Homeowners insurance covers your residence and its contents, such as furniture, electronics, and collectibles. Every homeowner needs to have insurance. Condo residents are covered under the same condo insurance policies as the other residents in the building. You may have a specific policy for your property inside.
Some building management companies provide a package of insurance coverage for the building, including condo insurance for the residents. For expert advice in Longwood, FL, contact Express Insurance.
How Condo and Homeowners Insurance Vary
Condo owners usually buy condo insurance to protect their investment, while homeowners insurance protects your primary residence. Condo owners may purchase landlord’s insurance to protect against damage or loss to the building caused by tenants, guests, or other third parties.
Some condos may also come with built-in coverage like building warranties or maintenance contracts. While everyone should have insurance, not everyone needs or can afford homeowners insurance. For example, if you own your home outright, have enough savings to cover any repairs, or have significant home equity, you do not need to purchase homeowners insurance.
You are responsible for your home, its contents, and any belongings in the home and can protect yourself from financial ruin by putting your home in an irrevocable trust with a family member or close friend.
The cost of homeowners insurance can vary greatly depending on several factors, including where you live, your credit history, and your risk factors. Reducing your risk factors may help you qualify for a cheaper policy. For example, staying current on your mortgage and reducing your debt may reduce your risk factors and result in a lower-cost homeowners policy.
To protect your investment in the building, condo owners may purchase strata insurance. Condo owners may purchase coverage for the unit itself, the structure, the common areas, and the personal property inside the unit.
While condo owners may feel an affinity for their community-based counterparts, there are significant differences between the two types of coverage. In most cases, condo owners can’t use their homeowner’s insurance to cover their condo.
Homeowners’ insurance only covers the value of your home, while condo insurance covers your belongings inside and outside of the unit. Condo owners typically purchase a policy that covers their unit (or "unit-owner"), not the building. Homeowners insurance typically covers your home and its contents (e.g., furnishings, personal belongings, etc.).
Condo insurance provides coverage for things typical of a condo, like a swimming pool, or a common area, like a lobby or parking garage. It may also include coverage for a unit if it is deemed a common area.
On the other hand, besides covering your home & possessions, homeowners insurance also covers your household. Consult Express Insurance in Longwood, FL, with your inquiries.