How Does Condo Insurance Differ From Home Insurance Policies?

One of the most frequent questions that we at Alliance General Insurance Agency, serving the greater Denver, CO area, are asked about condo insurance is, how does condo insurance vary from home insurance? If you are purchasing your first condo, here is some information that you should know about the two primary differences. 

Dwelling Coverage

One of the major differences between condo and home insurance policies is how much dwelling coverage you need. When you have a home, you need enough dwelling coverage to rebuild your entire home. When you have a condo, you are not responsible for the exterior of the building or the other units. You only need enough coverage to replace what is contained in your unit, including the walls, electrical wiring, and floors. This is significantly less than the amount of coverage you need for a home. 

Liability Coverage

The other significant difference is liability coverage. While you may still be liable if someone gets injured in your actual condo, you are not liable if someone is injured outside of your condo, such as in the joint space or on the sidewalk. In this case, the owner of the condo building would be liable, not you. This is not the case with a home, as you may be liable for the entire property, including your front and backyard, and the interior of the home. As such, you typically need much less liability coverage with a condo policy than you do with a homeowners insurance policy. 

When you are in the market for condo insurance in the greater Denver, CO area, let the Alliance General Insurance Agency assist you. Give us a call today to discuss your needs and let us put together a condo insurance policy that meets your needs.