What's the Difference Between Homeowners Insurance, Condo and Co-Op Insurance?

Co-op, House, and Condo Insurance Differ Based On What You Own

When you own a house, you hold its contents, structure, and land. Condo or co-op owners are only accountable for their own space. A homeowners association insurance policy covers hallways and common areas.

The biggest distinction between co-ops and condominiums is how they're owned and governed. Differences between these insurance plans can be studied by comparing dwelling coverage, personal property coverage, and liability coverage.

Differences in Home Insurance

Home, condo, and co-op insurance vary in how dwelling coverage affects outbuildings. Dwelling coverage includes your walls, roof, ceilings, floors, etc. Pools, sheds, garages, and fences are covered.

Homeowners are accountable for any land structures. Co-op and condo owners are exempt. The condo/co-op association's insurance will cover damages to the fence and pool at your complex.

If you are a condo or co-op owner, your dwelling coverage must cover in-home damage. You'd need insurance if a fire in your condo destroyed the kitchen.

Condo or Co-op Insurance Coverage

Every condo and co-op complex will have insurance coverage covering pools, hallways, and parking lots. In some complexes, the policy may cover your interior.

When you move into a condo or co-op, go over the association's insurance policy with your agent. Sometimes a building policy may cover your property as-built, leaving you to cover renovations.

If you added $10,000 worth of cabinets, you might simply have to pay the extra $10,000. Your condo association policy may not cover your kitchen or other parts of the home besides the ceilings, walls, and floors.

You must thoroughly review your association's plan to determine how much condo/co-op insurance you need. If your insurance overlaps with your association's, you'll overpay. If you're underinsured, you could spend thousands on uninsured damages. If you're still unsure after reading the policy, see a professional.

Differentiate Liability Coverage

Due to the extra structures you own, house owners face more liability risk than condo or co-op owners. People can get hurt on your lawn, pool, or on a trampoline. Liability coverage on a home insurance policy protects you from lawsuits from persons hurt inside or outside your house.

Condo or co-op owners injured in common spaces, such as the pool, are covered by liability insurance. So if you ask a friend to swim in your building's pool and they get hurt, the building is responsible.

As a condo or co-op owner, you may get away with less liability coverage, but we recommend having the same amount as a homeowner.

Medical and legal bills can make someone's injury pricey. We urge customers to acquire enough liability protection to equal their existing and prospective assets.

Personal Property Protection Varies

Personal property coverage may vary between the three insurance. Standard homeowner policies cover 25 to 50% of your dwelling. A $250,000 policy includes $100,000 for personal property. Condos and co-ops don't need $250,000 in dwelling coverage. Personal property coverage of $100,000 may be needed. It depends on your home's contents.

Adjust your co-op or condo personal property limitations to reflect the true value of your goods, as your complex's insurance policy is unlikely to cover them. We propose making an inventory of important items and noting their value. This will help if you need your items replaced after a calamity since you'll have them ready for the insurance company.

Home, Condo, and Co-op Insurance Costs

Homeowners' insurance costs twice as much as co-op or condo insurance. As we explained above, condo and co-op owners don't require as much dwelling coverage, which lowers insurance costs. Average annual homeowners insurance costs $952. Condo and co-op insurance cost $400 to $600.