When you’re searching for that perfect home, you’ve got a lot of decisions to make. One of the first decisions is the type of dwelling you’re going to choose to live in; buying a home is a major life decision, so you want to make sure you’re considering all your options. Whether you’re looking for a free-standing home with a large yard for the kids and pets, or a condominium that allows for a more maintenance-free lifestyle, one thing remains the same: You’ll need an insurance policy to protect your home and your personal property. Plus, in the state of Ohio, if you have a mortgage on your house, the state will require you to insure the home for at least the amount of the loan.
The Similarities between Condo and Homeowner’s Insurance
Of course, the process of buying a condo and buying a house are similar in many ways. And, the right insurance policy will provide peace of mind that should the unthinkable occur, the cost to cover damage, plus replace or repair belongings, is taken care of.
Home insurance, regardless of whether it’s for a house or a condominium, will protect you financially against the following:
- Loss due to fire, theft or vandalism; this includes if the home is deemed uninhabitable due to damage
- Personal liability: If an injury is incurred on your property, insurance will also provide coverage for medical payments
How Homeowner’s Insurance is Different from Condo Insurance
That said, there are some distinct differences between condo insurance and homeowner’s insurance. For example, a homeowner’s insurance policy covers both the interior and exterior of the dwelling, while a condo insurance policy covers only the inside of the unit, including the walls, floors, and ceilings. This is because in a condo community, the exterior of the buildings are covered by the condominium association.
The association purchases a master policy that protects the exterior and common areas, and condo owners incur a monthly fee to cover that policy. In other words, your condominium insurance policy covers only the portion of the building that you own, independent from the other owners. If you’re purchasing a condo, it’s important to read through all the by-laws of the community so you understand exactly what is covered in your monthly association fee.
Secondly, another difference is that in a standard homeowner’s insurance policy, free-standing structures on the property, like garages, fences, sheds or mailboxes are also covered.
Another significant difference between condo insurance and homeowner’s insurance is the cost of the premium. Depending on the size of the condominium, the condo policy could be as much as a third less than the cost of a homeowner’s premium. Why? Well, this is mainly because a homeowner’s insurance policy is comprised of several different options, and the options a homeowner chooses can all affect the cost.
Purchasing a home of any type is a major responsibility, and it’s important to be certain you aren’t under-insured. If you have any questions about the right condo or homeowner’s insurance policy for your home, contact Machor Sage today! Or, request a quote online today.