Two buyers close in Orlando’s Baldwin Park the same week. One buys a single-family house a few blocks from the lake, and the other buys a townhome a short walk away. They assume they need the same kind of policy, and they get quotes that look nothing alike. The townhome is legally a condominium, so the association insures the building and its owner insures what the association does not. The house owner is insuring a whole building, roof to slab. The premium is not the main difference between them. What each policy is for is.
That distinction matters more in Central Florida than many buyers expect. The region has downtown high-rises around Lake Eola, condominium complexes from the 1970s and 1980s near Winter Park, Altamonte Springs and the UCF corridor, newer communities in Lake Nona and Horizon West and plenty of townhomes that could be either condominiums or fee-simple homes in an HOA. The type of ownership, not the look of the building, decides which policy you need, and a policy written on the wrong assumption either leaves a gap or pays twice for the same thing.
Start With What You Actually Own
The first question is legal, not architectural. In a condominium, you own the unit, generally the space inside the walls, and share ownership of the building and common elements with the other owners through the association. In a fee-simple townhome or single-family home in an HOA, you own the structure and the lot, and the association owns only common areas such as the pool, clubhouse and entry walls. A condominium owner needs a unit owner policy, the HO-6. An owner of a fee-simple townhome or house needs a homeowners policy on the structure, usually an HO-3, even though there is an HOA. The declaration of condominium or the community’s governing documents answer the question, and the title work at closing will too. Our article on HOA versus condo association insurance explains the difference from the association’s side.
A House Policy Insures the Whole Structure
On a single-family home, the HO-3 covers the dwelling, other structures on the lot, personal property, loss of use and personal liability. Everything on the property is the owner’s responsibility, including the roof, the exterior, the systems, the fence and the pool. The dwelling limit should reflect what it would cost to rebuild at today’s construction prices, not the purchase price or what the house would sell for, as our article on replacement cost versus market value explains. The owner also controls the timing of the roof, which in Florida decides whether carriers will write the house at all and how a roof claim is settled, as our article on roof age and Florida insurance covers.
A Condo Policy Insures the Gap
The HO-6 covers whatever the association’s master policy does not, and in Florida that line is drawn largely by statute rather than by each building. The Condominium Act requires the association to insure the building as originally installed, but it excludes items within a unit that serve only that unit: floor, wall and ceiling coverings, electrical fixtures, appliances, water heaters and filters, built-in cabinets and countertops and window treatments, along with replacements of any of them. Those are the unit owner’s to insure, along with personal property and any improvements the owner has made. Declarations can shift some details, so the association’s insurance summary is still worth requesting, ideally before closing.
That means an HO-6 needs real dwelling coverage, often called Coverage A or building property. A common mistake is assuming the association covers the building so the unit owner needs only contents and liability. On a unit with tile floors, new cabinets, quartz countertops and upgraded fixtures, rebuilding the interior can add up to a substantial number. Setting the limit requires knowing what the master policy leaves to you, not a percentage of the purchase price.
Loss Assessment Is a Condo Exposure
When an association suffers a loss that is larger than its insurance, or carries a large hurricane deductible, it can assess the owners for their share. On a large building, a percentage hurricane deductible is a big number, divided among the units. Loss assessment coverage on the owner’s policy responds to that, and Florida law requires every unit owner policy to include at least $2,000 per occurrence. That is a floor, not a recommendation, and assessments after a major storm on an older building can run many times higher. Size the limit to the building’s age, its deductible and how many units share it, and confirm how your policy treats assessments that come from the association’s deductible, as our article on loss assessment coverage for condo owners explains. Houses in HOAs face assessments too, usually smaller ones tied to common areas, as our article on condo and HOA assessments covers.
On a Condo, the Building Is Your Underwriting
A house owner can replace the roof, update the panel and file a new wind mitigation form. A condo owner cannot fix the building. The roof, the plumbing risers and the structure belong to the association, and its maintenance, reserves and insurance position decide how much assessment risk flows to owners. Florida now requires milestone structural inspections and structural integrity reserve studies for condominium buildings of three stories or more, and buildings facing large reserve contributions or required structural work carry real assessment exposure for owners. For a buyer, the association’s financials, its reserve study status and its insurance summary belong in due diligence alongside the home inspection, because together they describe the risk you are buying into.
Water Moves Between Units
Water damage is the most common condo claim in Florida, and it rarely stays in one unit. A failed supply line upstairs can damage your ceiling, your floors and the unit below you, and the answer to who pays depends on where the water started, what was damaged and what the governing documents and statute say. Your HO-6 should carry enough interior coverage and liability to handle both directions, as our article on water damage claims in Florida condos explains. On a house, the owner’s policy handles the house, and the only neighbor to worry about is the one next door.
What Both Policies Share
Some things are the same on both. Personal property coverage has the same internal sublimits on jewelry, watches and collectibles, and the same question of replacement cost or actual cash value. Loss of use pays to live elsewhere while a covered loss is repaired. Personal liability is often carried at the minimum because nobody asked, and an umbrella is worth considering on either. The hurricane deductible is a percentage on both and is worth converting to dollars. Flood is excluded from both and needs its own policy. On a condominium, an association’s master flood policy covers the building but not your interior finishes or contents, which matters most for ground-floor units, as our article on whether Florida condo owners need flood insurance explains.
What Owners Should Confirm
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Is your home legally a condominium unit or a fee-simple house or townhome?
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Do you have the right form for it, an HO-6 or an HO-3?
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On a condo, does your Coverage A reflect what it would cost to rebuild your interior and improvements?
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Is your loss assessment limit sized to the building and its hurricane deductible?
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On a house, is the dwelling limit based on current rebuild cost, and what year is the roof?
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Do you carry flood, and on a condo, does the master flood policy reach your unit?
Homeowners and Condo Insurance in Central Florida With Prestige Insurance Group
Prestige Insurance Group writes homeowners and condominium coverage across Orlando, Baldwin Park, Lake Nona, Winter Park, Altamonte Springs, Kissimmee and the rest of Central Florida, as well as in Miami and across our nine-state footprint for clients who moved out of state and stayed with us. If you own a condominium and have never compared your policy with the association’s insurance summary, send us both. Whether your HO-6 picks up where the master policy stops can be answered from those two documents, and it is the most common gap we find on a unit. With access to over twenty homeowners carriers in Florida, we can place either kind of home. Learn more on our condo insurance and Central Florida homeowners insurance pages. Call the office nearest you. Se habla español.
Orlando: 407-993-2331 Miami: 305-969-8776
Frequently Asked Questions
What is the difference between condo insurance and homeowners insurance?
A homeowners policy, usually an HO-3, insures the whole structure. A condo policy, the HO-6, insures what the association’s master policy does not, including interior finishes, improvements, personal property and liability.
Do I need an HO-6 or an HO-3 for a townhome?
It depends on how the townhome is owned. A townhome that is legally a condominium unit needs an HO-6. A fee-simple townhome, where you own the structure and lot, needs a homeowners policy even if there is an HOA.
What does a Florida condo association’s insurance cover?
Florida law requires the association to insure the building as originally installed, excluding items inside units such as floor, wall and ceiling coverings, appliances, water heaters, fixtures and built-in cabinets and countertops.
How much loss assessment coverage should a condo owner carry?
Florida requires at least $2,000, but that is a minimum. Size the limit to the building’s age, its hurricane deductible and the number of units sharing it.
General information only, not legal advice. Coverage forms, master policy terms, sublimits and endorsements vary by carrier, policy and association. Florida statutes governing condominium insurance, reserves and inspections are amended regularly, so confirm current obligations with the association’s counsel. Refer to your actual policy and your association’s governing documents for the terms that apply.
