If you own a “dwelling unit” (that is a home), in a condominium type arrangement then you’re going to need what’s known as condominium unit owners insurance, which is slightly different than homeowners insurance. Condominium unit owners insurance is different in that with condominiums, the structure and building are insured by another party. This could be a condominium association, a townhome association, a cooperative, a homeowners association, a planned community, or similar organizations that do that sort of thing. You’ll know before you buy whether you’re going to be subject to that sort of arrangement.
Since the structure and buildings are covered by another insurance policy, condominium unit owners insurance may be cheaper because it covers less. So, the types of things that condominium unit owners insurance will not cover is flood damage, earthquake damage, damage caused by the building settling or damage caused by animals. While flood and earthquake aren’t typically covered by homeowners (you’ll need a rider for those), the list of exclusions on a condo insurance policy is larger than on your typical homeowners policy.
So, when you do your home insurance search, remember that condos (and coops and other similarly organized dwelling units) fall under a different type of insurance.
Post a Comment