Insurance Agent, Farmers Insurance, San Francisco Bay Area
Primary difference between Renters Insurance and Condo Insurance is in the ownership of the property. Both policies cover Personal Property, Loss of Use, Medical Payments to Others, and Personal Liability. And both policies allow for additional riders to be attached for specific items such as high value jewelry, gun collections, artwork, and etc. Where the Condo Insurance is different is in the amount of insurance that can be added to cover Building Property.
When you own a Condo, you own everything from the sheetrock in, and the condominium association manages everything from the sheetrock out. So items such as installed dishwashers, ovens, furnaces, and even toilets and showers fall under property owned by the condo owner. Typically renters do not own any of these items, and there is no need or reason to carry insurance for them.
Condo policies may also have broader coverage for Additional Coverage areas, such as for Emergency Repair; Trees, Shrubs, Plants and Lawns, and Separate Structures coverage. When you own a condo, it is important to know and understand what the General Insurance policy the Association holds covers, and how the common areas are classified. For example, what would happen if the association was forced to submit a large assessment on all of the condo owners? Does the General Policy for the Association cover these instances? If not, you'll want a Condo policy that does have this coverage.
As always, it is best to speak with a licensed, professional insurance agent who can help you interpret the policy coverage, identify gaps in coverage, and make sure you have protection for everything you might require.
The difference between Renter's Insurance, Condo Owner's Insurance & even Homeowner's lies in the insurable interest. A renter's policy is going to cover personal property (contents), but not any building coverage... since the renter does not own the building, they do not typically have an insurable interest. However, in some cases, there have been leases that require the tenant to pay for the insurance and taxes - these are called triple net leases. The renter in these cases may have to purchase coverage for the building rented (usually a home). Condos almost always have a condo association. The condo association covenants determine how the condo should be covered. Some associations only cover the exterior walls, leaving the condo owner to cover everything attached to the building including what's between the drywall/sheetrock & exterior. Some associations cover everything up to the drywall/sheetrock, while others even include anything attached to the drywall/sheetrock including cabinets, etc. On occasion, the condo association can assess a property deductible to each individual condo for $10,000; in which case you would want to make sure that amount is added to the your policy. In each case, whether renter's insurance or condo insurance, make sure you obtain the lease or covenants and make sure you don't have any "holes" in your coverage!
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When you own a Condo, you own everything from the sheetrock in, and the condominium association manages everything from the sheetrock out. So items such as installed dishwashers, ovens, furnaces, and even toilets and showers fall under property owned by the condo owner. Typically renters do not own any of these items, and there is no need or reason to carry insurance for them.
Condo policies may also have broader coverage for Additional Coverage areas, such as for Emergency Repair; Trees, Shrubs, Plants and Lawns, and Separate Structures coverage. When you own a condo, it is important to know and understand what the General Insurance policy the Association holds covers, and how the common areas are classified. For example, what would happen if the association was forced to submit a large assessment on all of the condo owners? Does the General Policy for the Association cover these instances? If not, you'll want a Condo policy that does have this coverage.
As always, it is best to speak with a licensed, professional insurance agent who can help you interpret the policy coverage, identify gaps in coverage, and make sure you have protection for everything you might require.