Renting, Owning, or Somewhere in Between? Here’s the Insurance You Need

Whether you're renting your first apartment, closing on your dream home, or settling into a sleek new condo, one thing remains constant: you need insurance. But the type of insurance you need depends entirely on how you live. Condo insurance, homeowner’s insurance, and renter’s insurance all offer protection, but not in the same way.

Let’s break it down so you’re covered, confident, and never overpaying.

What’s the Difference Between Condo, Homeowners, and Renter’s Insurance?

Insurance Type	Best For	Covers the Structure?	Covers Your Belongings?	Liability Protection?	HOA/Building Coverage?
Homeowner’s	Single-family home	✅ Yes (entire home)	✅ Yes	✅ Yes	❌ Not applicable
Condo Insurance	Condo/townhome owner	⚠️ Interior only*	✅ Yes	✅ Yes	✅ Shared (via HOA)
Renter’s Insurance	Apartment or rental unit	❌ No	✅ Yes	✅ Yes	❌ Not applicable

* Condo owners typically cover only what’s "inside the walls"—like flooring, appliances, and interior fixtures. The building’s exterior is usually covered by your HOA’s master policy.

Homeowner’s Insurance (HO-3 or HO-5 Policy)

Who It’s For:

Anyone who owns a standalone single-family home, whether you're living in it or it’s a second property.

What It Covers:

1. Dwelling Coverage: This protects the structure of your home itself: walls, roof, floors, foundation, built-in appliances, and attached structures like garages or decks. If a covered event (like a fire, windstorm, or hail) damages your home, this part pays to repair or rebuild it.

2. Other Structures: Things like fences, sheds, or detached garages are included under this part of your policy.

3. Personal Property: All your stuff inside the house: furniture, electronics, kitchenware, etc. Most policies cover these items even when they’re outside the home (e.g., a laptop stolen from your car).

4. Liability Protection: If someone gets injured on your property or if you accidentally cause damage to someone else’s property, this covers legal fees, medical bills, and settlements.

5. Loss of Use (ALE - Additional Living Expenses): If your home becomes uninhabitable due to a covered loss, this pays for temporary housing, meals, and other living expenses.

What It Doesn’t Cover:

• Floods (you need separate flood insurance)

• Earthquakes (also separate)

• Wear and tear, poor maintenance, or neglect

Condo Insurance (HO-6 Policy)

Who It’s For:

People who own a condominium or townhome. You own your unit, but you share ownership of common areas with other residents, like hallways, lobbies, roofs, and exterior walls.

What It Covers:

1. Interior Structure (Dwelling): Your policy covers "walls-in"; interior walls, ceilings, flooring, cabinetry, countertops, and built-in appliances. This is different from homeowners' insurance, which covers the entire building.

2. Personal Property: Just like a homeowner's or renter's policy, condo insurance covers your belongings inside the unit.

3. Liability: If someone is injured in your condo or you cause property damage to another unit (e.g., a kitchen fire or water leak), this covers costs and legal claims.

4. Loss Assessment: If the HOA’s master policy doesn’t fully cover damage to shared areas (like the roof or lobby), the HOA may bill each condo owner for a portion. Condo insurance can help cover your share.

5. Loss of Use: If your unit becomes uninhabitable, this covers temporary living expenses, just like in a homeowners policy.

Important Tip:

Always ask for a copy of your condo association’s master policy. It determines where their coverage ends and yours begins. There are two main types:

• Bare Walls Coverage: You’re responsible for everything inside your walls.

• All-In Coverage: HOA covers interior fixtures; you cover personal property.

Renter’s Insurance (HO-4 Policy)

Who It’s For:

People who rent a home, apartment, condo, or room, including students or long-term subletters. This is essential because your landlord’s insurance only covers the building, not your stuff.

What It Covers:

1. Personal Property: Everything you own: clothes, furniture, electronics, appliances you’ve added, etc. Covered losses typically include theft, fire, smoke, vandalism, water damage from burst pipes, etc.

2. Liability Coverage: If a guest trips and falls in your apartment or your dog bites someone, your policy covers medical bills and legal defense if needed.

3. Loss of Use: If your rental becomes unlivable due to a covered incident (like a fire), your insurer pays for hotel stays, meals, and other relocation costs.

4. Guest Medical Payments: Covers minor injuries to others on your property, regardless of fault.

Why It’s Smart:

Renter’s insurance is very affordable—usually under $20/month—and can save you thousands in a crisis. Many landlords require it now, but even if they don’t, it’s a wise investment.

Key Takeaways

Living Situation	Type of Insurance	Key Coverage
Own entire home	Homeowner’s	Structure + belongings + liability
Own condo (shared walls)	Condo Insurance	Interior + belongings + liability + HOA gaps
Renting	Renter’s Insurance	Belongings + liability

Special Note for Connecticut Residents

Living in Connecticut means dealing with winter storms, coastal flooding, and older housing stock. That makes the right insurance coverage even more essential.

• Condo associations often carry bare-bones master policies—don’t assume everything inside your walls is covered.

• Renters in college towns (like New Haven or Storrs) often skip insurance—until it’s too late.

• Homeowners along the coast should ask about windstorm and flood endorsements.

Final Thoughts: Protect What Matters Most

Insurance isn't just a requirement—it’s peace of mind. The key is choosing the right policy for your lifestyle so you're never under- or over-insured.

Need Help Choosing the Right Policy?

At Insure Connecticut, we help homeowners, renters, and condo owners find smart, affordable insurance options that actually fit their lives. We’re an independent broker, which means 

We work for you, not the insurance companies.

FAQs: Condo, Homeowners’, and Renter’s Insurance:

1. What’s the biggest difference between condo insurance and homeowners’ insurance? 

The main difference is what you're responsible for. Homeowner’s insurance covers the entire structure of your house, inside and out. Condo insurance only covers the interior of your unit (walls-in), while the building's exterior and common areas are typically covered by your HOA’s master policy.

2. Do I need renter’s insurance if my landlord has insurance?

Yes. Your landlord’s insurance only protects the building, not your personal belongings or liability. If your stuff is stolen or damaged, or if someone is injured in your apartment, renters’ insurance covers you, not your landlord.

3. Is condo insurance required by law? 

Condo insurance isn’t required by law, but if you have a mortgage, your lender will likely require it. Even if it’s not required, it’s highly recommended to protect your belongings, your unit’s interior, and your liability exposure.

4. How much coverage do I need for my personal belongings?

Start by doing a home inventory: list your valuables and estimate their total value. Most policies cover personal property at $20,000–$100,000 as a base, but you can increase limits if needed. Don’t forget to itemize high-value items like jewelry, electronics, and collectibles.

5. Does insurance cover floods or earthquakes?

Typically, no. Flood and earthquake damage are excluded from standard home, condo, and renter’s policies. If you live in a high-risk area, you’ll need to buy separate flood or earthquake insurance.