Condo Insurance vs. Homeowners Insurance

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Condo insurance and homeowners insurance are two types of property insurance policies, but there are differences. When deciding which type of policy is right for you, it’s important to understand the differences between them.

This article will explain the key differences between homeowners insurance for condo owners and regular homeowners insurance so that you can make an informed decision about protecting your home and belongings.

In this article, we will examine similarities and differences between condo insurance and home insurance by exploring some of the primary coverages provided by Condo Insurance And Home Insurance.

What’s The Difference Between Condo Insurance And Homeowners Insurance?

Personal Property Coverage

Condo insurance is similar to homeowners insurance in that they both provide coverage for your personal belongings. Both condo insurance and home insurance can also provide replacement cost coverage for your personal property.

While most standard home insurance policies (HO3, HE7, HO5) set the personal belongings coverage as a percentage of the dwelling coverage (typically 50% – 70%), the condo owner must specify how much personal property coverage they want on the condo insurance policy.

Personal Liability Coverage

Condo and Homeowners Insurance both provide liability protection. Condo insurance policies can provide liability coverage for any injuries in your condo unit as well as in the communal areas (hallways, parking areas) within a condominium complex. Homeowners Insurance policies provide liability insurance as well, but typically do not extend to locations that are not owned by the named insured.

Dwelling Coverage

Dwelling Insurance is an important component of a home insurance policy that helps pay for repairs or replacement of a home or other attached structure if it is damaged in an insured event. Standard property insurance covers damage caused by accidents such as fire and snowfall.

The condo insurance covers a minimum amount of “dwelling” coverage, normally starting around $1,000. The condo unit owner should take special care in determining how much condo insurance coverage they need on their condo insurance policy. The unit owner is responsible for everything from the studs in. This includes sheetrock, fixtures (lighting and plumbing, flooring, electrical, etc.

Loss Assessment Coverage

What Is Loss Assessment Coverage?

Loss assessment coverage is a type of coverage that provides financial protection for a condo owner in the event there are damages to common areas shared by all unit owners in their condominium complex. This could include things such as elevator repairs, roof replacements, and even landscaping damage due to storm events or vandalism. Loss assessment coverage can help cover any portion of the costs associated with these types of repairs that are not already covered under the condo association’s master policy. It is important to note that the losses assessed will vary depending on each individual condo association’s policies and procedures.

What is HO-6 Insurance?

HO-6 Insurance is the name of the standard Homeowners Insurance Form that is designed for condominium insurance. While much lesser known, and used, than the HO-3 Homeowners Form…the HO-6 has seen an increase over recent years as demographics have shifted and a wave of young professionals have started moving back to cities from the suburbs.

Standard HO-6 Insurance Coverage & Components

Unit Owners Dwelling Coverage

$1,000 Base Coverage

Personal Property Coverage

Specified By Condo Unit Owner

Loss Of Use Coverage

40% Of Personal Property Coverage (varies across condo insurance companies)

Personal Liability Coverage

Specified By Condo Unit Owner, but typical liability coverages are

$300,000
$500,000
$1,000,000

Medical Payments

Specified By Condo Unit Owner, but typical liability coverages are:

$1,000
$2,000
$3,000
$4,000
$5,000

Condo Insurance – Common Endorsements

Loss Assessment Coverage
Unit Owners Coverage A Increased Amount
Water Back-Up or Sump Overflow
Ordinance Or Law Coverage
Personal Injury

CoverageHO-3HO-6Coverage A – DwellingReplacement Cost$1,000 Base CoverageCoverage B – Other Structure10% Of Coverage ANoneCoverage C – Personal Property50%-70% of Coverage ASpecified By InsuredCoverage D – Loss Of Use20% of Coverage A40% Of Coverage CCoverage E – Liability$300,000 to $1,000,000$300,000 to $1,000,000Coverage F – Medical Payments$1,000 to $5,000$1,000 to $5,000HO-3 vs HO-6 Standard Coverage Comparison

What Is HO-3 Insurance?

HO-3 Insurance is the name of the standard Homeowners Insurance Form that is designed for stand-alone single-family homes.

The HO-3 Home Insurance Policy is the most standard and widely used form of home insurance coverage. It provides protection for a wide variety of perils, including damage to your home due to fire, wind, hail, lightning, and theft; as well as personal liability insurance if someone is injured on your property. The HO-3 policy also covers most types of water damage and losses due to vandalism.

Standard HO-3 Insurance Coverage & Components

Coverage A – Dwelling Coverage

Amount Of Coverage Determined By Replacement Cost Of Home

Coverage B – Other Structures

10% of Coverage A

Coverage C – Personal Property Coverage

50% – 70% of Coverage A

Coverage D – Loss Of Use Coverage

20% Of Coverage A

Coverage E – Personal Liability Coverage

Specified By Condo Unit Owner, but typical liability coverages are

$300,000
$500,000
$1,000,000

Coverage F – Medical Payments

Specified By Condo Unit Owner, but typical liability coverages are:

$1,000
$2,000
$3,000
$4,000
$5,000

Home Insurance – Common Endorsements

Water Back-Up or Sump Overflow
Ordinance Or Law Coverage
Personal Injury

Condo Insurance Quotes Vs HO-3 Quotes

Does Condo Insurance Cost Less Than Homeowners Insurance?

Condo Insurance is generally less expensive than homeowners insurance.

The reason for the discrepancy between a condo insurance quote and the homeowner’s quote is the fact that the condo insurance policy typically covers less.

The condo insurance is actually additional insurance to the condo association’s master policy. The Association’s Master Insurance Policy provides the main coverage for the structure (building). The policy for the condo association also provides liability coverage for the common areas of the complex (sidewalks, playgrounds, ponds, etc).

The Final Verdict – Condo Insurance Vs. Homeowners Insurance

At ALLCHOICE Insurance, our experienced and knowledgeable agents can answer all your questions about condo insurance. We understand that coverage needs for condominiums vary and we will work with you to provide the best policy for your lifestyle. Contact us today and let us help you find the perfect condo insurance policy to fit your specific needs!

With ALLCHOICE Insurance, you can rest assured that you are getting the best coverage for your condo at an affordable price. Let us help you protect your home and give yourself peace of mind. Call us today to get started!