In numerous ways, buying a condo and a home are one in the same. Both give you the freedom of owning your own space, but with each type of property, you are responsible for what happens to it. But just how similar are condo and homeowners insurance? And what are the differences? If your clients are looking for coverage for their condo or home, here is everything they need to know about the two options.
Dwelling Coverage: One of the biggest differences between condo and homeowners insurance is how much of the residence your clients are responsible for insuring. For condo owners, they will likely only be responsible for the interior of their space. The land outside (think the actual building and the surrounding structures) is typically co-owned by each condo owner, and is insured by the homeowner’s association. Because this presents different responsibilities than owning a home, it is important for your clients to have an insurance policy that fits their unique needs.
Liability Coverage: Similar to liability coverage for homeowners, condo owners may be responsible if visitors are injured inside their condo — so your clients will want to ensure they have liability coverage to avoid potentially paying out of pocket if something happens. While condo owners may be responsible for any injuries that occur inside of their home, they do not need liability protection against claims that involve common areas such as the pool or lobby entrance.
Personal Property Coverage: One of the perks of condo living is that the homeowner’s association covers much of the property. However, personal property is a different story. It is in your client’s best interest to insure their personal belongings with coverage that meets their specific needs by determining how much their valuables are worth.
Dwelling Coverage: Unlike dwelling coverage for condo owners, homeowners tend to hold more responsibilities due to the fact that you will need to insure your entire home, both interior and exterior (think carports, fences, sheds and the like). Additionally, because the cost to rebuild a home is typically more expensive than to rebuild a condo, homeowners often require more dwelling coverage.
Liability Coverage: Similar to condo owners, homeowners can be held responsible for any injuries that occur on their property. Unlike condo owners, however, homeowners are responsible for injuries that occur on the land surrounding their home. For homeowners who have pools, etc., this means they will typically need more coverage.
Personal Property Coverage: Just like condo insurance, homeowners will want to have an appropriate amount of personal property coverage. No one wants to be left with nothing to show following a loss, so it is important your clients have the right policy to protect the total value of their belongings. For this reason, it is important for condo owners and homeowners alike to take a home inventory.
Learn More About ASI
ASI is one of the largest homeowners insurance carriers in the United States. Through a network of independent agents, the company offers home, condo, renters, dwelling fire and flood insurance in over half the country, with plans to cover the rest by 2017. Find out more at AmericanStrategic.com.