Whether you own a home, a condo, or rent either one, insurance is necessary to financially help protect you and your belongings in case of a disaster. However, choosing the right insurance for your needs can be a challenge, especially with all the options out there. If you don’t have the right policy, you may not be covered when you need it. So, in order to be properly covered by insurance, you must understand how condo and renter’s insurance are different.
Differences of Condo and Renter’s Insurance
A condo may be an apartment, a town house, or a penthouse. The defining difference is not the type of property, but the type of ownership that exists. Below are the differences between condo and renter’s insurance.
What Does Renter’s Insurance Cover?
Renter’s insurance will cover several different things that your landlord will not cover. These are broken into three major categories of coverage:
- Personal Property: Both condo and renter’s insurance will cover your personal possessions in your home up to a certain value. This can include furniture, clothing, and food in case of natural disaster.
- Liability Insurance: Liability coverage protects you against legal claims within the coverage of the policy. For instance, if your dog bites someone on your property, these insurances can help cover the costs of any legal damages.
- Additional Living Expenses: Most policies will cover additional living expenses which can cover the costs of other living arrangements if you are unable to live in your rental.
For additional information on what renter’s insurance covers, check out our previous blog, “Renting Your First Home? Consider Renter’s Insurance”.
What Does Condo Insurance Cover?
Unlike renting, when you own a condo, you own everything inside the condo. This includes the flooring, walls, appliances, and pipes. So, in addition to what renter’s insurance covers, condo insurance will generally cover:
- The Interior Walls and Floors: Condo insurance will generally include coverage for the walls and floors in case of an accident.
- Your Appliances: Because you own everything inside the condo, unlike a renter, condo insurance will most likely cover large appliances, such as the fridge and dishwasher. Renter’s insurance does not cover these items because they are the landlord’s responsibility.
While most condo insurance policies will cover the above, it is important to go over your Condo Association’s policies and bylaws, so you do not pay for coverage already provided by the Condo Association. Furthermore, you may need additional coverage for high valued items such as jewelry or electronics.
Which Do You Need: Condo or Renter’s Insurance?
An important rule to follow is if you own a condo, get condo insurance. If you are renting, get renter’s insurance. However, if you’re renting a condo, then renter’s insurance is for you. In the case you have the wrong type of policy, you will most likely not be covered when disaster strikes. So, it is vital to have the right insurance when it comes to your home.
Like homeowner’s insurance, renter’s and condo insurance are important to have in case there’s damage done to your or your property. In order for you to be properly covered by insurance, you must purchase the correct coverage or face the risk of not being financially covered in case of an emergency. If you have any questions regarding renter’s or condo insurance, contact us at TJ Woods Insurance.
