Condominium owners and renters face the same risks as other homeowners, which is why condo insurance and renters insurance exist. However, many people in Mechanicsburg, PA, who need condo insurance or renters insurance usually pick the wrong one because they don’t know the differences between them. Let Grove Financial & Associates Inc. clarify the differences for you.
1. Who Needs Condo Insurance vs. Renters Insurance?
If you own a condominium, you need condo insurance. There are two types of condo insurance, the master policy and the personal condo insurance. The master policy is a condo insurance policy covering the entire condominium complex and is usually taken by the condo association. All the condo owners in the association contribute towards paying the master policy premiums. A condo owner takes the personal condo insurance for their condo unit, and only they pay the premiums on the policy. In contrast, renters insurance is purchased by the tenant renting the condo unit as an apartment.
2. What Does Condo Insurance vs. Renters Insurance Cover?
Master policy condo insurance paid for by the condo association covers the damage to the building, including its structure, exterior, and shared spaces like elevators and common areas. It also covers shares parts of utilities such as electrical connection and plumbing. A personal condo policy will cover damage to the condo that affects the space inside and isn’t owned by the tenant. A renters insurance covers the personal belongs of the tenant living in the apartment.
Are Condo Insurance and Renters Insurance a Requirement?
When purchasing a condo, most condo associations will ask you to pay for a master policy, just like every other condo owner. They might also ask you to get personal condo insurance, and most banks ask for this policy before approving mortgages. Purchasing renter’s insurance is usually the tenant’s choice, but some condo owners have made it a renting requirement.
Do you need condo insurance or renters insurance in Mechanicsburg, PA? Contact Grove Financial & Associates Inc. today.