If you recently bought a new home or condo, then you just achieved an important and exciting milestone in life. Even with all the excitement, you need to remember that you now have the responsibility of paying home insurance or condo insurance. What most people do not understand is that these are two distinctively different types of insurance policies. Although the two options seem similar, below are reasons why home insurance in Edmonton is different from condo insurance in Edmonton.
This is the main difference between the two housing options. It is important to note that home insurance in Edmonton covers the interior and exterior of a home, personal belongings, the property that your home sits on, including the outlying structures, such as garages and sheds.
Condo insurance in Edmonton, on the other hand, typically covers the interior walls and most items in your condo, like furniture, cabinetry, personal belongings, and appliances. On top of the policy, the property owner will be expected to pay condo fees, which cover the unit’s exterior, as well as other shared areas of the building.
2. Loss Assessment
While homeowners do not necessarily need Loss Assessment Coverage, condo owners, on the other hand, should consider it, mainly because of the ownership of shared common spaces you typically find in condo buildings. The shared spaces could include a pool area, gym, elevators, and lobby.
The building’s insurance policy mainly covers incidents that take place outside your unit. Nevertheless, if the incident’s cost goes beyond what is covered in the building policy, then owners of condo units are expected to pay the difference. In such circumstances, Loss Assessment Coverage comes in handy, as it protects you from footing the cost.
Premiums tend to vary greatly when comparing a homeowner insurance policy and a condo insurance policy. Of course, the premium aspect is largely influenced by additional factors, such as the property value, as well as its size. Since condo owners generally insure less compared to homeowners (zero exterior coverage, zero land coverage, and smaller units), condo insurance policy premiums are generally significantly cheaper than homeowners’ insurance.
Even though there are slight variations between home insurance in Edmonton and condo insurance in Edmonton, the differences presented are mainly brought about by condo ownership. You should take your time to fully understand why and how the differences come about in the two policies and under what circumstance each policy type is required.
Here are useful tips that will certainly help you to save more on your home or condo insurance premiums:
i. Purchase all your insurance policies (auto and home) from a single provider to enjoy the discounts available for you.
ii. Make as few claims as possible. You first need to check and make sure the claim you make is worth it because making many claims drive up your insurance costs.
iii. Pay annually as opposed to making monthly payments. Bear in mind that you can incur additional fees when you pay monthly.