What are the differences between condo insurance vs homeowners insurance? Whether you own a condo or home, you will require insurance for it. Although there are similarities between condo insurance and home insurance, there are also some key differences as well.
And knowing these differences could help you get the right protection you need. Here is everything you need to know about the differences between homeowners insurance and condo insurance.
Differences between Condo Insurance vs Homeowners Insurance
The main difference between Homeowners insurance (HO-3) and Condo insurance (HO-6) is how much property that you are responsible for covering. When you own a house, you own the whole property. This means you are responsible for the home’s structure, the land, and everything that is inside the home. In other words, you are responsible for any injuries or property damage that occurs on the premises.
But when you own a condo, you only own what is inside the apartment. This means you are responsible for your unit and your belongings inside of it. Just so you know, the main differences between a typical homeowner’s insurance policy and condo insurance coverage are based on three areas – personal property coverage, liability coverage, and personal property coverage.
| Condo insurance | Homeowners Insurance | |
| How dwelling coverage is different | Responsible for condo unit interior | Responsible for the entire home structure |
| How loss of use is different | Coverage is 50 percent of Coverage C (Personal property limit). | The coverage limit is 30 percent of coverage A limit (dwelling coverage) |
| How other structure coverage is different | Not included in the condo insurance | Responsible for other additional structures on the property |
| How personal property coverage is different | Responsible for insuring personal belongings outside and inside of your condo unit | Responsible for insuring the personal belongings outside and inside of the entire home |
| What policyholders are covered against | Sixteen named perils for both personal property and interior | Open perils for home structure and 16 named perils for your personal property |
| Average cost | $506 in a year | $1,899 in a year |
Homeowners and Condo Insurance Coverage Differences Explained
Condo insurance and homeowners insurance are very similar – both help to protect your belongings and homes from burglary or damage. But just as I have mentioned above, the main difference is the coverage you need.
Dwelling coverage
This coverage covers the structure of your condo unit or house. The coverage limit should base on your property replacement cost. A property’s number of rooms, square footage, interior fixtures and more contributes to the replacement cost. When your own a co-op or condo, the dwelling coverage limit in your co-op or personal condo insurance policy should be centered on what your association master policy does cover or already does.
To give you a better knowledge of the amount of dwelling coverage you need, you will need to find out if your association’s commercial policy provides structural coverage for the interior units. Just so you know, there are three main master policies, Single entity, bare walls, and in-all coverage.
Personal property coverage
Both condo insurance and homeowners insurance protect your personal belongings or property from covered damages and theft. Regardless of how wide your association policy may be, it will never cover the belongings inside your unit.
Liability coverage
Liability coverage helps to protect you from financial loss if you are sued for property damage or bodily injury. If you are a house owner, you are exposed to more risk since you will be responsible for all accidental injuries that happen on your property. However, when you are a condo owner, you are only responsible for the accidents that happen in your condo unit. If a visitor gets injured in the condo buildings pool area or weight room, the responsibility will fall on the condo association, not the individual unit
Loss assessment coverage
Loss assessment coverage is a policy add-on that helps to cover losses assigned to homeowners or condo association members after a loss or damage to the building’s common area. This coverage only applies when the cause of the damage is covered by your home or personal insurance policy. So, if you are issued a loss of assessment for damage to the building lobby, you won’t be covered for the loss portion.
Condo Insurance vs Homeowners Insurance Cost
Homeowners insurance is usually more expensive than that condo insurance. You don’t need much dwelling coverage for your condo. So, this cuts down the price of a policy. Nevertheless, the average cost of homeowners insurance is $1899 per year. While the condo insurance cost is usually around $506 per year on average.
In conclusion
When you are a condo owner, you are protected by two policies; your condo policy and your association’s commercial policy. Also known as the Master policy, the association insurance covers the building itself, personal property belonging to the association, common areas and claims the association is responsible for. it also sometimes extends to individual units’ interiors and covers floors, walls, ceilings, and fixtures within the units.
FAQs
Is Condo Insurance the same as Homeowners Insurance
Condo insurance does not cover the interior of a home, but everything outside of those walls is covered by the homeowner association’s master policy. Homeowners and condo owners have different insurance policies that look virtually identical.
Is Condo Insurance cheaper
Condor insurance is more affordable than homeowner insurance. According to reports, the average annual cost of home insurance is $1899 and condos cost $506.
What’s the difference between ho3 and HO6?
The difference between ho3 and HO6 is that HO-3 insurance cover standard homes while HO6 insurance cover condos. Another way to differentiate between the two is the portions of the property each policy covers.
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