Posted on: 19 December 2017
As the owner of a condo, you have two options when it comes to insurance coverages. This would be to purchase homeowners insurance coverage or condo insurance coverage. While the difference between the two are slight, here are the four biggest you will find:
Condo Insurance Covers the Interior: With homeowners insurance, you are getting coverage for both the interior and the surrounding property outside of the home covered. With condo insurance, only your dwelling, that is the interior of the home is covered. This is realistic with most condo properties since you only own the interior of the condo. The reason for this is that the exterior of the condo is owned by the owner of the condo facility, so they would have their own coverage for that.
Condo Insurance Doesn't Cover Other Structures: With homeowners insurance, you are also getting coverage for other structures on the property, such as the shed, fences, detached garages, and more. With condo insurance, this probably isn't needed since the only structure you need coverage for is the condo itself, nothing that is detached from it.
Condo Insurance Has Loss Assessment Coverage: Loss assessment coverage is essential for condo owners because if there has been damage done outside of your own property, you might be responsible for some of the cost. To ensure that you are getting the right amount of this coverage, you always want to know the limits that the homeowners have on their own policy so that you can get the rest covered should the damages result in more than what the limit may be.
Condo Insurance Has Lower Premiums: Since you aren't covering as much property as you would if you lived in a home, you can expect the premiums for your condo to be much less. Of course, to keep costs low, you should consider higher deductible amounts, as well as limited amounts of coverage, essentially only purchasing coverage that you know you need. As a condo owner, you definitely benefit from purchasing condo insurance over homeowners insurance for this reason and chances are, you might even be able to afford more coverage should you feel that it is needed.
When you know the four major differences between condo insurance and homeowners insurance, you can see why condo insurance is definitely worth it if you are living in a condo rather than opting for homeowners insurance. You save more money and get coverage that is more relatable to the type of dwelling in which you live. To learn more, contact services such as State Fund Insurance.Share