Homeowners vs. Condo Insurance: What’s the Difference?

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Buying a condo is very similar to buying a house. Once you become a condo owner or a homeowner, you gain the liberty of owning your personal living space, but your responsibilities will also increase. Think of it as becoming your very own landlord. Routine maintenance, upkeep, and damage repairs become your responsibility.

Thankfully, condo insurance and homeowners insurance exist to help you pay for damage costs, medical bills from injuries that take place on your property, and to protect the value of your personal belongings. However, there are several key differences for homeowners and condo owners to consider since each style of living brings its unique responsibilities and requirements.

Key Distinctions Between Homeowners and Condo Insurance 

Personal Property Protection

As a condo owner, one of your top responsibilities is to insure your personal belongings. Owning a condo typically means that you don’t have to worry about insuring external property as your HOA coverage extends protection to your unit’s structure. However, this does not cover protection for your personal belongings. Keep in mind that the value of your property plays a key role when condo insurance companies create your policy. Evaluating the cost of your possessions can help you decide how much personal property coverage you need. This way, you’ll have an accurate measure of how much it would cost to replace your belongings if needed.

If you are a homeowner or plan to buy a home, you’ll follow the same guidelines by taking an inventory of your valuable assets. Typically, you will require more personal property coverage than a condo owner, especially if you have a family or multiple people living under your roof. Another critical difference between homeowners and condo insurance is the additional coverage needed to protect your home’s structure and any other outdoor property, which leads us to…

Dwelling Coverage

Dwelling coverage is where you will see the main differences between homeowners and condo insurance. Homeowners’ dwelling coverage protects the physical home, including the roof, ceilings, and floors, and any outdoor structures, like pools, sheds, and garages. Since rebuilding a home is often much more expensive than a condo, homeowners insurance plans include much more dwelling coverage than condo insurance.

Dwelling coverage for a condo will look quite different. It protects the interior of your space in the event of a loss, like the aftermath of fire damage, but does not cover repairs to exterior structures, like the property itself, elevators, or common areas. Your HOA insurance coverage covers these costs.

Liability Coverage

Whether you’re a condo owner or a homeowner, liability coverage can help you pay for medical fees accrued from injuries that occur at your home-sweet-home. The difference here is that homeowners need liability insurance to cover accidents that take place indoors and outdoors. If a visitor gets injured by your pool, in your yard, or on your trampoline, your homeowners liability coverage will take effect. Condo owners need less liability coverage than homeowners because their HOA insurance covers claims that involve injuries from buildings’ common areas, like gym mishaps or public pool slips and trips. Condo owners still need liability coverage in case they are found liable for accidents that take place on their property to avoid paying out-of-pocket for pricy medical bills.

ABC Insurance Agencies works with multiple insurance companies to find affordable condo or homeowners insurance for Louisiana and Texas residents. To get a cheap homeowners insurance quote or condo insurance quote today, call 800-708-0123click, or visit a friendly ABC agent near you. We can help you find a reliable policy to protect your home-sweet-home without breaking the bank. There’s always a better choice – we’ll find it! 

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