When seeking that ideal home, you've got several decisions to make. For instance, you'll need to establish the kind of dwelling you'll reside in; purchasing a home is a major decision, so you want to ensure you've considered all your options.
Whether you're seeking a free-standing home with a huge yard for the pets and kids or a condominium that permits a more maintenance-free lifestyle, one thing doesn't change: you'll require an insurance policy to protect your personal home and property.
Numerous people presume if that if they're condominium owners, they need a homeowner's policy; however, this isn't the case because insurance designed specifically for condominium owners exists. While the two policies seem similar, here's a look at the differences.
Both condominium and homeowners insurance offer coverage for the dwelling. However, there's a considerable difference between the amount of coverage you'll require and this is where differences exist between the two policies.
With a condominium, you'll probably just require sufficient protection to rebuild the unit's interior, including ceilings, interior walls, and flooring. Anything on the exterior of the dwelling, for instance, communal stairways, exterior walls, and hallways fall under HOA insurance. In some cases, an HOA will cover some of your dwelling's interior portions.
In this case, you'll require a decreased coverage. With a home, coverage will include the total home's cost along with other structures on the property, for instance, fences and detached garages.
The cost of rebuilding a home is typically more than that of rebuilding a condominium's interior. Therefore, homeowners require more coverage than condominium owners do.
Filing a claim for a home is straightforward because it involves filing directly with your insurer. However, if you are a condo owner, your circumstance will determine whether your insurer or the HOA will pay the claim.
For instance, if burst pipes cause damage to your condo's outer wall, this would be the HOA's responsibility. However, if a pipe in your kitchen sink caused the damage, your insurer would cover it.
Both homeowners and condominium owners could be liable in case someone sustains injuries within the property or causes damage to somebody else's property. Personal liability insurance will help both owners cover the cost of claims filed against them under such circumstances.
Nevertheless, a difference exists when it comes to liability. Condominium owners typically won't be liable for any incidents that take place in common areas, for instance, if a visitor falls in the pool area. In such an event, HOA will cover the situation.
On the other hand, homeowners are liable for any damage that takes place on their property. Remember, homeowners don't merely own their home but the property as well. Consequently, they're responsible for any injuries or accidents that take place outside the home and within the property's confines.
For instance, if a visitor trips on the walkway, you would be liable. In this case, the homeowners' liability will cover the cost of such claims.
Coverage for Personal Property
It's important you obtain insurance for your personal belongings if you're a condominium or homeowner. Remember, condo insurance doesn't offer much coverage outside the home, so considering the personal items you own largely determines the coverage you'll require.
Although homeowners policy generally covers more, taking an inventory is important for both types of dwellings to help you determine the property coverage that's sufficient.
Generally, condominium insurance has lower premiums than a homeowners policy. However, this depends on the size and value of your property. For this reason, it's important you discuss the details with your provider.
Regardless of whether you live in a condominium or home, it's best to obtain insurance in the event that something happens to your dwelling or yourself. If you're uncertain about the coverage you require in your situation, ensure you conduct due diligence.