When you’re able to purchase a place and call it your own, a sense of satisfaction and pride emerges. The process of getting to this point can be difficult, especially when there are so many possible options for what type of property you can own. Whether you own a home or a condo, properly insuring is always a must and today, we’ll be going over the differences between insurance from owning a home to insurance when owning a condominium.
Condominium Insurance Policies
There are two major forms of policies that we recommend purchasing; personal insurance and master policy. Both policies are typically available and provided by the condominium or co-op board you are a part of.
- Personal Insurance Policy: This type of coverage is responsible for protecting your personal belongings, as well as structural improvements. In the case of a fire, theft, or other types of weather-related disaster, you will be covered under the policy as well.
- Master Policy: Provided by the condo/co-op board, this insurance covers the common areas shared with others in your building, such as the roof, basement, elevator (if present), boiler, and walkways for both liability and physical damages.
Condo Repair and Maintenance Responsibility
In certain instances, the owner of the building is responsible for insuring the individual condo units and their standard fixtures. The costs and responsibilities do change depending on the location within the property, meaning that making updates to areas like the bathroom or kitchen would fall on the individual owner of the co-op. Additionally, updates made by previous owners or tenants may also fall under the liability of the current owner as opposed to the building as a whole. Additional coverages can be purchased to provide protection in case of natural disasters and unit assessments, to name a few.
Homeowners’ Insurance Policies
The costs of homeowner’s insurance can vary depending on how much is spent on coverage. A typical policy will include three major components;
- Dwelling: Standard for all types of homeowner’s insurance policies. This specifically covers and protects the structure of your home, including floors, walls, and ceilings, as well as any attached structures, such as a garage or deck. This policy also covers perils, such as hail, fire, and vandalism.
- Contents: This protection ranges from the coverage of furniture to personal belongings like clothing. If a covered incident were to occur, you would receive payment for the value of said items. Click here to learn more about how values are calculated for personal property and the differences between replacement cost and actual cash value.
- Personal Liability: This consists of bodily damage to yourself or any guests that sustain an injury in your home or any property damage as a result of a covered accident.
Taking a Look at Some Differences
- Insurance Coverage: The responsibility for a condo is shared between the owner and the co-op board. Homeowners become the sole proprietors of any liabilities since the property is typically under their name.
- Flexibility: Owning a home provides room for growth and renovation, as well as freedom with noise and pets. Condominiums may have stricter regulations, considering there are neighbors, Homeowners Associations, Charter, and other owners to consider.
Recognizing what types of damages can happen and where the liability for those incidents may fall is extremely important when purchasing insurance. Be sure to talk to your agent about what types of policies may be right for you. At TJ Woods, we get people the help they need by finding the right insurance for their situation. Contact us to find out more.
