Owning a condo feels different from owning a house, and it should. You’re buying into a community, not just four walls and a roof. Some areas are yours to maintain. Others belong to the association. That’s why the insurance coverage that protects a condo isn’t the same as what you’d need for a traditional single-family home.
If you’re in the process of buying a condo, or already live in one, it helps to know how condo insurance works, and how it compares to standard homeowners insurance.
Two Policies, One Property: How Condo Coverage Works
When it comes to condos, insurance isn’t just a personal decision. The building itself and all shared areas are usually insured by the condo association. This is done through a master policy. But that policy doesn’t protect your furniture, your electronics, or you personally if someone gets hurt inside your unit. That’s where your own policy comes in.
So, to break it down:
- The condo association carries insurance for the structure and shared spaces
- You, the condo owner, need a separate policy to protect your unit and belongings
These two policies work together. But they don’t overlap as much as people think.
What the Condo Association Covers
The master policy is paid for by the association, usually through your monthly dues. It’s built to cover:
- The building’s structure, like roofing, siding, and foundations
- Common areas, including lobbies, elevators, gyms, and walkways
- Sometimes, basic fixtures inside individual units, though this varies
In some cases, the association’s policy may include coverage for things like plumbing systems, walls, or even built-in cabinets. But in many cases, once you cross the front door of your unit, the rest is on you.
This is why it’s important to read the condo association’s bylaws. Some associations insure up to the drywall. Others stop at the studs. Either way, what’s inside your unit often needs its own coverage.
What Your Personal Condo Insurance Covers
The policy you buy for your own condo unit is sometimes called HO-6 insurance. It’s designed to protect the parts of your space the master policy doesn’t reach.
Your personal condo insurance typically covers:
- Interior finishes: flooring, walls, paint, lighting, appliances
- Personal property: clothes, electronics, furniture, decor
- Liability protection: if a guest is injured inside your unit
- Loss of use: if damage forces you to live elsewhere temporarily
- Loss assessment: your share of certain repairs or legal costs in common areas
This policy fills the gaps. If a kitchen fire damages your cabinets, or a pipe leak soaks your couch, your HO-6 coverage is what helps you repair or replace those items.
How It Differs From Homeowners Insurance
Homeowners insurance, also called HO-3, is written for people who own both the structure and the land beneath it. The policy is more expansive because it has to be. It includes the entire house, the yard, any outbuildings, and everything inside.
So, what’s different?
- Property Ownership:
Homeowners insurance covers the structure, roof, walls, exterior, plus garages, sheds, fences, and more. With condo insurance, you usually don’t need coverage for the exterior at all. - Liability Scope:
A homeowners policy may cover injuries anywhere on the property, including the driveway or backyard. A condo policy focuses on liability inside your unit. If someone slips on the stairs in the lobby, that’s the association’s responsibility. But if they fall in your kitchen, it’s on you. - Maintenance Responsibility:
If you own a house, whatever breaks on the property, it’s your job to handle it. Condo owners are responsible only for repairs inside their unit, unless the association states otherwise. - Loss Assessment:
This is unique to condos. If the building’s insurance isn’t enough to cover a big repair, the cost gets shared among all unit owners. Loss assessment coverage on your policy can help with your portion of the bill.
Why the Difference Matters
Not understanding the boundary between the master policy and your own coverage can leave you underinsured. Imagine a burst pipe floods your bedroom and damages the flooring. If their coverage ends at the drywall, the rest is up to you.
Or worse, a visitor trips on your living room rug, breaks a wrist, and sues. Without personal liability coverage, you’re personally responsible for medical and legal costs.
That’s why mortgage lenders usually require you to carry condo insurance. It protects their investment, and yours.
What to Ask Before You Buy a Policy
If you’re buying a condo or reviewing your current coverage, get a copy of your association’s insurance declarations. From there, ask your agent:
- What exactly does the master policy cover?
- Do I need coverage for floors, fixtures, and built-in appliances?
- Does my policy include loss assessment protection?
- How much personal liability coverage should I carry?
- Is loss-of-use included if my condo becomes temporarily unlivable?
These questions help avoid surprises later.
Why Home Insurance Doesn’t Work for Condos
You might be tempted to ask for a standard homeowners policy to save time or assume more coverage is better. But you’ll end up paying for protection you don’t need, and missing the coverage that actually matters in a condo setup.
Homeowners insurance protects from the outside in. Condo insurance starts at your door and works inward. That’s the shift in mindset.
Still Not Sure What Fits? You’re Not Alone
This is where most new condo owners get stuck. They understand that insurance is required but aren’t sure how much or what kind. Some think the association covers everything. Others buy too much and pay more than they need to.
That’s why it helps to work with someone who understands both sides, the association’s responsibilities and yours. If you’re reviewing your policy or buying a unit for the first time, take a few minutes to see how condo insurance differs from home insurance, and what the right coverage can save you down the line.