What is the Difference between Renters and Condo Owners Insurance

So your moving into a new place and you want to get insurance. But do you get Renters insurance, or Condominium Owners insurance? They’re not the same thing, and you should find out which one you want, and which one covers what you want, and need before purchasing anything. In some places, you are required to provide proof of renters insurance before you can move in. If you are not required to have it, it is still highly recommended, especially in todays economy. If there is damage incurred to your building and your being held responsible, the last thing you want is to have to pay for the damage, as well as replace all your personal belongings. If your renting, your landlord is not responsible for insuring the premises you occupy or any of your possessions. When you purchase it, it will cover all your personal belongings, as well as covering any accidental injury or any property damage that you may incur. If you cause any damage to the building that you live in, you will be held responsible, so if you accidentally start a fire because you left the oven on, you will be held responsible for the damage to your building, as well as any others that are also affected by it. Standard plans should also cover any natural disasters that may strike, depending on the area you live in, as well as protecting against electrical surges, water damage from appliances, damage from falling objects(such as aircraft), vehicles, explosions and even civil commotions.Renters insurance is also fairly cheap, so it’s not a major expense to insure all your belongings in the event something goes wrong.

Condominium Insurance is like a Home Owners Policy. It covers all personal property, any improvements you’ve made to the property, and liability in case someone is injured in your house or there is damage. There is also the option to extend your coverage to the trees and shrubs outside your house if you choose. The Condo Association you are under is required to have their own insurance, and that covers the building itself, however, it may not always be sufficient so getting your own coverage is highly recommended if not required. Under some agreements you may also be held responsible for common areas, such as lobbies or hallways, in the event that there is property damage or someone is injured in one of these public spaces. There are two coverages that are unique to and can be included in Condominium Insurance, and those are Condominium Contingent Coverage and Loss Assessment Coverage. Condominium Contingent Coverage is for when the Condo Association may not have enough coverage on your condo. If the coverage isn’t sufficient then the unit owner will be responsible for the difference. Condominium Contingent Coverage covers this difference. Loss Assessment Coverage is when there is damage or loss to a collectively owned condo, and more than one owner is expected to to share in the loss. This could occur if the Condo Associations coverage isn’t sufficient to cover the cost, so Loss Assessment Coverage will cover up to a certain amount of your share of the loss.