One of the most significant distinctions between homeowners and condo insurance is the amount of coverage required. As a homeowner, you’re accountable for the inside and outside, the land, and other structures on your property. Meanwhile, when you own a condo, you’re usually only responsible for the interior of your apartment and your personal belongings.
While condo and homeowners insurance covers many of the same things, there are some variances between the two. Read further to understand the differences and how house insurance and condo insurance can help you safeguard your property.
What is Condo Insurance?
Condo insurance provides coverage for your unit, its contents, your storage locker, as well as personal liability claims if someone gets injured in your unit.
Condo insurance covers the following items in the event of a loss or damage:
- your condo unit’s interior
- your personal belongings
- renovations you or former owners have made to your unit
- additional living expenses if you can’t stay in your unit due to an insurable loss
- other units or common areas (e.g., in hallways and elevators) as a result of an accident within your unit
Any damage, loss, or injuries that occur to or within your condo structure are not covered by condo insurance. For example, if a flood originates from the condo’s rooftop and requires extensive repairs to the building’s overall structure, your personal insurance will not cover it. Instead, the master insurance policy for your building would kick in.
The condo’s overall structure gets covered under the building’s insurance policy or strata. This comprises elevators, common areas, parking garages, and the interior and exterior property.
The insurance for your condo building is included in your condo fees. As a result, a percentage of your monthly payment is dedicated to keeping your policy up to date.
It would be best if you compared your condo insurance against the building’s insurance to determine your lack of coverage. You can then get the extras added to your condo insurance to ensure you’re fully covered.
What is House Insurance?
Because your home and possessions cost you a lot of money, you want to avoid paying out-of-pocket for any unexpected damage to your property, nor do you want to be the victim of a loss or theft. Home insurance can help cover the expense of replacing or repairing your belongings in the event of a loss.
Home insurance covers the following:
- loss and damage to your personal belongings
- coverage for your home and outbuildings in the event of a loss or damage
- personal belongings that get stolen from your vehicle
- when you are the cause of accidental damage to someone else’s property
- injury or damage to visitors to your property
In addition, if your home is damaged and you need to stay in a rental property or hotel for a while, your home insurance will pay your temporary living expenses.
Your home insurance provider will have add-ons that you can get beyond what’s standard to your insurance policy. Research various home insurance providers and ensure you have sufficient coverage for your needs, with protection that includes flooding and earthquakes, for example.
Check our home insurance comparison tool to find the best home insurance corresponding to your needs.