Home Insurance Articles
Do Condo Owners Need Different Home Insurance Than Homeowners
2010-01-17
A home is more than just a building, more than even a dwelling place; it is one's sanctuary, and as such is one's most valuable possession. A home is storage for belongings; as it comprises the bulk of one's net worth, it is a main focus for protection. Not all homes however, are stand alone buildings, and not all home insurance is the same. Condos provide a community feeling while providing the security and stability of ownership. Home insurance can be classified into 3 major categories: homeowner's insurance, condo insurance, and renters insurance.
While homeowner's insurance covers the building and everything inside, renters insurance covers predominately the material possessions within the premises. Condo insurance is unique in that it covers parts of both. A condo owner is responsible for only a portion of the building, most specifically the condo itself, but like an apartment renter, the building is a shared dwelling that the tenant is not entirely responsible for. Usually the condo owner's association maintains coverage for communal parts of the building such as the elevators, pool and landscaping. The association's insurance however does not cover accidents that happen within the home and subsequently condo owners should consider obtaining their own insurance coverage. Additionally, the coverage maintained by the association will only cover the original condition of the unit. Any upgrades or modifications to the condo will not be covered even if the unit itself is.
Insurance coverage can include a wide variety of factors that need to be considered when evaluating a policy. The policy should first and foremost cover the property itself, in the case of condos this is the condo itself - the portion of the structure that may or may not be covered by the condo owner's association's insurance. The policy should also cover the possessions of the policy holder that are within the dwelling. Property and possessions are considered standard coverage for insurance policies. Home insurance policies can, however, cover a variety of other detrimental factors such as bodily injury to individuals, protection against weather damage, and in some policies maintenance that relates to the safety of the property may be covered.
Multiple discounts are available to the owner dependent upon the provider of the insurance coverage. Safety measures cover a wide array of factors from dead bolt locks on doors to fire extinguishers and sprinkler systems and usually provide discounts to the insurance premiums. Burglar or fire alarms also may provide discounts to premiums. With a variety of home insurance coverage options, as well as discounts for safety and security, home insurance is a wise investment to protect the most valuable possession one has.