(Newswire.net — October 26, 2020) —
We’ll start by stating the obvious. Houses and condominiums may be residences, but they’re different in many ways.
Thus, although the term “home insurance” is used generally, the advisors at https://bstinsurance.com/products/condo remind you that insuring your house differs from getting protection for your condo.
If you’re planning to live in a shared unit or staying in one alone, make sure you arm yourself with the knowledge to get the right coverage. The following pointers will serve as a guide.
https://pixabay.com/photos/condo-balconies-balcony-building-2414328/
Responsibility
As a house owner, you’re solely in charge of ensuring that you have protection for your property and related liabilities.
However, according to the Insurance Information Institute, there are two separate policies in the case of a condominium. One for individual owners and another for the building corporation.
The former covers the interior of your private unit and pays for damages to your residence and personal belongings. The latter, called the master policy, protects the whole building and common areas, including pools, lobby, and hallways.
Please note that this is a general guide. It’s advisable to check with your property management company to clarify which areas are their responsibility and which are yours. You’ll want to ensure that you have sufficient protection to shield you against loss or liability.
https://pixabay.com/photos/forward-storm-damage-roof-549678/
Premiums
The cost of insuring a house can amount to twice as much for the same area as a condominium because of the broader risks it covers. Since the owner of the condo and you share the protection, your insurance payments are lower.
Please note that a portion of the service fee you pay contributes to the master policy, so it’s not free.
Coverage
You’ll notice that the value covered for a house is much higher than that of a condo. The reason is that insurers take into consideration the cost of rebuilding it from scratch.
In your unit’s case, since the protection is only for the interior and the upgrades, the sum insured is lower.
https://pixabay.com/photos/lobby-reception-hall-hotel-346426/
Convenience
As there is only one owner of a house, it’s easier to process an insurance claim. You’ll have all the relevant documents to support your submission.
It can get complicated with condo coverage because it may involve you, the unit owner, and the property management company. When a situation involves more parties to provide details, it’s likely to get messy.
Get the Right Amount of Cover
You’ve invested a lot into your home. You’ll want to ensure that you don’t suffer a massive loss in the event of a mishap.
If you’re a condo unit owner, it’s possible to overlook areas you assume are insured by the corporation when they’re not. Be sure to find out the details so you can fill in the gaps and have peace of mind, knowing you’re fully protected.