Tenant insurance vs. condominium insurance

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Whether you own or rent your condo, condo insurance or condo rental insurance is a must. Are you experiencing a cold snap and the pipes burst? Don’t rely on your landlord looking for your new Alienware laptop or replacing the sheepskin rug mom gave you. We’ll walk you through the difference between condo policies and condo rental insurance and what is protected – and not.

What is the difference between tenant insurance and condominium insurance?

It’s pretty simple: when you rent your apartment, you need tenant insurance. If you own your condo, you need a condominium policy.

Tenant insurance is used to protect your personal belongings in a rental property against property damage and theft, and to protect against liability if someone is injured in your rental unit. Tenant insurance includes numerous other benefits, including loss of use, which is reimbursed in the event that you are forced out of your rental.

Renters insurance is not required by law in any state, but your landlord may require you to take out a policy. Your landlord is required to take out insurance on the property, but only insures the structure. All of the content in your rental is subject to your own tenant policy.

Condominium insurance does not include apartment cover and tenant insurance. Your housing association’s master guideline covers the structure of the building.

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What does tenant insurance cover?

Tenant insurance offers protection with four main components:

  • Personal possessions: Your policy covers your personal effects that are not included in your rental. The insurance coverage is extended due to certain dangerous events such as fire or water damage or theft. This also includes your personal effects outside of the company, e.g. B. Items in a storage unit.
  • Liability: Liability covers your legal and extrajudicial defense costs when you cause personal injury or damage to someone else’s property. This coverage also extends to damage or damage caused by your children or pets.
  • Medical payments: If someone in your home is injured, or if you, a family member, or a pet causes injury, medical payments for the victim are covered. And since medical payments in a rental policy are not at fault, the medical bills are sent directly to the insurance company.
  • Loss of benefit: If your rental is damaged due to a covered event and you are evicted from your space, your loss of use will reimburse a portion of your living expenses. This includes hotel stays, temporary housing, meals, and other living expenses.

Tenant insurance goes beyond these main areas and offers additional services. For example, you can choose replacement costs for your belongings versus the actual cash value. This means that if you are willing to pay your premium additionally, your personal items will be replaced at the cost of replacing them with new items rather than at depreciation.

If you have high quality items, typically an item over $ 1,500, you can add separate coverage. This is especially important for items such as jewelry, art, antiques, or similar items.

[Read: Renters Insurance for College Students]

What does condominium insurance cover?

Condominium insurance offers a similar level of protection as tenant insurance. A standard policy would have the same main components:

  • Personal possessions
  • liability
  • Medical payments
  • Loss of benefit

Your condominium insurance should cover anything that is not on your condominium association’s master policy.

Since you own your condo, you need home cover, and condo insurance provides that. As a condo owner, you own everything from the walls to the inside. So if your walls are damaged by a hidden hazard event, your apartment cover kicks in.

Loss rating is another unique condominium policy coverage that you can add to your policy. This provides additional protection for any costs associated with damage to the home, including the building, common areas within the condominium complex, or breach in common areas, which the condominium association will pass on to each individual owner of the unit.

You should note that it is important to thoroughly review your condominium association’s master policies as you may be given a condominium policy to fill in the loopholes in your master policy and your limits may not be that high. It all depends on how comprehensive the master policy is.

[Read: What is Loss Assessment Coverage?]

Best discounts for your tenants or condominium insurance

The good news is that there are several ways you can save on your tenants or your condo insurance. One of the most effective tactics is to use as many discounts as possible. Working with an agent is one of the best ways to confirm that you are getting every possible discount as there are some you may not know about. Some popular discount options are:

  • Bundling: If you’ve already taken out auto insurance, a rental or condominium policy should be inexpensive and it should be possible to add a bundle discount.
  • Pay the whole amount: Many airlines give you a break if you pay your awards all at once – usually six months or a year.
  • Security discounts: If you have an alarm system, latches and smoke detectors in your rent or apartment, your carrier can give you a discount.
  • Paperless: If you go paperless and receive your bank statements electronically, you will reward multiple carriers with savings on your premiums.

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How to choose the right insurance

In order to choose the right policy, comparison shopping is the first step. Compare offers and policy details side by side. Many airlines offer this option online for added convenience. Look for details about coverage limits and rates and make sure you compare apples to apples in the guidelines.

Also, see the number of discounts available in case one provider offers more than another.

Beyond the price, customer service is important. You want your carrier to make it easy for you when you need to make a claim. You can find out by reading the reviews and checking out the companies’ customer service reviews.

If you need additional coverage for high quality items or other specialty items, find a policy that suits your individual coverage needs.

Choosing the right condominium or tenant insurance takes a little research. However, you will be rewarded for your efforts by providing you with competitive pricing and a comprehensive policy.

[Read: Does Renters Insurance Cover Storage Units?]

We appreciate your feedback on this article. Contact us at Inquiries@thesimpledollar.com with comments or questions.

In response to the Covid-19 pandemic, many insurance companies granted relief in the form of percentages on monthly bills and a freeze on cancellations due to insolvency. While not recommended, you can technically adjust your coverage to save money when needed. Again, we strongly advise against it.

Below is how you can benefit from the recently approved Economic Relief Act:

Who can benefit from it?

To qualify for rental allowance under the CARES Act, at least one family member in the household must be unemployed or have a significant loss of income due to the pandemic. The income must be at or below 80% of the median income in your county. You must also be at risk of homelessness.

Who gets how much?

When families fall below 50% of median income, priority is given to rent relief funds. Families can receive rent for up to one year and rent relief assistance in three months in the future under the CARES Act.

How do I apply?

If you need to apply for assistance, the way you do it depends on where you live. If your city or town already has a rental assistance program in place, you will likely use it to apply for new assistance.

You can contact your local housing authority, nonprofit groups, or contact your local representatives to find out where and how to apply. Your landlord may also be able to apply for you – but they will need to get your consent and signature beforehand.

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