If you want to have a second home for vacations and long weekends, but you can’t afford to buy a stand-alone house, purchasing a condo is a great compromise. Before you sign your lease with your new landlord, though, make sure that you have a good Augusta condo insurance policy. This type of insurance is similar to homeowner’s insurance, but there are several key differences.
Is Condo Insurance More Than House Insurance?
The cost of both condo and homeowner’s insurance varies based on the property’s size and risk of destruction from climate, crime, and other disasters. On average, though, condo insurance is less expensive because condos tend to be smaller than homes. Additionally, most condos are part of homeowner’s associations, which have separate HOA insurance policies to cover laundry rooms, lobbies, and other communal areas.
How Much Should You Insure a Condo For?
Insure your condo for the amount of money you would need to cover the costs after a disaster or theft. Ask your HOA about whether they have a bare wall-in master policy or an all-in master policy. If your HOA has the first kind, you have to cover all interior structures and your belongings. If it has the second type, you’re responsible for insuring your possessions, but you don’t have to worry about repairing or replacing the building.
Because of these differences, you need more condo insurance for a bare walls-in policy than an all-in policy. Additionally, if you’re taking out a loan to cover your condo costs, your lender may have a minimum limit on your coverage.
How Does Liability Insurance Vary?
For homeowner’s insurance, your personal liability is much higher than with Augusta condo insurance. If someone gets hurt on a property that you own, you’re responsible for paying for their medical bills and any property damage they sustain. Your property includes the inside of your house and anything in your yard, such as your pool and deck.
On the other hand, if you own a condo, your liability only applies to the property you own. As a result, if someone gets injured while using communal property or walking through your parking lot, you’re not liable for their expenses.
How Does Personal Property Protection Vary?
Generally, personal property coverage is lower for condos than for houses because people tend to keep fewer possessions in their condos. If you’re living in your condo full-time or if you have expensive belongings there, you may need a more extensive personal property protection plan.
How Does Dwelling Insurance Vary?
Dwelling insurance covers damage to the physical structure in which you live. If you have Augusta condo insurance, your premiums for dwelling insurance are much lower than for homeowners because your HOA is responsible for the majority of the building.
About SB One Insurance Agency
At SB One Insurance Agency, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 60 years. We are a wholly-owned subsidiary of SB One Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.