Home Insurance: Condo and Renters Insurance

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Categories:Finance Insurance

Homeowners provides a financial cover against disasters and insures the home itself and the personal belongings. It is a package policy that covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people including the damage caused by household pets. Though homeowner's policy covers most of the damages, however there are few exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. While buying your homeowner's policy, always consider buying two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowner's responsibility.

A condominium unit can be an apartment, a town house, or a penthouse. The difference is not in the type of property but lies in the ownership that exists. The owner might own a building of eight apartments, or hold a single deed on the building, the truth is if you rent a space, it is your responsibility to protect and insure your possessions within your apartment. This is where renters insurance comes into play. When possessions are destroyed or stolen, or there is a tragic event at your home, renters insurance will help you overcome the disaster and will help you replace or repair property that has been stolen or damaged, provide emergency lodging, or pay legal fees, depending upon the specifics of your policy. It is very important to remember that a building owner is not responsible for a renter's personal property, legal liability to others within the premises, accidental injury or property damage that might arise within your premises or from your personal actions.

The condominium owns a deed to private living space, including common areas- like entrances, clubhouse, pools, etc. that are frequented by all condominium owners and their guests. The building identified as the condominium association is an entity with power to manage, buy and sell individual units within the building, as well as maintain and manage the property that encompasses the building into an entity. Condominium owners have different insurance requirements which is covered by an insurance policy specifically designed for condominium living. Condo insurance provides coverage for the owner's personal possessions, improvements to the interior of the unit, and legal liability for injury or damage suffered by visitors. Coverage for the building is the responsibility of the condominium association. A condo owner may incur added responsibility for common areas like lobbies, hallways and recreational facilities, and legal liability for a visitor injured there, if the condominium association coverage proves inadequate. Renters insurance and condominium insurance are not same because the properties involved are different. Though both offer protection for personal possessions and legal liability, but there is coverage available to cover the unique circumstances of condominium ownership. The difference between renters insurance and condo insurance comes down to the ownership. In case of the rented property someone else owns the space you live in. You keep your stuff there, so you need insurance to protect it. Whereas in case of condo, the space belongs to you, so you need to insure your stuff and the space too.

Whether you need Home Insurance California, San Diego, or Homeowner Insurance San Diego, there are many insurance professionals that can provide you with the right coverage at a price that fits your budget.

Ron Morgan is the market representative for EIS Insurance. EIS Financial and Insurance Services is full service agency providing , renters insurance, business and commercial insurance from Northridge and San Diego offices.


Janeth Simmons