Homeowners Insurance vs. Condo Insurance: What’s Right for You in Chicago?

Property owners in Chicago, IL may be unsure whether homeowners or condo insurance fits their needs. Each policy is designed for a different type of residence and set of responsibilities, and 1st American Insurance Agency can help you find coverage that aligns with your needs.

Differences Between Homeowners and Condo Insurance

Homeowners insurance typically covers the entire structure of a home, as well as personal property, liability and additional living expenses. Condo insurance, often called an HO-6 policy, works differently. Because a condo association’s master policy may cover the building’s exterior and common areas, your individual policy typically focuses on the interior of your unit and your belongings.

Key distinctions can include:

• Homeowners insurance typically covers the dwelling structure, detached structures and personal property, though land itself is not covered under a homeowners policy.
• Condo insurance generally covers interior walls, fixtures and personal property, though coverage can vary by policy.
• Liability coverage may apply in both cases, but limits and terms can differ.
• Loss assessment coverage is typically specific to condo policies and may apply when association costs are passed to unit owners.

Which Coverage Fits Your Home?

Homeowners insurance is the appropriate choice for those who own the building in which they live. Condo insurance is tailored for unit owners in shared properties, especially where a master policy may not cover everything. Taking time to review that master policy can help guide your decisions regarding the details of your coverage.

State-specific Considerations

Illinois does not mandate homeowners or condo insurance by law, but mortgage lenders often require coverage. Condo associations can also set minimum requirements for unit owners under state condominium laws.

Secure A Policy Today

Contact 1st American Insurance Agency to discuss whether you need homeowners or condo insurance and get a no-obligation quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.