Condo Insurance vs. Homeowners Insurance: Which Do You Need?
Buying a place to call home is exciting—but it also comes with responsibilities, including protecting your investment with the right insurance policy. If you’re weighing condo insurance vs. homeowners insurance, you may be asking: Which one do I actually need? The answer depends on the type of property you own and how much of it you’re responsible for maintaining.
What Is Homeowners Insurance?
Homeowners insurance is designed for people who own a traditional house and the land it sits on. A typical policy includes:
• Dwelling Coverage – Protects the full structure of your home (roof, walls, foundation).
• Other Structures – Covers detached buildings such as garages, sheds, or fences.
• Personal Property – Pays to repair or replace personal belongings if they’re damaged or stolen.
• Loss of Use – Covers temporary living expenses if your home is uninhabitable after a covered event.
• Liability Protection – Provides financial protection if you’re held responsible for injuries or damage to others.
Since homeowners are solely responsible for their entire property, this coverage is more comprehensive.
What Is Condo Insurance?
Condo owners share responsibility with their condominium association, which carries a master policy for the building’s exterior and common areas. Your individual condo insurance policy (HO-6) picks up where the master policy leaves off. It typically includes:
• Interior Coverage – Protects the inside of your unit: walls, ceilings, floors, built-in fixtures.
• Personal Property – Covers your belongings inside the unit.
• Loss of Use – Helps pay for temporary housing if your unit is uninhabitable.
• Liability Protection – Covers injuries or damage you’re legally responsible for.
• Loss Assessment – Covers your share of a special assessment levied by the condo association after a major claim.
Because condo owners don’t need to insure the full structure, premiums are often lower than homeowners insurance.
Condo Insurance vs. Homeowners Insurance: Key Differences
1. Property Responsibility
• Homeowners insure the entire home and land.
• Condo owners insure only the inside of their unit; the association insures the rest.
2. Policy Structure
• Homeowners have one policy covering everything.
• Condo owners rely on both the condo association’s master policy and their own policy.
3. Cost
• Condo insurance is generally less expensive.
• Homeowners insurance costs more, reflecting the larger scope of coverage.
Which Do You Need?
The right policy depends on the property you own:
• If you own a standalone house: You’ll need a homeowners insurance policy.
• If you own a condominium: You’ll need condo insurance, and you should carefully review your condo association’s master policy to understand your responsibilities.
Working with a licensed agent can help you determine the exact coverage you need and avoid any gaps that could leave you unprotected.