Home insurance vs condo insurance
Home insurance vs condo insurance – For people who have spent thousands of bucks on a home, a house and a condo is more or less the same thing for them. It is their home where they plan on spending the rest of their lives along with their families and of course is liable for insurance as well.
In a time when you cannot predict when you may die or face an accident with your property, it is a good and wise idea to buy an insurance policy. Not only does it keep your property safe but also pays for expenses that rather might be difficult for you to pay in hard times.
For you, a house and a condo is the same thing of course because both of these are made out of bricks, consist of a roof and have people living inside it. But when it comes down to insurance companies, they consider both these building as separate entities and have different policies for each.
A home insurance
A home is a four walled structure, sitting alone on a separate land and is owned by a single person or a family. Whatever you do inside or outside its premises, only you are liable for it because no one else owns it but you.
Similarly when it comes down to insurance policy, house insurance covers the expenses of accidents that may cause damage to your property. Why? Because in the eyes of an insurance company, the piece of land where the house sits is owned by a single person and not a group of people. So if the property is damaged because of a hazard or natural disaster, that person will single handedly have to pay for it but with an insurance policy, the company will cover the damages.
A condo insurance
On the other hand, a condo is more like an apartment. It is a building where a group of people reside and every floor is owned by a different person. a person owning a condo is only responsible for the things inside their part of the building or floor, not the entire building of course.
So when it comes to condo insurance, the company will only pay for the accidents that may have damaged the inside of your condo, not the outside of the building. Why? Because as an owner, you are not liable to what happens to the entire building. Just like your actions, you are answerable to whatever is going inside your owned space and hence condo insurance will cover the damages inside your space.
When buying an insurance policy for either a home or a condo, you first need to understand the difference between the two entities from the company’s point of view so that you may not end up confused. Read the policies carefully and know what you are going for so that later on things don’t take an ugly turn for you. ask the insurance company questions to clear your confusion.