1. The Coverage
understand the difference between condo insurance and home insurance,
you should understand the main difference between these two types of
homes. A single-family house is a home that stands on its own and
requires a home insurance policy.
condo is part of a multi-family building, and you only purchase the
inside of the house. The outside of the house belongs to the
community that owns and manages the neighborhood.
of these differences, the main distinction between these types of
insurance is the coverage they offer. Home insurance provides
coverage for the entire house, both the outside and inside, and
everything you have in the house. Condo insurance covers only the
inside of the house and the things you own. However, there are two
main types of condo insurance.
2. The Master Policy
community of multi-family homes typically has a homeowners
association (HOA) managing the community. The HOA holds an insurance
policy called a master policy, and this policy protects the structure
of each home in the neighborhood.
policies come in two main types. The first type is a bare walls-in
policy, and the second is an all-in policy. An all-in policy covers
more than a bare walls-in policy, and you will need to find out what
type of master policy your HOA currently carries.
a bare walls-in policy, you must get insurance coverage for the
fixtures, appliances and countertops within your condo. With an
all-in policy, the HOA's insurance probably covers these parts of
3. The Costs
other major difference between these types of coverage is the costs
for each type. As you can imagine, home insurance costs more than
condo insurance in most cases. When you insure an entire home, the
insurance company assumes more risk than if you insure only the
inside of a house - insurance companies base rates on risk.
home insurance is different from condo insurance, they do have
similarities, which include the following:
for the things you own
the amount of coverage you want
actual cash value or replacement cost coverage
protection against lawsuits that arise from accidents in your house
are some of the similarities of these two types of policies, and you
can purchase either type from an agency that offers home insurance
thing to understand is that neither type include flood insurance
coverage. If you worry that a flood could destroy your home and your
belongings, you can add flood coverage to either type of policy. This
is something most homeowners should consider purchasing, simply
because floods can devastate an entire household, community and town.
you need insurance for the condo you are buying, contact the experts
We will find the best policy and rates for you and make sure you have
the protection you need. Call us at 800-241-1151 to learn more about
the coverage options we offer.