Home ownership is wonderful, whether you live in a single-family home or condo. If you own a condo, you might wonder how your insurance differs from home insurance. Here’s a brief explanation, courtesy of Eichelmann Insurance Agency serving the Dallas, TX area.
Outside of Building
When it comes to the exterior of your building, there are some differences between condo insurance and home insurance. With condo insurance, anything on the exterior of the building and surrounding property is not covered by your insurance policy. How it’s covered varies based on how things are set up, but in many instances, a condo owner’s homeowners’ association (HOA) dues include coverage for issues involving the exterior of the building.This is because all of the condo owners in the community jointly own the exteriors of the building and the community’s property, such as the grounds, parking areas, roof, common areas and so on.
Inside of Building
Whether you live in a single-family home or condo, you have your belongings inside its doors. just as home insurance includes coverage for the contents of your home, condo insurance does the same. So this is one aspect of insurance that is the same whether you are in a condo or freestanding house.
When an accident or injury happens in or outside your home, your insurance coverage may be responsible for paying claims related to that. The need for liability coverage is typically higher with a single-family home, because more of the home’s exterior needs to be covered. Meanwhile, at a condo, things like common areas do not need to be included in the individual owner’s condo insurance, because those things are covered by the homeowners collectively, usually through the HOA.
The level of condo insurance you need will vary based on your individual needs. To get more information, contact Eichelmann Insurance Agency serving the Dallas, TX area.