Are planning on buying a property? Well, buying a place to live is not easy as you have to go through a lot of thinking to have a final decision. If you are single, then buying a house may also cause you various maintenance costs as well. So what would be the most efficient way to own a personal place to live with minimum liability well, a condominium is a place that suits you the best. While purchasing a condo unit you must have considered the insurance factor.
Some of the most common questions that arise while purchasing a condo would be, do we need insurance? Is there any separate insurance for the condos? How much does my insurance will cover and what is the difference between the homeowner insurance and the condo insurance?
Well, all of these questions can also be answered by your insurance agent. it is good to go to your insurance agency with prior knowledge. So in this piece of writing, we are going to discuss some of the difference that separates the condo insurance from homeowner insurance.
There are three areas where the main difference between the condo and the homeowner insurance vary. It includes dwelling insurance, liability coverage, and personal property coverage.
It does not matter whether you have a homeowner insurance or a condo insurance, in both the cases you are going to need a liability coverage. Basically, a liability coverage in an insurance policy is to cover the cost if someone gets hurt while at your place. If you opt for the liability coverage in your insurance policy then here comes the difference.
In case of a condo, you only have to opt for the areas within your condo unit. If a person gets hurt in the commonly shared areas like common rooms and hallways then the property owner or the other condo members will share the liability equally. While in case of homeowner insurance you have to take the entire responsibility of the house inside out. So while choosing liability coverage you are actually covering or the outer parts of the house as well.
- Dwelling liability:
As far as the dwellings are concerned the condo residents are only responsible for the areas within their condo unit. If there is any damage to the property outside the condo unit then it will be over by the property owner.
However, as far as the homeowner insurance is concerned, the single insurance will cover the entire property comprehensively. So in event of any damage to the property outside the home, the homeowner is going to get the insurance claim.
Personal property coverage:
The homeowner insurance generally covers the entire home inside out and the condo insurance only covers the inside of the unit. However, when it comes to personal property coverage the policies may turn out to be the same.
In case of a condo, as you only got the inside of your unit and your personal belongings to get the maximum insurance coverage the same rule applies to the homeowners. The homeowners have to determine the personal belongings accurately to get the maximum protection.
Whether you live in a condo or a home, you need insurance. However, you have to decide the range and the coverage so it is always wise to take the most informed decision.