Home Insurance

How Is Home Insurance Different From Condo Insurance

Most homeowners need home insurance, irrespective of whether they own a home or a condo. Insurance provides protection from financial loss due to things such as fire and  theft and many more insured perils. Home insurance isn't mandatory by law but most mortgage holders and banks lend money only after you buy home insurance. If you decide you need property insurance, Tailor Made Insurance Services can help you with personalized and comprehensive insurance products and services specific for the area in which you live.

Houses and condos require different coverages and so, the insurance for both differs in various aspects. The coverage for the actual building is a factor where the two insurances differ the most.

Home Insurance

When you own a house, you own the building as well as the land on which it stands. So, standard home insurance covers your house, yard, related structures and certain personal belongings. It might also cover injuries to any visitor on your property and accidental damage caused by you to someone else’s property. If you don’t have any insurance cover, you will end up paying for all damages yourself.

Condominium Insurance

Condominium insurance covers specifically the damages or losses for the inside of your unit and your storage locker. It also provices coverage for liability claims. Condo associations have a master insurance policy which covers basic building areas such as walls, floors and elevators as well as common areas such as the lobby and gym. Some associations might have policies that cover basic items within each unit such as certain appliances, carpets and cabinets.

Before buying a personal condo policy, it is incredibly important that you first find out what is specifically covered by the insurance policy of your condo association. You can read the condominium declaration or master deed for insurance requirements. It should contain a section describing what insurance the association has purchased on behalf of the insured. Typically, the association insures the real property through “bare walls” coverage or as “built coverage.” In bare walls coverage, the unit owner is responsible for insuring all real property and fixtures from the unit’s exterior framing inward. Whereas in built coverage, the unit owner is responsible for insuring the upgrades or additions. Some associations levy charges on the condo owners if there is a loss to their unit.    

Even if your master condo policy is a comprehensive one and covers more than the basic items, it won’t include the upgrades you have made to the unit. Make sure your condo insurance company is aware of the latest renovations such as upgraded kitchen cabinets, hardwood floors and countertops.

Regardless of whether you own a house or a condo, it is better to insure almost everything you own. You can insure for:

  • Rebuilding costs
  • Replacement value in case of damages from weather elements
  • New home inventory items (you can review them every year)
  • Fine art or high-value jewellery (you can request a separate endorsement for these)
  • Partial loss from break-in, theft of possessions and related damages

Unlike agents who represent a single insurer, we work with various insurance companies,. We can help you choose the most suitable policy for yourself. Coverage varies from one insurer to another. Generally, the property, its contents and the personal liability of the policyholder and close dependants (spouse and children) are covered. 

Contact us for your personal, commercial and recreational property insurance needs. We also provide policies for boats and motorcycles. You can even request our insurance brokers to bundle your home, auto and business insurance.