When you are faced with the decision of whether to buy a townhouse or a condo, you may feel like there are subtle differences. However, these differences expand beyond the ownership and the design of the homes. Townhouse insurance and condo insurance are also different. Before you purchase your insurance, make sure you understand the differences so you can make the best choice.
Ownership Differences
One of the most significant differences relates to the ownership of the property. When you purchase a condominium, you are buying a specific space within the building. You don’t own any of the property on which the building stands by yourself. That property is owned as a group with the other condo owners. However, when you purchase a townhouse, you own the property under and immediately around your property. This means your townhouse insurance must cover the belongings you keep within your home, the building and the property itself. With condo insurance, you only need to cover your personal property, and permanent fixtures within your condo.
Finding the Right Insurance
Because townhouse owners own the property surrounding their home, as well as the building, they require more insurance to cover the additional costs. For instance, if a fire damages your condo, you only need to file a claim for the interior features and your belongings. However, if a fire damages your townhouse, you will be responsible for replacing more than just your own belongings. You will also have to replace the structure as well. In addition, you need to purchase liability insurance to cover injuries that occur both inside your home and on your property.
Talk to an Experienced Agent
Townhouse insurance is similar to homeowner’s insurance because it needs to cover both your personal belongings and the structure of the building. However, many people don’t understand the difference between townhouse and condo insurance. They may view both types of housing as similar. When you work with an experienced agent, you can feel confident you will get the right type of insurance so you have the necessary coverage. If you purchase the wrong amount of insurance, you may not realize it until it is too late, leading to financial difficulties. If you’re thinking about buying a townhouse over a condo, you need to make sure you understand the differences, particularly when it comes to insurance. Purchasing townhouse insurance requires additional coverage over what you would need with a condo. This is because you also own the property and the building itself, while condo owners only own the interior of the condominium. Understanding these ownership differences is just a part of the process. You also need to know what types of coverage, as well as how much you need, so you won’t meet financial ruin when disaster strikes. Do you own a townhouse or are you thinking about buying one? Contact us at Steven Graves Insurance. We understand your needs and will help you make the right choice.