5 Differences Between Condo and Homeowner Insurance
Regardless of whether you own a free-standing house or a condominium, insurance should be one of your top priorities to attend to. Condo insurance differs slightly from homeowners insurance, so if you’re moving from on to another you need to make sure you keep these differences in mind and adjust your policy accordingly.
Homeowners insurance typically covers an entire plot of land, and thus can cover any free-standing structures on the property, like garages. Condo insurance doesn’t offer this, since your apartment is part of a larger building.
Homeowner’s insurance will usually cover everything about the structure of your house, including exterior walls as well as interior walls and everything contained in the house. In condo insurance, the dwelling limit is usually delineated by the walls of your apartment. Any exterior features such as stairwells, exterior walls, etc. are covered by the Homeowner’s Association which owns the outer building.
Homeowner’s insurance will only cover a portion of the cost of damaged personal items within the home, usually up to around half of what the home is valued at. Condo insurance will cover all personal items and anything that the Homeowner’s Association doesn’t, which may include appliances and flooring in your apartment.
These are usually only discussed in condo insurance, as free-standing home owners don’t buy into a Homeowner’s Association. The dues paid to the HoA cover insurance for any common areas in the building.
Condo insurance is usually cheaper than homeowner’s insurance, since there is less to cover and personal items are less valuable than property structures.
Knowing what your insurance does and doesn’t cover is essential to your peace of mind. Contact us today to discuss your policy and how it can be made to work for you.