The Big Difference between Homeowner’s & Condo Insurance

Q: Gerald, we just bought our first piece a real estate–a condominium unit. We just sent in our first monthly condo association payment–will that cover our insurance? Duane, Rahway, NJ
A: One of the main differences between homeowners and condo insurance is how much the insurance policy protects. Homeowner’s insurance normally includes coverage for both building structure & contents, however, a condominium’s structure is often shared between individual condo owners. When you own a home, you are responsible for both the inside and outside, including the land, garage and any other structures on the property. I’m not exactly sure how your condominium complex is set up, but normally the condominium association pays the annual insurance premiums via monthly condo dues, reserves and working capital and that insurance coverage normally covers the shared structure itself (shared roof etc.), which means that you will need to get a separate insurance policy to cover your personal property and belongings contained within your individual condominium unit. Thanks for your question, Duane.
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