How do condo insurance policies differ from
houses?
Condo vs House Insurance — What Your Agent Isn’t Telling You?
Quick answer
Condo insurance (HO-6) protects your interior, personal property, and liability. House insurance (HO-3) covers the entire structure, personal property, and liability. The condo corporation’s master policy handles exterior and common areas. Your policy needs and risks change dramatically depending on which you own.
Key differences explained — plain language
- Who covers the building: For houses, your home policy covers structural damage. For condos, the condo corporation’s master policy covers the building shell and common areas. That means your condo policy focuses on interior walls, fixtures, and upgrades.
- What’s insured: House insurance covers dwelling (structure), other structures (garage, fence), personal property, and liability. Condo insurance insures personal belongings, interior improvements (betterments), loss of use, and liability.
- Deductibles and perils: Condo policies can have different deductibles for unit damage vs. personal property. Check if the master policy is “all-in” or “bare walls” — that determines where your coverage starts.
- Loss assessment: Condo owners can be on the hook for shared losses. A loss assessment endorsement protects you if the condo corporation charges owners for repairs or liability settlements.
Common misconceptions
- “My condo association insurance covers everything.” False. Associations often cover common elements and sometimes walls-in. Many do not cover custom interior work or improvements. You need an HO-6 endorsement for interior and personal property.
- “I don’t need personal property coverage.” Wrong. Personal property is portable and often stolen or damaged in-unit. Schedule high-value items (jewelry, electronics) to avoid sub-limits.
- “All policies are the same.” Not true. Coverage limits, endorsements, and exclusions vary. Deductibles, loss assessment coverage, replacement cost vs. actual cash value make big differences.
Actionable steps you should take now
- Review the condo corporation master policy. Find who pays for walls, fixtures, and common areas. Note the deductible type and limits.
- Match your HO-6 coverage to gaps: interior improvements, personal property, liability, loss assessment endorsement.
- Schedule high-value items and ask for replacement-cost coverage for personal property.
- Compare deductibles: If the master policy has a large deductible for the building, ensure your policy or loss-assessment endorsement covers your share.
- Get a professional review. Ask a market expert to explain exposures and optimize limits.
Why trust this guidance
Tony Sousa has deep, local expertise pairing real estate and insurance to protect homeowners and condo owners. He reviews master policies, finds hidden exposures, and matches HO-6 coverage to gaps so clients avoid surprise assessments and out-of-pocket repairs.
Contact Tony Sousa for a free coverage review and clear next steps: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
