Condo Insurance vs Homeowners Insurance

Condo Insurance vs Homeowners Insurance

Whether you live in a house or a condominium or are thinking of getting one. You would like have questions about the possible insurance required. Do I

Whether you live in a house or a condominium or are thinking of getting one. You would like have questions about the possible insurance required. Do I get a home insurance or a condo insurance? Or are they same? And do I even need it?

Before we discuss the difference between a Home Insurance and a Condo Insurance, it is important to state that a condominium is not a house as per rules and policies, hence the insurance policy for both differ. As a condominium varies from complex to complex, it is important to get a clear idea about the right coverage for your condo.

There are a handful of the key difference between a condo insurance and a homeowners insurance. At Sandy B Lee Insurance Agency we have worked with several clients in identifying the right insurance for their Condo as well as houses. Let us break down the differences based on the six components associated with homeowner’s insurance. The components are as follows: primary dwelling, other structures, personal property, loss of use, personal liability and medical payments to others.

Let us discuss these components from the condominium point of view:
1. Primary Dwelling: It covers the structure of the condo unit
2. Other Structures: Not usually applicable for a condominium
3. Personal Property: Condo insurance here covers all the contents placed within your condo unit. For example: Your jeweler, clothing and other keepsakes. We advise all our clients to verify their condominium association policy to check what all is already covered as per the policy and what is not.
4. Loss of Use: This component of the coverage comes into consideration, in case the dwelling / condo unit is considered ‘uninhabitable or not fit to live in’ due to damage.
5. Personal Liability: This component ensures that you are covered in a scenario where someone is injured while on your property.
6. Medical Payments: This component ensures that you get covered for all your medical expenses for any injuries that occurred on your property, as discussed in the above component – Personal Liability.

The above stated components discussed a Condo Insurance specifically, whereas things are a slightly different which it is from a homeowner’s Insurance:
1. Primary Dwelling: This component in a homeowner’s insurance covers the entire structure of your house, which includes all the used construction materials along with all the permanent fixtures like cabinets, bookshelves etc.
2. Other Structures: This component is only applicable in case of homeowner’s insurance, where the home owner gets covered for the constructed sheds, detached garages, well house, etc. The insurance covers at a 10% cost of the main house.
3. Personal Property: It covers all the personal belongings of the home owner present inside the house. Valued at 50% of the main structure’s cost.
4. Loss of use: As discussed in Condo Insurance, in a scenario where the house is considered as ‘uninhabitable or not fit to live in’. Homeowners Insurance can cover your additional expenses of renting a temporary house and all the additional costs associated with staying away from home.
5. Personal Liability: This component ensures that you are covered in a scenario where someone is injured while on your property.
6. Medical Payments: This component ensures that you get covered for all your medical expenses for any injuries that occurred on your property, as discussed in the above component – Personal Liability.

As you would have noticed the key differences are in the first 3 components only, while the remaining 3 are the same in case of a homeowner’s Insurance and a Condo Insurance. We are sure you would be now aware of the differences associated with both the insurance policies. All you have to do before you buy the right insurance for your condominium is to review the Condominium Association policy thoroughly to list out all the elements that are already covered, after which you are all set to get the right insurance for your new place.

To know more about the policy you can write to us at sandy@sandyblee.com.

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