Main differences between homeowners and condo coverage.
While most people understand how traditional homeowners insurance works, they might be less clear on the concept of condo insurance. Because condos combine elements of regular homes and rental apartments, they require a unique form of insurance coverage. Here are some of the ways that home and condo insurance differ.
- Dwelling Coverage
If you own a home, then you need enough dwelling coverage to cover the total cost of rebuilding your home and the other structures on your property (such as fences, carport, sheds, etc.). Because the cost of completely rebuilding a home is considerable, homeowners need to secure high coverage limits which will translate into higher insurance costs.
In contrast, if you own a condo, then you only need enough dwelling coverage to rebuild the interior of your unit. This is because all damages to the actual structure of the building (exterior walls, hallways, elevators, etc.) will be covered by the condo association.
- Personal Liability Coverage
If you own a home, then your personal liability risk is higher than a condo owner’s. This is because you are responsible for all the injuries that take place within your home and on your property. In contrast, condo owners only need to worry about the accidents that take place within their unit. The liability issues that arise in your building’s common areas (outdoor spaces, pool areas, elevators, hallways, etc.) are your condominium association’s responsibility.
These are the main differences between homeowners and condo insurance. Do you have additional questions regarding either of these forms of coverage? If so, then contact the experts at Udell Family Insurance. We are ready to assist you with all your insurance needs today.