A key difference between owning a condo or a home is that you're responsible for insuring. When you purchase a home, you're responsible for the interior and exterior, along with the land surrounding it. With condos, you're typically only responsible for the inside of your living space.
Check out some of the key differences between these two policies.
A single-family house is a home that stands on its own and requires a home insurance policy. A condo is part of a multi-family building, and you only purchase the inside of the house. In a condo, the building's structure, land, and common areas are usually owned by you along with the other condo owners. Those parts are typically insured by the homeowners association.
For this reason, a homeowners insurance would not be adequate for a condo owner. Home insurance provides coverage for the entire house and everything in the house. Condo insurance only covers the inside of the house and the things you own.
A community of multi-family homes typically has a homeowners associates (HOA) managing the community. The HOA holds an insurance policy called a master policy, which protects the structure of each home in the neighborhood. The master policy may just cover the bare walls or it may cover everything inside the property. If your HOA has the former, you should get coverage for the fixtures, appliances, and countertops separately.
Another key difference between these types of coverage is the cost. Home insurance, as you can imagine, costs more than condo insurance in most cases. When you insure an entire home, the insurance company assumes more risk than if you insure only the inside of a house.
The more you know about your home or condo and how your insurance works, the better you can feel about choosing the right coverage. The insurance experts at Jack Stone Insurance Agency can help. Contact us today to get started on suitable coverage for your needs.
