Condo Insurance vs. Home Insurance: What’s the Real Difference?

Why does it matter to you as a condo or home buyer?

If you've ever found the distinction confusing, you're not alone—and opting for the wrong coverage could cost you thousands.

In this article, you'll discover how condo and home insurance differ, what's included in each policy type, price comparisons for "walls-in" vs. "all-in" condo coverage, and examples to help clarify everything—so you can confidently select the right protection.

Condo Insurance vs. Home Insurance: Core Differences Explained

At a glance, both insurance types offer financial protection for your property, but the key differences arise from the ownership structure.

• Home insurance (HO-3 policy)   covers the entire structure—inside and out—including the land, roof, foundation, and any detached structures like garages or sheds.
• Condo insurance (HO-6 policy)   only covers what's inside your unit. The condo association’s master policy typically covers the building’s exterior, shared walls, roof, and common spaces.

This distinction affects how much coverage you'll need, what you're responsible for, and of course, how much you’ll pay.

Example 1: The Water Leak

Imagine a pipe bursts in your building’s ceiling:

• In a single-family home, your home insurance would cover the ceiling, floors, drywall, furniture, and personal belongings—because you own it all.
• In a condo, your policy might cover only from the drywall inward, depending on the "walls-in" or "all-in" master coverage, with the rest being the HOA’s responsibility.

Understanding your HOA’s master policy is crucial before purchasing or renewing a condo insurance policy.

What Does Condo Insurance Typically Cover?

Condo insurance focuses on:

• Interior walls, ceilings, and flooring (depending on master policy)
• Cabinets, appliances, and fixtures (varies)
• Personal property (furniture, electronics, clothing)
• Liability coverage
• Additional living expenses (if you’re displaced temporarily)

For detailed information, refer to the NAIC Condo Insurance Guide.

"Walls-In" vs. "All-In" Coverage: What You Need to Know

These terms define the condo association’s master policy coverage:

1. Walls-In Coverage : Only covers the building’s structure and shared areas. You, the condo owner, are responsible for everything inside, including walls, fixtures, and floors.
2. All-In Coverage : Also known as "single entity coverage," this includes the unit’s interior original features—like walls, plumbing, and flooring. You're mainly responsible for upgrades and personal belongings.

Price Comparison: Walls-In vs. All-In Condo Insurance

Refer to Insurance.com for detailed Condo vs. Home Insurance pricing.

Example 2: The Renovated Condo

You've upgraded your condo kitchen with granite countertops and custom cabinetry. If the building has all-in coverage, it might only replace your original laminate countertops. You'll need to insure the upgrade value yourself. In contrast, a homeowner covers all improvements, as they own the entire structure.

How to Choose the Right Policy for You

Start by asking:

• What type of master policy does my condo association carry ("walls-in" or "all-in")?
• What's the current replacement value of my personal belongings and upgrades?
• Do I need liability protection or loss of use coverage?

Your responses will determine how much and what kind of insurance you truly need—helping avoid paying for duplicate coverage already provided through your HOA.

Final Thoughts: Choose Coverage That Truly Covers You

Ultimately, the key is knowing where your responsibility ends and your association’s begins. That line—and how well you insure what’s on your side—can make all the difference when disaster strikes.

Now that you understand the real difference between condo and home insurance, don’t leave your coverage to guesswork. Let's discuss it to ensure you're fully protected.

📞 Call us today at (617) 298-0655 to get your free coverage review.