Condo and Homeowners Insurance: Key Differences

Patty Robinson got a great deal on her townhouse in Charlotte, N.C. It needed some updating, but she didn't mind investing in new carpeting, paint and window treatments, because that would make it feel truly like her own. She planned ahead and was careful to take a detailed inventory of her belongings so that she would have enough insurance to replace everything, should the need arise.

What she didn't plan on was a pipe bursting in an upper-level exterior wall while she was away on a business trip. She thought her foresight in getting condo insurance would protect her, but she didn't anticipate what would happen if there was a leak from an exterior wall. That is when she learned the harsh truth about the difference between condo and homeowners insurance.

If you're a condo owner, it's important to know these differences from the start: