Condo Insurance

Thinking about buying a condo in Northwest Indiana or Illinois? First, read this article about the differences between homeowners' insurance, renters' insurance and condo insurance before moving into your new condo in Munster, or Schererville or any of the surrounding areas. When you purchase a condo you automatically have a degree of insurance coverage through the condo complex's master policy. The terms of these master policies may vary between complex to complex. To ensure you are insuring your belongings and unit correctly, you need to understand the limitations of the condo complex's master policy. If you need help understanding the various terms, then Maki Insurance Group will help navigate you through the policy.

Homeowners' Insurance

The difference between homeowners' insurance and condo insurance is that the homeowner is the sole financial party responsible for the entire structure and all of its contents. Therefore, the homeowner's insurance policy covers these perils and hazards:

Exterior and interior damage to the structure and your possessions caused by fire, smoke, windstorms, hail, lightning, explosions, vehicles, and aircraft;

Vandalism;

Damage from thawing ice;

Theft of personal belongings;

Personal liability for insuries that occur on your property; and

Loss of use, if you have to pay to live somewhere else while your damaged home is repaired.

Renter's Insurance

The renters' insurance policy differs from the homeowner's insurance policy because the renter has no financial responsibility for the building, or the interior components. For example, if a fire destroys the structure, you would not have to replace the cabinets. Renter's insurance covers your personal belongings, and protects them from the same perils that homeowners' covers, as well as loss of use and personal liability.

Condo Insurance

Loss of use and personal liability are covered in a condo insurance policy too. Although, with a condo insurance policy you may be financially responsible for the interior components depending on what the master policy covers. The difference between a condo insurance policy and a homeowner's policy is that with a condo insurance policy you are not responsible for the structural componets because they are covered in the master policy.

Take Away

The difference between a condo insurance policy and a homeowners' or a renters' insurance policy is the how the responsiblity for the bulding's structure and interior components is divided. Obtain a copy of the condo complex's master policy prior to purchasing insurance, and contact Maki Insurance Group to help navigate you through the terms.
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