If you own a home, the onus of its protection, both for its interior and exterior, falls on you. You decide how much coverage you need for each element of your home. However, your coverage needs and scope may differ if you live in a condo unit or a townhouse,
In this blog, we will discuss the types of coverage you need if you live in a condo and how these coverages differ from homeowners insurance coverages.
Condo Insurance and Condo Association Insurance
As a condo owner, you must have your condo insurance, similar to a homeowners insurance policy, that offers coverage for damages and losses by a covered peril inside your condo unit. However, since a condo is a building with several common areas and amenities shared by all condo residents, the condo also requires condo association insurance or a master’s policy. It covers repair and maintenance costs of these internal shared spaces, the building exterior, and in some cases, some aspects of the interiors of each condo also. This insurance coverage, however, is bought by the condo association board.
As a resident of a condo, besides knowing the coverage details of your condo insurance, being informed about any available coverage in the master policy for damages inside your unit by a covered peril can be beneficial for you.
In homeowners insurance, dwelling insurance covers repair or rebuilding costs to the structure of a house and its attached structures. However, in condo insurance, the structural damage is limited to the interiors of your condo and does not include covered damages to other structures outside your unit.
Liability insurance in homeowners insurance covers third-party bodily injury, property damage, and associated legal costs, if any, for an incident that may occur anywhere on the owner’s property. As a condo owner, you are only liable to pay for accidents that occur inside your condo unit, as reflected in your condo insurance’s liability coverage.
Personal Property Insurance
Personal property insurance is similar for both homeowners and condo insurance policies. It covers the repair and replacement costs for your personal belongings for damage or loss by a covered peril.
Townhouses are a row of individual houses with common walls with their neighbors. Like condo owners, they also are part of a community with shared amenities maintained by the homeowners association. Since there is no separate townhouse insurance per se, if you are a townhouse owner, you can protect your home and belongings with the right condo insurance.
Condo or Renters Insurance
You do not need condo insurance if you live in a rented condo. That is the requirement of a condo owner. Instead, you must protect your possessions by buying renters insurance. Besides covering your assets, renters insurance also covers liability charges you may face if someone is injured in your rented condo or you accidentally damage someone else’s property.
Secure Your Home with Pierce Insurance Group!
For more information on homeowners insurance coverage, contact us today. At Pierce Insurance Group, we analyze your unique insurance needs based on your home type and select the best coverage for you.