If you own a property in San Diego, it is easy to assume that there is a generic type of property insurance that will cover your home regardless of what type of property it is. While all residential homes are covered by homeowner’s insurance in San Diego, CA, individuals who buy a condo will need to purchase a different form of property insurance called condo unit owner’s coverage. There are a few key differences between home and condo insurance that you should be familiar with to understand why a single policy cannot be used interchangeably.
The Key Differences in Dwelling Coverage
Dwelling coverage is where the most apparent differences lie. If you buy homeowners insurance, the policy will provide dwelling coverage which will pay to repair or rebuild the entire structure of the home if it is damaged by a covered loss. This includes the foundation of the property, walls, hallways, bedroom and even fences, sheds and carports. If you own a condominium, you do not own the entire structure. Technically, you own your unit, which is defined as everything from the drywall in. Everything else is common grounds and covered by the Homeowner’s Association. This is why your condo building protection will be much lower than the same sized detached home.
Loss Assessments for Condo Owners
Another major difference is that a home policy does not include Loss Assessments coverage because it will not apply. If you own a condo, the HOA has the right to assess you a portion of a loss if it occurs in a common area. Your policy will pay for this assessment if you have coverage.
What Types of Coverage Are the Same?
Personal property coverage is offered under each policy form. The only difference between condo and home personal property cover is that you choose a specific value under your condo policy and your home coverage will provide you with 75 percent of your dwelling cover.
Liability coverage is also the same in a personal sense. If you are found liability for damage or an injury, you can file a claim to protect yourself no matter where the claim happened. The only difference is that you are not responsible for liability claims that happen in common areas in the complex when you own a condo.
How to Move Forward
Now that you know the major differences between condo and home insurance, you can understand why premiums differ. Be sure to ask your San Diego insurance agent which perils are covered, what exclusions apply and shop around for the best policy.
For more information or to talk to a San Diego insurance specialist, contact American Tri-Star today at 619-272-2100 or visit our website at www.americantristarinsurance.com. We can help walk you through your affordable policy options, helping you find the one that offers you the most appropriate coverage for your needs.