Condo Insurance

The Importance of Condo Insurance

A condo is not the same thing as a house (obviously). Condominiums don’t come with a basement or a backyard. A condo is just an alternative to owning a single family home or renting an apartment. Condo dwellers, unlike homeowners, condo owners own neither the building that they live in nor the land that it’s built on. And for this reason, if you own a condominium, your insurance is a little different from regular homeowners. HOA (homeowners association) carries a master policy that protects the building and pays for accidents that occur in common areas.

How It Works

However, the homeowners’ association policy will not cover liability if a guest is injured inside your house, replace stolen personal possessions after a break-in, or fix the inside of your house in the event of a disaster. Condo insurance provides protection against risks that are not covered by homeowners’ association master policy including fire, theft, vandalism and other perils- depending on the policy. HOA insurance varies from one complex to the next.

How Much Condo Coverage Do I Need?

The level of condominium insurance you need will depend on the type of HOA policy. There are two types of homeowners’ association master policies:

All-in HOA- that covers addition within the interior surfaces of the ceilings, floors, perimeter walls of each individual unit including any installations or fixtures. If your condo is in such a complex, you probably won’t need that much coverage.

Bare walls-in HOA will cover all real property from the exterior frame inwards but won’t cover installation or fixtures of any kind within the unit. Therefore, if you live in such a complex, don’t expect the master policy to cover things like flooring, kitchen fixtures, bathrooms, and granite countertops.

Figure out what type of HOA master policy your complex uses before you purchase condo insurance. After that, purchase necessary coverage. Some common types of plans in condominium insurance plans include personal property protection, liability coverage, building property protection, and loss resulting from water damage/flood.


One of the key benefits of condominium insurance is that it provides protection for the interior of your unit and keeps your personal belongings safe. In addition to that, it provides liability protection in case someone else gets injured in your house.