Condo insurance vs. homeowners insurance

Condo insurance and homeowners insurance are similar in that they both provide coverage for the inside of the home, personal property, and liability. The difference is how the insurance handles the structure and exterior of the home.

Condo insurance (HO6)

When you buy a condo, you are (usually) only responsible for covering your interior unit, also known as ‘walls-in coverage’. The building, the common areas, the roof, etc. are all jointly owned with other condo owners in your building, which would (usually) be covered by your homeowners association (HOA) insurance.

Homeowners insurance (HO3)

When you buy a home, you need coverage for the entire dwelling, not just the interior. You are responsible for rebuilding costs of the entire home, as well as other structures such as fences, sheds, and carports. The coverage is typically going to be higher on a homeowners insurance policy.

What's typically covered?

For both condos (HO6) and homes (HO3):

• Interior walls

• Flooring (carpets, hardwood, etc.)

• Countertops

• Cabinets

• Plumbing

• Personal property

• Liability

Home insurance (HO3) also includes coverage for:

• Roof

• Foundation

• Exterior walls

• Fixtures

• Property

• Other structures

Condo owners (HO6) may also want to add coverage for:

• Loss assessment - if you live in an HOA, you may want to add this coverage on to help protect against having to pay out of pocket for damages in common areas. If the HOA surpasses the limits of its master policy in the event of a claim, each unit owner may be required to contribute funds to make up the difference. If you have loss assessment on your policy, this would pay out under this coverage.

These coverages may vary depending on your policy.