Differences Between Condo & Homeowner Insurance

Irrespective of the kind of home you own, you will typically need some sort of homeowner’s insurance to it, particularly in case you have a home mortgage. All homeowner’s insurance isn’t the same, though, and the kind you need depends on the kind of home you have. For instance, several differences exist between the condominium type of homeowner’s insurance and insurance for single-family dwellings.

Condominium Insurance

Condominium insurance typically addresses a condo owner’s specific non-communal property ownership requirements. Your personal condo insurance normally covers certain “walls-in” reduction, repair or replacement plus all of your private property. If you’re a condo owner, your condo association’s master insurance policy may cover everything from the home’s statues and walls outward. Your own condo insurance policy, though, might have to cover everything from the “unfinished walls-in,” including flooring and fixtures like carpeting.

Loss Assessments

Condominium insurance transported by condo owners can also be available with loss assessment coverage. Fundamentally, loss assessment coverage at a condo insurance policy insures the policyholder if her condo association levies fees on all owners to get funds to cover a reduction. Normally, condo association reduction assessments occur when associations suffer losses exceeding what their master insurance policies cover. As an instance, your condo association could assess you to help cover $10,000 of uncovered damage to your community’s building exteriors.

Shops Insurance

Conventional homeowners insurance like for single-family dwellings can be as comprehensive as simple as required as the mortgage lender may allow. Normal single-family homeowners insurance insures the whole structure plus all construction materials, including kitchen cabinets and other lasting elements. Most homeowners insurance also covers private property at 50 percent or greater of the worth of the insured home itself. Lastly, most traditional homeowners insurance covers other structures like detached garages and sheds.

Filing Claims

For most homeowners at single-family or similar homes, homeowner’s insurance claim filing is simple and made directly to insurers. If you’re a condominium owner looking at a claim, though, whether your own condo insurance or your association’s insurance pays depends upon the situation. Water damage caused by burst pipes to a condominium’s outer wall would most likely be paid by condo association insurance. Your condo insurance, though, may have to cover water damage caused by a burst kitchen sink pipe.

See related