How home and condo insurance differ.
It’s no secret that traditional homes and condominiums are wildly different. Naturally, these differences require differences in insurance coverage. Curious to learn what separates homeowners insurance from condo insurance? Then please read on.
- The Difference Between Home and Condos
First, it’s important to understand what separates home ownership from owning a condo. When you own a home, you are responsible for everything inside the home, the home’s external structure, and the property on which the home is located. In contrast, when you own a condo, you are only responsible for the interior of the unit. The actual structure of the building, the surrounding property, and the complex’s common areas are owned and insured by your condominium association. This split responsibility creates unique insurance needs for the condo owner.
- 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.
This is what you need to know about the differences between homeowners and condo insurance. Do you have further questions about either form of coverage? If so, then contact the experts at ISU-Wissink Insurance in Culver City, California. We are ready to assist you with all your home coverage needs today.