Condo Insurance vs Homeowners Insurance [Deciding Factors]

Condo Insurance vs Homeowners Insurance


Imagine you’ve just bought your dream home. Whether it’s a cozy condo with a view of the city or a house with a yard for weekend barbecues, protecting your investment is the next step. 

However, not all homeowners insurance is created equal. Condo insurance (an HO-6 policy) and standard home insurance (an HO-3 policy) are actually quite different. 

Let’s dive into what sets condo insurance vs homeowners insurance apart—and why the right coverage matters.

Key takeaways

  • Condo insurance covers the inside of your unit, while homeowners insurance covers your entire home and property.
  • The amount of condo insurance you need is often based on the type of master policy your condo association has, along with other factors.
  • Homeowners insurance usually costs more than condo insurance because it has broader coverage.
  • Knowing your property type and coverage needs can help you pick the right policy.

What is the difference between homeowners insurance and condo insurance?

There are eight types of homeowners insurance. Two of these types are standard homeowners insurance (an HO-3 policy) and condo insurance (an HO-6 policy). Both cover a lot of the same items, but the difference between HO-3 vs HO-6 insurance lies in the scope of coverage. 

Homeowners insurance protects the entire structure of your home, including the roof, walls, foundation, and external structures like sheds, along with your personal belongings and liability. It’s for standalone houses, where you, as the owner, are responsible for the entire property.

Condo insurance is for an individual unit. It typically covers personal property, liability, and potentially any upgrades you’ve made to your unit, like custom flooring or countertops. Shared spaces like hallways and pools are covered by your condo association’s master policy, which may also influence what you need in your individual coverage.

Here’s how to decide between condo insurance vs home insurance:

  • If you own a townhome or a unit inside a condominium or apartment building, you most likely need condo insurance. 
  • If you own a single-family home, you need homeowners insurance. 

Is condo insurance the same as homeowners insurance?

No, condo insurance and homeowners insurance are not the same. 

The main distinction lies in the property type: homeowners insurance is designed for those who own their home and the land on which it sits. It’s more comprehensive than condo insurance because it covers more items. 

Condo insurance is for units within a shared building. It covers the parts of your condo you specifically own, like the inside of your unit and your personal belongings. 

Both policies have insurance deductibles you’ll need to meet if you file a claim and offer protection from specific perils like windstorms, hail, fires, lightning, theft, and more.

Differences in coverage between condo insurance and homeowners insurance

The coverage differences between homeowners insurance for condos and homeowners insurance for single-family homes come down to what each policy protects:

  • Dwelling coverage: Homeowners insurance covers the entire structure of the home, including the roof, walls, and foundation. Condo insurance typically covers only the interior of your unit (often called "walls-in" or “bare walls” coverage).
  • Shared areas: Condo insurance relies on the condo association’s master policy to cover shared spaces like hallways, roofs, and pools. Homeowners insurance covers the full property, including outdoor structures like garages, sheds, and pools.
  • Personal belongings: Both policies cover your personal belongings, such as furniture, clothing, books, workout equipment, rugs, and electronics. For both, you may need separate scheduled property coverage for high-value items.
  • Liability coverage: Both provide liability protection, but condo insurance claims may be limited to accidents that happen inside your unit only rather than anywhere on your property. Limits usually range from $100,000 to $500,000 for both policy types. You can get umbrella insurance for higher limits.
  • Loss assessment: Condo insurance also often includes loss assessment coverage, which can help pay your share of damage to common areas. This doesn’t apply to homeowners insurance since there are no common areas.

Condo insurance vs. homeowners insurance cost

So, how much is homeowners insurance and condo insurance? 

Homeowners insurance costs an average of $2,601 per year or $217 per month in 2024, according to Insurance.com. (For comparison, average rates were around $2,377 per year in 2023.) Premiums vary widely by location, with the highest costs in Oklahoma, Kansas, and Nebraska and the lowest in Hawaii, New Hampshire, and Vermont.

Condo insurance costs are much more affordable. Insurance.com reports that average rates are $656 annually or about $55 monthly. Costs are influenced by factors like your condo’s location, your master policy, and the coverage amounts you choose. 

States like Wyoming, Vermont, and Maine tend to have the lowest condo homeowners insurance rates, while Louisiana, Oklahoma, and Texas are among the most expensive.

Tips on choosing the right policy for you

Whether you need homeowners insurance or condo insurance, you’ll want to ensure you’re not over or under-insured. Use these tips to make the best choice:

  • Understand your property requirements: Your mortgage lender will have minimum insurance requirements you’ll need to meet. For condo homeowners insurance, you’ll want to base your coverage amounts on what your condo association’s master policy doesn’t cover. (Some HOA policies cover built-in appliances and cabinets, others are just to the drywall.)
  • Assess your personal property and liability needs: Think about the value of every personal item you own and whether you want actual cash value or replacement cost coverage. You should have enough liability protection to cover your net worth and any assets you own.
  • Compare quotes and coverage options: Ideally, you should compare quotes from at least three insurance companies. Insurers all use different underwriting models, so your rates can vary widely from one place to the next.
  • Explore discounts and savings opportunities: Take advantage of each and every discount you qualify for to keep premiums low without sacrificing protection. This could include bundling policies (like condo and auto insurance) or installing safety features (like alarms). In most states, a good credit score can also reduce your premiums.
  • Get help: If you’re unsure about condo vs home insurance or what coverage you need, an insurance agent can help you customize a policy that’s right for you.

Still have questions?

Interested in learning more about homeowners insurance vs condo insurance? Here are answers to some frequently asked questions to help you navigate your options with confidence.

Why is condo insurance cheaper than homeowners insurance?

Condo home insurance costs are generally less because your policy doesn’t cover as much. A condo insurance policy typically focuses on the interior of your unit, while the condo association’s master policy handles shared spaces like hallways and roofs. 

With homeowners insurance, your individual policy covers your whole property, including the entire structure of a home and outdoor structures, so premiums are higher. These are the biggest things that impact HO-3 vs HO-6 cost.

Do most states require home or condo insurance?

Most states don’t legally require homeowners or condo insurance, but lenders often mandate coverage if you have a mortgage. Insurance is essential to protect your property and financial well-being, even if it's not required. Plus, you’ll need it to cover your belongings and liability. 

Which area is not protected by most homeowners insurance?

Most homeowners insurance policies don’t cover flood damage. If you live in a flood-prone area, you’ll need separate flood insurance to protect your home and belongings from water-related losses.

Why did I buy a condo instead of a house?

You might have bought a condo instead of a house for several reasons. Condos can be a more affordable and lower-maintenance option, especially if you’re a first-time buyer or looking to downsize. They also offer perks like shared amenities and centralized locations. But you’ll need to weigh the pros and cons, including the cost of condo association fees and loss assessments.

Is condo insurance included in the mortgage?

No, condo insurance isn’t included in your mortgage payment. However, some lenders allow you to escrow the insurance costs along with your mortgage payments for convenience. If you escrow, these payments will be rolled into one sum you pay your lender each month.

Is condo insurance different than homeowners insurance? 

The main difference between homeowners vs condo insurance is what type of property each policy is designed for. Condo homeowners insurance is for condo owners — people who own a unit inside a condominium, apartment building, or townhome. In other words, a space where your unit shares walls with another unit. Homeowners insurance isn’t for condos but for standalone single-family properties. Both provide protection from specific events like windstorms, hail, fire, theft, and the weight of snow and ice.

Is condo insurance the same as renters insurance?

No, condo insurance is for people who own condos, and renters insurance is for anyone who rents a home—whether it’s a condo, townhome, single-family home, duplex, loft, or apartment. Renters insurance covers just your personal belongings and liability. The condo owner is responsible for having separate condo insurance for the property to protect the inside of the unit. 

Any questions?
Ask away - we're here to help.
Email us
Hippo

Social Media

Get the App

app QR codeScan me

© 2025 Hippo Enterprises Inc.

Hippo Insurance Services (“Hippo”) is a general agent for affiliated and non-affiliated insurance companies. Hippo is licensed as a property casualty insurance agency in all states in which products are offered. Availability and qualification for coverage, terms, rates, and discounts may vary by jurisdiction. Any estimated premium savings are based on the application of discounts which are subject to availability and qualification. Smart home discounts are subject to additional qualification, conditions, and restrictions. We do not in any way imply that the materials on the site or products are available in jurisdictions in which we are not licensed to do business or that we are soliciting business in any such jurisdiction. Coverage under your insurance policy is subject to the terms and conditions of that policy. Coverage and coverage amounts selected are the decision of the buyer.

Installing and activating the sensor kit will result in your being a customer of a third party that is not affiliated with Hippo. Hippo is not responsible for any acts, errors, or omissions of such third-party or the operation or effectiveness of the sensor kits provided, or any loss or damage of any kind that you may suffer as a result of your installation and use of the sensor kit or engagement with such third party. We encourage you to review the terms of use, privacy notice and any additional notices provided by the third party prior to installing and activating the sensor kit. The terms of your engagement with the third party are solely between you and such third party.