers a unique blend of ownership and shared responsibility, and that means condo owners need insurance protection tailored to their specific situation. Like homeowners and renters, condo owners face risks such as fire, theft, and liability claims. However, because portions of the building are shared among residents and overseen by a condominium association, insurance works differently than it does for a standalone home. Understanding how condo coverage is structured can help you protect your investment and belongings properly.

Types of Insurance That Apply to Condos

Condominiums are typically covered by two distinct insurance policies: one purchased by the condo association and one purchased by the individual owner. Each policy covers different components of the property.

Condo Association (Master) Policy

The association carries a master policy that insures the building structure and shared spaces. This usually includes the roof, exterior walls, hallways, elevators, pools, and landscaped areas. Depending on the type of master policy, coverage may even extend inside the unit to basic fixtures, bare walls, or flooring.

Individual Condo Owner Policy (HO-6)

An HO-6 policy is designed to protect what the master policy does not. It covers your personal belongings, such as furniture, electronics, and clothing, as well as any improvements or features within your unit. HO-6 insurance also includes personal liability coverage if someone is injured inside your home. Most mortgage lenders and many condo associations require owners to maintain this coverage.

How Condo Insurance Differs From Homeowners Insurance

Homeowners insurance typically covers:

• The entire structure, including the roof, garage, fencing, sheds, and exterior features
• The interior of the home and built-in systems
• Personal belongings, whether inside or outside the home
• Liability protection for incidents occurring anywhere on your property
• Additional living expenses if a covered event forces you to temporarily move out

Condo insurance, by comparison, focuses on:

• The interior of the unit—walls, floors, ceilings, and built-in fixtures (depending on the master policy)
  
• Personal belongings within the unit
  
• Liability coverage for accidents inside the condo
  
• Your share of expenses if the master policy falls short in covering damage to common areas

The key distinction is that condo owners insure only the areas they individually own, whereas homeowners insure the entire property and structure.

How the Master Policy Impacts Your Condo Coverage Needs

The condo association’s master policy determines how much insurance an individual owner needs to carry. There are two common master policy types:

Bare Walls-In

This policy covers only the building’s structural framework and shared spaces, leaving owners responsible for everything inside their unit, including flooring, cabinetry, and interior fixtures.

All-In (or Walls-In)

This version provides broader coverage by extending to features inside the unit, such as built-ins and finishes. Owners would then only need coverage for personal belongings and liability.

Understanding which master policy your association carries is crucial. Without that knowledge, you could unintentionally purchase too much coverage or leave important exposures unprotected.

Our experienced agents can review your association’s policy and help you determine the exact HO-6 coverage you need at a competitive rate.