Condo vs. Home Insurance: What’s the Difference?

​Confused about the differences between condo insurance and homeowners insurance?
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Learn how these two policies differ, what each covers, and why it matters for property owners and buyers.

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When it comes to protecting where you live, understanding the difference between condo insurance and homeowners insurance can make a big impact on your peace of mind—and your wallet. Though both serve to protect your property, they differ in structure, coverage, and responsibility. Let’s break it down so you can be confident in your choice.

The Key Difference: Ownership Structure
At the heart of the difference between condo insurance (HO-6) and homeowners insurance (HO-3 or HO-5) is what exactly you’re insuring. Here's the core contrast:

• Homeowners Insurance (HO-3 or HO-5): Covers the entire property, including the home itself and the land it sits on.
• Condo Insurance (HO-6): Covers only the interior of the condo unit. The building structure and common areas are insured by the condominium association's master policy.

This means that with a condo, you’re typically responsible for your unit’s interior walls, flooring, ceilings, and personal property—but not the building’s exterior or shared spaces like hallways or roofs.


Coverage Comparison: Homeowners (HO-3) vs. Condo (HO-6) Policies
​A standard homeowners policy (HO-3) covers the full structure of the home, including the roof, walls, attached garage, and any detached structures like sheds or fences. In contrast, a condo policy (HO-6) typically covers only the interior of the unit—such as the walls, floors, ceilings, and fixtures—while the building’s exterior is usually covered by the condo association’s master policy. Both policy types include coverage for personal property, liability protection, and additional living expenses (also known as Loss of Use) if the home or unit becomes uninhabitable due to a covered loss. However, condo owners should carefully review the association’s master policy for any coverage gaps or overlaps, especially regarding shared spaces and exterior elements, to ensure their own policy fills in the right protection.

What to Know About Condo Association Master Policies
Every condo association carries a master insurance policy that usually covers the building's exterior, the roof, shared walls, amenities, and common areas. But these policies vary:

• Bare Walls-In: Covers only the structure and excludes internal fixtures like countertops and appliances.
• All-In (Single Entity): Covers structural elements within the unit, but not personal belongings.
• Modified All-In: May cover permanent fixtures and improvements but leaves out upgraded features.

Tip: Always request a copy of the condo association’s master policy and review it carefully. This helps determine how much additional interior dwelling coverage you need on your HO-6 policy.

Cost Differences
Condo insurance is generally less expensive than homeowners insurance because the coverage area is smaller. Since the condo association's policy takes care of the exterior and shared areas, you’re only insuring what’s inside your walls.

In contrast, homeowners are responsible for the full rebuild cost of the home, any detached structures, and the entire lot, which typically results in higher premiums.

Real-World Example
Let’s say there’s a kitchen fire:

• In a Home: Your homeowners insurance would pay for damage to the kitchen, cabinets, walls, and even the roof if needed—minus your deductible.
• In a Condo: Your condo insurance would cover damage inside your unit, such as smoke-damaged appliances and cabinets. The building’s exterior repair (if impacted) would be handled by the master policy.

What About Liability and Personal Belongings?
Both policies generally provide:

• Liability Protection: In case someone is injured on your property.
• Personal Property Coverage: Covers furniture, electronics, clothing, etc.
• Loss of Use (Additional Living Expenses): Helps pay for temporary housing if your home or unit becomes uninhabitable due to a covered loss.

You can also customize both types of policies with endorsements for valuable items (like jewelry or fine art), water backup coverage, and more.

Why This Matters in Texas, Missouri, and Kansas

• Texas: With frequent wind and hail storms, both homeowners and condo dwellers should understand wind/hail deductibles and how the master policy may or may not respond.
• Missouri & Kansas: Ice storms and tornadoes are common. In condos, roof damage caused by wind or tree limbs may fall under the master policy—but you need to know who pays the deductible.

Bottom Line
Understanding whether you need a condo insurance policy or a homeowners policy—and how much coverage you really need—comes down to how your property is owned, maintained, and insured at the building level.
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Whether you're buying a new home, downsizing to a condo, or reassessing your coverage, make sure your policy reflects your true needs.

Need Help Comparing Policies?
At Corin Insurance, we help clients across Texas, Kansas, and Missouri find the right coverage for their lifestyle. We’ll walk you through the ins and outs of your current policy and help you compare options from top carriers like Safeco, Travelers, Progressive, and more.

Disclaimer:Coverage varies by insurer and specific policy. This blog is intended for educational purposes and does not serve as legal or insurance advice. Always consult with a licensed insurance agent for personalized guidance.