Homeowner's vs Contents Insurance? What's the difference?

Question

I bought a condo and the outside structure is covered by an insurance policy which is paid for thru monthly maintenance. What additional insurance do I need to buy to cover the rest of my stuff? What's does one cover that the other doesn't? Is there a difference in price?

Answer 1

OK, a Homeowners policy has six coverages, INCLUDING contents, which is usually coverage C. The Dwelling value is coverage A, cost to rebuild the house.

A CONDOOWNERS policy, also has six coverages - the dwelling value, however, is usually $5k or $10k. The reason a condo policy has building coverage included is because the condo association policy is for the "master building". According to your bylaws, it may cover "studs out", meaning YOU are responsible for drywall, paint, and wallpaper. Typically YOU are responsible for built in refrigerator, stove, hot tub, etc, which are considered "building" rather than contents. Also included in this list would be wall to wall carpeting, recessed lighting, or any other permanent improvements or built-ins you added to your condo. These are NOT covered under the contents coverage.

You should also consider purchasing "loss assessment" coverage, an additional coverage to a condo policy. If there should be a loss that's not covered by the master policy, then the owners are all assessed the repair, divided among them. If it would be something covered under your policy, then your policy will pay the amount that's been assessed to you. Example: some condo master policies are excluding coverage from water seepage through walls, from leaky roofs, etc. If your condo owners policy covers it, and all owners are assessed $5,000 for "loss assessment", your policy would pay it.

Answer 2

Regular homeowner's coverage includes the land (to a degree) and the entire structure, some of which is covered by your HOA in a condo. So you need condo insurance which is materially the same as homeowner's though it excludes the items the HOA covers and should be cheaper.

Content's only may have more limitations, such as liability if your unit causes a fire that burns down neighboring units.

You don't want any policy that leaves gaps in protection.

Answer 3

Most companies offer a policy specifically for condos. It would include minimal coverage for the parts of the structure you would be responsible for, from the interior walls in. It would also cover your personal property. Check with your owners association to find out if you need to add an endorsement to the policy to cover any "common area's"? Prices will vary depending on location of the condo and your claims and credit history. Best of luck.

Answer 4

Your condo bylaws will describe what the condo association's master policy will cover and describe the parts of the building it insures. Every set of by-laws is different. Your condo policy should cover the parts of the building the master policy does not, your personal property and any additions and alterations you make from the way the unit was originally constructed.

Answer 5

If its just an apartment then contents insurance is all you will need. The difference between the 2 is, homeowners protects the homeowner and their interest. Contents insurance covers whats in the apartment or the "contents" of the living space.

Answer 6

The insurance you need covers everything you own inside your home. The other only covers the structure (the building.)

Answer 7

It is called renter's insurance. State Farm Insurance is one company that offers it. It covers all the items inside your home. It usually runs around $50-60 per month for $150,000-$250,000. But this also depends on where you live.

Answer 8

mbrcatz is 100% correct on this one. You need the condo owner's if you own it. If you're only renting the condo, a renter's policy will suffice.