Before we get into the in-depth comparison, here’s a table for a closer look. Just remember,
not all condo insurance policies are the same as they differ from insurer to insurer. Read
the policy carefully and evaluate your needs realistically to make sure you’re getting the
coverage you need.
Type of Coverage
Coverage A : Dwelling
Coverage B : Other Structures
10% of Coverage A
Part of Coverage A
Coverage C : Personal Property
50% of Coverage A
Coverage D : Loss of Use
20% of Coverage A
40% of Coverage C
Coverage E : Personal Liability
Coverage F : Medical Payments
The biggest difference between these two policies is they serve different purposes. The
needs of a homeowner are not completely the same as the needs of a condominium owner, which
is why they require different policies. Condos require less maintenance and there’s less to
insure as compared to houses.
With a condominium insurance policy (HO-6), you are covering only what you own, which is the
unit and your personal property, not to mention you’re covering yourself. The condo
association will take care of everything else because they own the building, the structure,
the common areas, and the exterior.
With a homeowners insurance policy (HO-3), you’re covering the entire home, the other
structures on the premises, personal property, and yourself, so there’s a lot more to it
because you own everything. Both policies provide peace of mind and they help protect your
investment, it’s just that the properties are different and that means your needs are
The HO3 policy covers a lot more than the HO6 policy because there’s a lot more to cover.
For example, the fence around a home would be covered by an HO3 policy. If it gets ruined
during a storm, the insurance will cover it. However, if you live in a condo and the fence
around it gets damaged, that’s on the condominium association, and their insurer should
cover it, not yours.
This is why condo owners need to read the master policy of the HOA and understand exactly
what kind of coverage they have in place. This will not only let you know what the condo
association is responsible for, but it will also help you determine what kind of coverage
you need to make sure you’re safe. Having the right amount of dwelling coverage is a rule of
thumb for condo insurance and homeowners insurance, so that’s something you simply can’t
Whether you own a house or a condo, you need liability coverage. It’s true that if someone
gets injured in a common area of the condo, your association’s insurance company will look
into that claim. However, accidents can happen inside the unit as well and you would be
liable, so you need personal coverage. The same goes for homeowners; you can never predict
accidents, so you have to be prepared for anything.
You also should have an inventory of your personal property to understand the coverage
limits and make sure you’re getting the right amount of coverage. Both the HO3 and HO6
policies provide this type of coverage, you only have to make sure it’s appropriate for your