What Is the Difference Between Condo and Home Insurance?

Condo and homeowners insurance serve different property types and can include varying terms and features. Knowing how each policy works can help you choose coverage that matches your needs. World of Insurance LLC can explains the key differences to help condo and single-family homeowners in Oregon make informed choices.

How Condo Insurance Works

Condo insurance, often called an HO-6 policy, is designed for unit owners who share common areas or buildings, but are responsible for insuring the inside of their own unit. It generally covers:

• The interior of your home (walls, floors, ceilings, fixtures)
• Personal property, such as furniture, electronics, and clothing
• Liability if you’re responsible for someone else’s injuries or damage to their property
• Additional living expenses if your unit becomes uninhabitable due to a covered incident

How Homeowners Insurance Differs

Traditional homeowners insurance, such as an HO-3 policy, is intended for those who own the entire structure and the land it sits on. It typically provides:

• Coverage for the dwelling, including the exterior and attached structures (such as garages)
• Liability coverage for injuries or property damage to others
• Coverage for additional structures on the property, such as sheds or fences
• Living expenses coverage if the home is temporarily unlivable due to a covered event
• Coverage for personal belongings

Key Differences to Consider

Here are some main contrasts between condo and homeowners insurance to keep in mind:

• Property coverage: Homeowners insurance may cover the whole building and land, while condo insurance can focus on the inside of the unit.
• Association policies: Condo owners may need to coordinate their coverage with the condo association’s master policy, which can already insure certain parts of the property.
• Cost factors: Because condo insurance can cover less of the structure, it may cost less than homeowners insurance, but coverage needs may still vary based on the association’s policy.

Get Covered Today

Contact World of Insurance LLC to discuss your options with our team.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.