Differences Between Condo Insurance and Homeowners Insurance

Do you live in a condo, just bought one or are thinking about downsizing and getting one, you likely have questions about insurance. Do you get condo insurance or is it the same as homeowner’s insurance? And do you even need it?

All excellent question.

To state the obvious, a condominium is not a house. Therefore, the insurance policy is going to be different. Second, rules and policies differ from complex to complex, so be sure to ask as questions to make sure you get the right coverage for your condo.

There are six components in both condo and homeowner’s policies that differ ever so slightly. We will discuss them below.

For a condominium policy:

1.       Primary Dwelling Coverage: Insurance for the structure of the unit.
2.       Other Structures Coverage: Does not usually apply for a condo unit.
3.       Personal Property Coverage: Covers the contents of your unit. Examples: jewelry, clothing,  and furniture. Make sure to check with your condo association policy to see what is covered and what isn’t.
4.       Loss of Use Coverage: Coverage for in case your condo is considered “uninhabitable” due to damage from a loss.
5.       Personal Liability Coverage: This insures that you are covered in case someone is injured or their property is damaged, while on your property.
6.       Medical Payment Coverage: This covers any medical expenses for any injuries from Personal Liability.

For a homeowner’s policy:

1.       Primary Dwelling Coverage: Covers the entire structure, including all construction materials associated and all permanent elements (i.e. cabinets, water heater).
2.       Other Structures Coverage: Covers sheds, detached garages, and so forth. This insurance is valued at 10% of the cost of the main structure (house).
3.       Personal Property Coverage: This covers all your personal belongings inside at 50% of your home’s cost.
4.       Loss of Use Coverage: If your home is deemed “uninhabitable” this covers you until it is fixed.
5.       Personal Liability Coverage: Protects the homeowner if someone injuries themselves on your property.
6.       Medical Payment Coverage: This covers any medical expenses for any injuries from Personal Liability.

It all comes down to ownership. With a condo, you own the unit from the drywall inward, which you're insuring, along with your possessions inside.

You are now aware of the differences, you know what to look for when shopping for condo insurance. Remember to review your condominium association policy to see what is already covered and what you will need to insure yourself. If you have any questions or concerns please don’t hesitate to give our office a call or email us here and we will walk you through the insurance process.  

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