A condo insurance policy differs from traditional homeowners insurance. It’s time to know the facts behind condo insurance!
Condo insurance is a unique insurance coverage plan. It’s designed to provide coverage for your personal property. Furthermore, condo insurance can help protect additions or upgrades that you have made to your unit.
If you have upgraded to new cabinets, hardwood floors, or you made other cosmetic improvements, a condo insurance policy can help protect these investments if your building is damaged.
Many condominium communities include a Homeowners Association, or otherwise known as, HOA. If you fall under this category, make sure to consult with your HOA agreement to determine what your policy covers and what you’re responsible for in the unfortunate event of property damages.
What’s the Difference Between Condo and Home Insurance?
The major difference between condo and home insurance is what you are responsible for.
One of the biggest difference between condo and home insurance depend on how much you have to insure. When you purchase a home it’s a huge investment. You’re solely responsible for the inside and outside of your home, including the land your house sits on.
However, when you buy a condo, you’re only responsible for the inside of your property. The outside of your condo, such as the building structure or common areas, are typically owned by you and your fellow community members, but they are insured by your HOA.
What Does Condo Insurance Cover?
The following are coverages that both condo and homeowners insurance policies protect and the main differences between each coverage option.
Property or Dwelling Coverage
Condo Insurance – This coverage typically provides money to repair the interior of your home. The HOA will provide coverage for any damage to the exterior of your condo.
Home Insurance – This coverage typically provides money to repair or rebuild your home if it’s damaged or destroyed by a covered event like a fire or windstorm.
Personal Liability Coverage
Condo Insurance – This coverage will help protect you and your visitors if they are injured in your home. However, if you or someone you know is injured in the condo common areas, such as parks, pools, or lobby entrances your HOA insurance will kick in.
Home Insurance – This coverage applies if someone is injured or their property is damaged and you are to blame. The coverage generally applies anywhere in the world.
Personal Property Coverage
Condo Insurance – This coverage protects your possessions. Your HOA coverage will not protect your personal property in your condo such as electronics, furniture, jewelry, or any other valuables.
Home Insurance – This coverage helps replace these items if they are lost, stolen or destroyed as a result of a covered loss. If you have special possessions such as jewelry, art, antiques or collectibles you may want to talk to your agent about this additional coverage. It provides broader coverage for specific items.
To learn more about condo or homeowners insurance make sure to contact Guffey Insurance Agency, Inc. or request a free online quote today.