It is a common misconception that those downsizing from a single-family home to a condominium in San Antonio, TX, need the same type of policy to cover their dwelling. However, homeowner’s insurance and condo insurance have major differences. Ellis Insurance Agency can explain these differences and guide you to the appropriate policy.
Protecting Your Building
When you own a single-family home, you need to protect the entire building, meaning your insurance policy must cover the exterior, the roof, and the property surrounding it. This is not the case with condo insurance. Your homeowner’s association (HOA) master policy covers damage to your unit’s exterior, roof, building hallways, common areas, and the property surrounding the building. The one exception involves loss assessment fees. More HOAs are implementing this measure, charging their members a percentage of what the HOA must pay if there is a loss involving the common areas. You can add loss assessment coverage to your condo policy to cover this risk.
Your Insurance Responsibilities
Condo and townhome owners are still responsible for covering risks inside their units. This includes liability. While the association’s master policy insures accidents that happen in common areas, the liability portion of your policy covers what happens in your unit. Your condo policy will also cover your personal belongings, such as clothing, furniture, jewelry, electronics, and other valuables. Like a homeowner’s policy, you can schedule high-worth items to ensure they are covered if stolen, damaged, or lost. Familiarize yourself with your HOA policy and the terms of your condo policy to ensure full coverage.
If you’re wondering whether you have sufficient coverage for your condo, contact the experienced agents at Ellis Insurance Agency in San Antonio, TX. Our staff will gladly review your policy and recommend any changes you need for full coverage.
