Condo & Home Insurance – What’s the Difference?

What's the Difference?: Condo & Home Insurance

Buying a condo is similar to buying a home in many ways because you get the freedom of owning your own place, but you also share the building with all the other tenants. So how does insurance work? 

They Key Differences

One of the main differences between home and condo ownership resides in how much of the residence you own, and subsequently, have to insure. When you buy a home, you own the inside and outside of that structure, including the land upon which it sits.

A condo is different, however. You only own the interior of your place. The exterior of the building is typically jointly owned by the tenants, who are part of a condo association which most likely bills you. Because responsibility shifts dramatically when you own a condo instead of a home, condos need condo insurance to fully cover your condo.

Dwelling Insurance

You will need just enough dwelling insurance to rebuild the interior of your unit should it be decimated. Repairs on the outside of the building such as your exterior walls, hallways, elevators, and other common areas fall under the condo association insurance. In some cases, with certain condo associations, the association insurance can assist in paying the interior of your unit to lessen the amount of insurance you need.

Liability Insurance

If you have guests over and they injure themselves on your property, you need liability to cover the medical expenses that come with that injury and the possible lawsuit that may arise. You generally don’t need liability insurance to cover things that happen in common areas like in pools or in the lobby.

You need condo insurance to properly cover your condominium from all risks. For all of your homeowners insurance needs in Dallas and surrounding areas in Texas, visit the professionals at North American Advantage Insurance Services.