Buying a place to live - whether it’s a high-rise condo or a cozy single-family home — is one of the biggest steps you’ll ever take. But once you’ve signed the paperwork, another key decision awaits: choosing the right type of insurance.
Many people assume all property insurance is the same, but that’s not quite true. The coverage you need for a flat (condo/apartment) differs from what you need for a stand-alone home. Understanding those differences can save you from expensive surprises later.
What Is Flat Insurance?
Flat insurance (known in the U.S. as condo insurance or HO-6 coverage) protects the interior of your unit and your personal belongings. The building’s exterior, hallways, and shared areas are typically insured by your homeowners association (HOA) or building management through a “master policy.”
Your personal policy usually covers:
Interior walls, floors, and ceilings
Fixtures and fittings like cabinets, lighting, or flooring upgrades
Personal property (furniture, electronics, clothes)
Personal liability if someone is injured inside your unit
Loss of use if you have to move out during repairs
So, while the building structure is covered by the HOA, you are responsible for everything within your four walls.
What Is Home Insurance?
Home insurance (often called HO-3 coverage) protects the entire property — the house and everything on the land. Unlike flats, there’s no master policy covering the exterior. You’re responsible for the dwelling, detached structures like garages or fences, your belongings, and liability.
Typical coverage includes:
Damage from fire, wind, theft, vandalism, or burst pipes
Structures like garages, decks, and sheds
Personal belongings
Temporary housing during repairs
Liability for injuries on your property
You can add optional riders for floods, earthquakes, or valuables such as jewelry or art.
Flat vs Home Insurance: Key Differences
Feature | Flat / Condo Insurance (HO-6) | Homeowners Insurance (HO-3) |
|---|---|---|
Structure Coverage | Interior only (walls, floors, fixtures) | Full building and attached structures |
Exterior Coverage | Handled by HOA’s master policy | Owner is fully responsible |
Shared Areas | Covered by HOA | Not applicable |
Liability Coverage | Inside your unit | Entire property |
Premium Costs | Usually lower | Typically higher |
Maintenance Risk | Shared among owners | Solely yours |
Who Buys It | Condo or apartment owners | Single-family homeowners |
Why Flats Usually Cost Less to Insure
Insurers price flat or condo insurance lower because they’re covering less physical structure. Your HOA’s master policy already protects the roof, exterior, and common spaces, which are often the most expensive parts to repair or rebuild.
However, don’t assume cheaper means simpler — you’ll still need to understand where your HOA coverage stops and yours begins.
How HOA Master Policies Work
Most condo or apartment buildings carry one of two types of master policies:
Bare-Walls Policy – Covers only the structure and shared areas. You’re responsible for everything from the drywall inward.
All-In Policy – Covers original fixtures inside units but not upgrades you’ve made.
Ask your HOA or building manager for a copy of the master policy so your own insurer can fill in any gaps.
Common Flat Insurance Add-Ons
Upgrades coverage: If you’ve renovated your kitchen or added hardwood floors.
Loss assessment coverage: Protects you if the HOA charges residents for shared damage (like a roof replacement).
Water backup coverage: For damage caused by sewer or drain backups.
These add-ons can make a big difference after an unexpected event.
When You Need Both
If you own a townhouse or a property that shares walls but isn’t part of an HOA, you might need standard homeowners insurance instead of condo coverage. Likewise, if you rent out your condo, you’ll need landlord insurance or an endorsement for short-term rentals.
How to Save on Either Policy
Bundle policies (home + auto)
Install security systems or smart smoke detectors
Increase your deductible
Maintain good credit
Review coverage annually
A quick call to your insurer each year can reveal new discounts or remove unnecessary add-ons.
Which Policy Is Right for You?
Ask yourself these three questions:
Who owns the exterior walls and roof? → If it’s your HOA, you likely need flat insurance.
Who’s responsible for rebuilding after a fire? → If it’s you alone, you need homeowners insurance.
Do you rent it out? → Consider landlord coverage or short-term rental protection.
The right policy depends on what you own — and what you’re responsible for if things go wrong.
Final Thoughts
While both policies protect where you live, the scope of coverage makes a big difference. Home insurance shields the entire property, while flat or condo insurance focuses on your individual unit and possessions.
Understanding these distinctions ensures you’re not overpaying — or under-protected. Review your building’s master policy, assess your personal coverage needs, and compare quotes annually. A small premium difference today can save you thousands tomorrow.
