Buying a condominium is a lot like buying a home. You will own the space that you’re living in when you purchase a condo and have the freedom to do just about whatever you want with it. You will also have the option to sell your condo at a later date and make money off it, which is what makes living in a condo different from living in an apartment that you rent.
However, there are some pretty big differences between condos and houses when it comes to purchasing insurance policies for them. That’s why it’s important to understand the differences between condo and homeowner coverage programs as you start shopping for insurance.
The biggest difference between most condo owner and homeowner insurance policies is how much space you will be responsible for covering. With a home, you are responsible for everything that is on the land that you purchased when you bought your house. That includes everything inside and outside of your home, which means that you will need to purchase an extensive insurance policy that is designed to cover you in the event of a variety of different accidents, liabilities and natural disasters that can occur on property.
With a condo, though, you usually don’t have to worry about purchasing an insurance policy that covers what happens outside of your immediate living space. Instead, you will only need to worry about what takes place inside the four walls on your condo. That means you need to cover your portion of the property and your personal possessions, but won’t have to cover the structure as a whole or the property of others or shared within the building. In most cases, condo owners belong to an association that purchases insurance to cover common areas, land and the structure of the building separately which is subsidized through your annual association fees. This means you won’t need your personal coverage to provide more extensive coverage when shopping for insurance for your condo unit.
This can all be a little bit confusing, especially if you’re purchasing an insurance plan for a condo for the first time. The Lewis Financial Group can help make things easier on you by walking you through the ins and outs of condominium insurance so that you know exactly what you’re paying for, as well as exactly what’s covered by your specific plan. Call us at 866-709-5206 today and speak with one of our condo insurance agents about the plan that might work best for you.