Condo vs. Homeowners Insurance: 3 Differences Between Condo and Home Insurance
When you purchase a home or condo, having an insurance policy to cover the cost of damages to it is essential. However, not all homeowners insurance policies are the same. There are some important differences between condo and home insurance that you should keep in mind.
With condos, the homeowners’ association holds the insurance for the structure itself, but this doesn’t include permanent parts of the condo, such as cabinets. For homes, the homeowner holds the insurance for the structure, construction materials and any permanent parts of the home. Cabinets and other permanent parts of a condo are covered under the insurance policy’s personal property section.
For homeowners, personal property coverage includes personal belongings that are valued at half of the home’s structure. Homeowners can purchase extra coverage as needed. For condo owners, personal property typically includes everything inside the actual condo that isn’t covered under the primary dwelling section. Since this affects home improvement projects, such as getting new cabinets, condo owners need a higher amount of personal property coverage.
Homeowners insurance includes coverage for other structures on the property, such as garages and sheds. Coverage is usually valued for up to 10 percent of the main structure. Homeowners can get additional coverage if they need it. Coverage for the other structures section of an insurance policy usually doesn’t apply to condos, since these typically don’t have additional structures.
Need more information on the differences between condo and home insurance? Please contact Schumacher Insurance Group to learn more.