Home (Homeowners Insurance), Condo, and Renters Insurance are three different types of property insurance. They are different from each other in terms of the kind of property they cover and the policy terms and conditions specified. In this article, we will discuss the significant differences between Home, Condo, and Renters Insurance.
Homeowners Insurance is a type of property insurance taken out by homeowners to protect their residential property like homes or apartments. A typical home insurance policy covers both the personal belongings, building, and structure of the insured home.
Your homeowners insurance policy provides you with the following major coverages:
Property Damage Coverage
Property Damage coverage reimburses you for the rebuilding or replacement cost of your home if it gets damaged due to:
o Fire
o Wind
o Water Damage (if applicable)
o Hail
o Vandalism
Personal Property Coverage
Personal property coverage protects your belongings and possessions within your insured property against damage or theft, such as:
o Furniture
o Appliances
o Clothing
o Dishes
You can also cover your valuable items like jewelry under your homeowners insurance policy, but for that, you need to buy additional special coverage.
• Liability Coverage
Liability coverage protects you from third-party claims or lawsuits filed against you regarding property damage or bodily injury within the boundaries of your insured property.
• Medical Coverage
Medical coverage reimburses you for the medical bills or treatment expenses if someone other than your family gets injured on your property.
Renters Insurance is akin to Homeowners insurance, but it’s for renters who don’t own the property.
Unlike home insurance, renters insurance doesn’t protect the building and structure of the property. It only protects the personal belongings and possessions of tenants on the property.
Renters must note that a homeowners insurance policy taken out by the owner of the property in which they're living doesn't cover them or their personal belongings in the event when they're damaged or destroyed. Renters Insurance only reimburses the tenants for the replacement cost of their personal belongings that are damaged or lost on the property.
Condo Insurance covers the people who own their condos.
Like renters insurance, your condo insurance policy protects your personal belongings against damages caused by covered perils such as fire, smoke, vandalism, and water damage.
It also provides you with liability coverage that protects you if you're sued by a third-party for bodily injury or property damage to your condo.
A Condo Insurance policy is also called HO6. It's available for condo owners in two different types:
• The Master Condo Policy
The master condo policy or condo association's master policy, is the condo insurance for the entire complex; jointly paid for by every resident. It covers damages to the building of the condo, which is also called dwelling coverage.
The master condo policy is an all-in policy that covers both the exterior and interior of the building along with structures associated with it, such as elevators or common rooms.
• Personal Condo Insurance Policy
A personal Condo Insurance policy provides you with both property and liability protection and is relatively more expensive than a master policy.
Need help navigating your Homeowners Insurance, Condo Insurance or Renters' Insurance needs?
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(978) 241-7950