What Does Condo Insurance Cover? Complete 2025 Guide
Owning a condo can be the perfect balance between homeownership and low-maintenance living — but protecting your investment means understanding condo insurance inside and out. In 2025, coverage options and policy structures continue to evolve, making it more important than ever to know what condo insurance covers, how it differs from homeowners insurance, and what role your HOA insurance plays.
Let’s dive into a clear, practical breakdown so you know exactly what’s protected — and what isn’t.
🏢 What Is Condo Insurance?
Condo insurance, often called HO-6 insurance, is designed specifically for condo owners. Unlike traditional homeowners insurance, which covers both the building and land, condo insurance focuses on protecting your individual unit and personal property inside it.
Your condo association or HOA (Homeowners Association) typically holds a master policy that covers shared spaces — such as hallways, elevators, and roofs — while your personal policy fills in the gaps.
🧾 What Does Condo Insurance Cover in 2025?
Here’s a complete look at what most condo insurance policies include:
1. Interior Structure (Dwelling Coverage)
Covers the interior elements of your unit — walls, ceilings, floors, cabinetry, and fixtures.
If a kitchen fire damages your cabinets or a burst pipe ruins your flooring, your condo insurance helps pay for repairs.
💡 Tip: Always review your HOA master policy to know where your coverage begins. If it’s a “walls-out” policy, you’re responsible for everything inside your walls. If it’s “walls-in,” some interior features might already be covered.
2. Personal Property Coverage
Protects your belongings — furniture, electronics, clothing, appliances, and more — from risks like fire, theft, or vandalism.
In 2025, many insurers now offer replacement cost coverage, ensuring you’re reimbursed for the cost of new items, not depreciated value.
3. Personal Liability Protection
If someone slips in your condo and sues, liability coverage helps pay for medical bills, legal fees, and damages.
This protection extends beyond your home — even if you accidentally cause damage in someone else’s property.
4. Loss of Use (Additional Living Expenses)
If a covered event (like fire or water damage) makes your condo uninhabitable, this coverage pays for temporary housing, meals, and living expenses while repairs are made.
5. Loss Assessment Coverage
This often-overlooked feature protects you if your HOA issues a special assessment for damage to shared areas — like the roof or lobby — that exceeds their master policy’s limits.
⚖️ Condo Insurance vs Homeowners Insurance
| Feature | Condo Insurance (HO-6) | Homeowners Insurance (HO-3) |
|---|---|---|
| Dwelling Coverage | Interior only | Entire home + structure |
| HOA/Master Policy | Shared responsibility | No HOA involvement |
| Personal Property | Yes | Yes |
| Liability Protection | Yes | Yes |
| Cost | Typically lower | Higher due to structure coverage |
Key takeaway:
In the condo insurance vs homeowners debate, condo insurance is more focused and often more affordable since it excludes the structure your HOA already insures.
🏘️ How HOA Insurance Fits In
Your HOA insurance (also known as the master policy) covers the building’s structure, shared amenities, and common areas. However, it doesn’t protect your personal unit’s interior or your belongings.
There are two main types of HOA master policies:
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Bare Walls Policy: Covers only the building’s exterior and shared areas.
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All-In (or Walls-In) Policy: Extends to built-in fixtures inside units (like plumbing or wiring).
Knowing which one your association carries helps prevent duplicate coverage — or costly coverage gaps.
💡 What Condo Insurance Doesn’t Cover
Condo insurance is comprehensive but not limitless. Most policies do not cover:
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Flood damage (requires separate flood insurance)
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Earthquakes (requires separate endorsement)
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Normal wear and tear
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Damage caused by pests or neglect
If you live in an area prone to floods or earthquakes, adding an endorsement or separate policy can save you from major out-of-pocket losses.
💰 How Much Does Condo Insurance Cost in 2025?
As of 2025, the average condo insurance cost in the U.S. ranges from $300 to $800 per year, depending on:
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Location and local risk factors
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Type of HOA master policy
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Value of personal property
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Coverage limits and deductibles
Bundling condo insurance with auto or umbrella policies can often bring discounts of 10–20%.
🧠 Smart Tips for Condo Owners in 2025
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Review your HOA documents annually. Policies change, and so should your coverage.
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Create a home inventory. Keep photos and receipts for faster claims.
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Raise liability limits. Especially if you frequently host guests or rent out your unit.
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Consider extra coverage. For jewelry, collectibles, or high-end electronics.
🏁 Conclusion: Protect Your Investment with Confidence
Your condo is more than a space — it’s a major investment. Understanding what condo insurance covers (and how it differs from homeowners insurance and HOA insurance) ensures that you’re never caught off guard.
