Condo Insurance vs. Homeowners Insurance: What Arizona Residents Need to Know

Buying a condo in Arizona offers a perfect mix of homeownership and low-maintenance living—but it also comes with unique insurance needs. Unlike traditional homes, condominiums share common walls, spaces, and structural components with other units, which affects how insurance coverage works.

If you’re moving into a condo or reassessing your current policy, here’s what you need to know about how condo insurance differs from standard homeowners insurance—and why choosing the right policy matters.

What Kind of Insurance Do Condo Owners Need?

Coverage is typically split between two policies:

• The Association’s Master Policy: Held by the condo association, it covers common areas like the building exterior, hallways, elevators, and amenities such as pools or gyms. It may also cover some structural components of your unit.

• Your Personal Condo Policy (HO-6): This is your policy as a unit owner. It covers everything inside your condo: walls, flooring, cabinets, appliances, furniture, and personal belongings. It also includes personal liability if someone is injured inside your home.

Because condo insurance must fill the gaps left by the association’s policy, it’s important to understand what your master policy covers.

What Does Condo Insurance (HO-6) Typically Cover?

Condo insurance, also known as an HO-6 policy, is designed to protect what’s inside your unit and fill the gaps left by your condo association’s master policy.

• Structure (Exterior): This part of the condo is usually covered by your HOA’s master policy, so your personal condo insurance doesn’t need to include it.

• Interior Fixtures: Anything inside your unit—such as walls, flooring, cabinets, and other built-in features—is covered under your condo policy.

• Personal Belongings: Your condo insurance protects your personal items, including furniture, electronics, clothing, and more.

• Shared or Common Areas: These are maintained and insured by the HOA. Your policy won’t cover damage or incidents in hallways, lobbies, or exterior spaces.

• Liability Inside Your Property: If someone is injured in your condo, your HO-6 policy will help cover legal fees, medical costs, or settlements.

• Liability Outside Your Property: Condo insurance typically does not cover liability claims that occur outside your unit.

• Temporary Living Expenses: If your condo becomes uninhabitable due to a covered event (like fire or water damage), your policy can pay for hotel stays and other temporary housing costs.

• Upgrades and Improvements: Any upgrades you’ve made—such as granite countertops, custom flooring, or remodeled bathrooms—are covered, as long as they’re listed in your policy.