Condo owner insurance is also referred to as "Homeowners Form 6" or "unit-owner" insurance. The major difference between condo owner insurance and homeowners insurance is that most condo owners have insurance through their homeowner's association (HOA) that covers the unit's exterior structure, most commonly known as a master policy. A basic condo owner insurance policy will cover for damages to most of your personal belongings, as well as walls, floors, ceiling, cabinets, etc., which is not covered under the condo association master policy. The important part is making sure you have enough coverage for the interior structure of your unit. You should also consider higher personal liability and loss assessment limits.
There is a significant coverage gap between a condo association's insurance (Master Policy) and your personal condo owner insurance policies. The condo association usually covers the common areas you share with others in your building such as the roof, basement, elevator, boiler, or walkways for both liability issues and physical damage, but does not cover much else. Condo owner insurance covers a condo owner for direct damage to personal property, personal liability coverage, and medical payments coverage as outlined in the policy. It may also provide additional living expenses if you are the victim of fire, theft, or other loss listed in your policy.