Homeowners vs. Condo Insurance
The two different types of home ownership are reflected in the differences found between Single Family homeowner’s insurance policies and Condominium homeowners Insurance. Single Family homes are owned entirely by the Homeowner, including the dwelling structure as well as its contents. Condominium homeowners own their property from the Walls in, with the exterior Walls, and Roof, being owned by the Condominium Homeowners Association.
Single family Homeowners need protection for the whole dwelling in their policy, whereas condo owners generally need to only protect their personal property and any internal improvements that might not be covered by their Homeowners Association insurance policy. Condo Homeowners need to read the governing CC&R (Codes, Codicils and Restrictions) of their Homeowners Association to see for themselves just what is covered by the Associations policy and what is their responsibility. Hopefully the following will generally simplify this question: (X means applicable)
| Single Family | Homeowners Insurance |
Condominium Homeowners Insurance |
|---|---|---|
| Dwelling | X | - |
| Personal Property | X | X |
| Loss of Use | X | X |
| Separate Structures | X | - |
| Liability | X | X |
| Medical | X | X |
| Building Improvements | - | X |
Since many Condo Association policies cover only the exterior of the building, if the Condo Homeowner wants to have protection for the investment they may have made in interior upgrades, or improvements, they should make sure to add this coverage to their condo policy. But, because they don’t need the Dwelling or Separate Structure coverage’s found in Single Family policies, Condo policies tend to be a little less expensive that Single Family Homeowners.
All the other similar coverages (Persona Property, Loss of Use & Liability) require the same consideration in both the Singe Family and Condo Homowners policy. However, your Liability coverage, in a Condo policy, also has the possibility of your neighbors suffering a loss from a fire caused by your unit, more so than in a Single Family Home fire.
If you have any questions feel free to email them to me (ctrowbridge@farmersagent.com) or call me at 650-FARMERS!
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