Does Condo Home Insurance Offer Different Policies than Homeowner's Insurance?

Technically, if you own a condo then you are a homeowner. Thus it is interesting that homeowner's insurance and condo home insurance is not quite the same thing. In our world of personalized service and specialized pricing, condo insurance is just another example of adding a slick title to the same old thing. Or is it? There are some unique and significant differences between condo ownership and home ownership. And thus, it may make sense for condo insurance to be written in language that makes sense to condo owners.

For instance, there are rules that condo owners have that home owners do not. As a home owner, you can place just about anything you want in your front yard. As a condo owner, there are a whole mess of rules designed to keep everyone safe and the surrounding property clean and free from debris. The rules that are applied to condo owners can help bring the cost of condo home insurance down versus the cost of homeowner's insurance where human error and neglect is much more likely.

Condo insurance often specifically illustrates that the condo owner can not be held liable for such things that their association fees pay for, such as accidents on the grounds due to poor maintenance. Should an acquaintance break their ankle on the grounds of a condo because there were holes left throughout the property, the association becomes liable for such an injury. The same injury under the same circumstances makes the home owner responsible for the injury.

Using specialized condo insurance can help keep the costs of owning a condo down and keep your liability covered in a way that is practical to you. Just like you would not cover your BMW with a policy written for a Pinto, you shouldn't cover your condo with an insurance policy written for a home.

When seeking out condo insurance (your condo association may or may not be able to assist you) make sure that the specified rules and regulations regarding your condo ownership are written into the policy. A condo insurance policy that covers routine rules without specification can end up being null and void when the time comes to file a claim.

Condo insurance is still relatively new in many insurance arenas. Not all companies have offered specialized condo insurance until recently. Read your policy before your sign it. Make sure that you are paying for coverage that is fair, accurate, and above all, protects you financially in the event of a natural disaster, injury, or loss. Do not simply assume that your coverage will be acceptable simply because you have chosen to carry specialized condo insurance.