Real Estate Insights from Real Estate Insiders
Housing plays a vital role in our lives, as we spend more of our time in our homes than anywhere else. These days there are a wide range of housing types one can consider. These homes may be of various types such as a condo house, townhouse or a family house. Each of these houses has their own specific type of Insurance. Insurance is coverage for individual homes from various things like robbery, fire, floods, etc. Insurance can be different for different types of house that one prefers to buy. Big houses have comparably more insurance than small houses.
Two types of homes which are Condo and townhouse have their own Insurance policies covering expenditures of house owners for the future. In order to know about the differences between the two home insurance we first need to ascertain what types of houses these two are.
Here is a deep dive into the differences between Condos vs. Townhouses.
Condominium is a collection of individual home units that have common areas which is to be shared by all residents. Homeowners here own their individual units and are responsible for the total maintenance and expenses that take place. Rest common areas are maintained by the whole group of homeowners by keeping some reserve funds. These funds are used to repair common areas that belong to all homeowners in a condominium.
All condominium homeowners have to go for insurance in order to cover expenses of their individual condo unit. It helps these owners to pay for repairs, damages and any stolen items inside the unit.
Townhouses are much more spacious and comfortable as compared to condominiums. These houses are multi floor homes having at least one or two walls shared with neighboring houses. These houses have their own entrance and owners have a lot of relaxation in terms of ownership of the property. Townhouses are built in rows of many homes best suitable for small families.
Townhouse insurances are more clearly defined in which insurance covers the entire property. It protects homeowners from any damage and repairs that they might come across in the long run. Other liabilities like robbery are also covered by the insurance.
Difference between Condo house and Townhouse Insurance:
Now that we have a clear idea about Condo house and townhouse we can move forward about the differences in the insurance policy between the two. Insurance in general covers for all damages and repairs that owners face with their homes in the long run. This Insurance policy slightly varies when it comes to these two types of homes.
What does the Insurance cover?
Well to know what exactly the insurance policies cover for each of the establishments it is necessary to know what the house owners own themselves completely in their premise.
In a Condominium the interior is covered by the owner. All belongings that are inside the unit of the house owners are covered by the insurance policy. Any damage and repair required in the interior will be covered by the insurance company. Rest of the property is not covered under the owners insurance. This rest of the property is covered by the association.
Townhouses on the other hand have a very different approach where the house owner gets covered for both the interior and the exteriors of the house. As we know that house owners in townhouses have their own entry and exit means the property outside the house also belongs to the owner hence it is covered by the Insurance policy.
Which Insurance Policy is best?
In order to insure a condominium property it is necessary to go for the HO-6. HO-6 Condo Insurance is less insured as compared to townhouse depending on the property individually owned by house owners. There are certain things that are covered under the HO-6 Condo Insurance.
Things inside the unit like interior walls, carpets, countertops, plumbing, cabinets and personal property gets covered under the HO-6 Insurance Policy. It is necessary for every condo house owner to cover their property with HO-6 Insurance Policy.
Townhouses on the other hand have their own insurance policy which is known as HO-3. In the HO-3 Insurance townhouse owners get a wide coverage for their interior as well as exterior property. Any damage, repairs or robbery taking place inside the mentioned property is to be covered by the HO-3 insurance.
Under the HO-3 Insurance house owners can insure a wide list of items which are interior walls, carpets, countertops, plumbing, cabinets, personal property, roof, frame, foundation and many more. The list includes everything that is in the premises of the property.
What is the cost of Insurance?
The cost of insuring a condominium is far less as compared to town hall houses. Condominium covers property only confined to the house unit belongings. The price is minimal which can be anything between $100 to $500 which is sufficient for individuals or low earning families. This cost will cover anything that is confined inside the house unit of the owner. Outside property like hallway, gardens, pools and gymnasium are covered in the insurance. These properties do not have single owners and so does not come under condominium house owner insurance.
Townhouses are beautiful establishments as compared to condo houses which clearly defines the rise in insurance. As we know townhouses have a bigger property which include interior as well as exterior of the house the price of insurance also increases. The price of an average townhouse per year is somewhere between $100 to $1200 dollars all around the United States of America. The insurance covers a lot of items which is clearly mentioned above.
What does this insurance not cover?
We might feel getting our condo houses insured is all that is required for a peaceful stay. It is necessary to ascertain that not all things get covered under the insurance policy. Condo houses insurance does not cover water damages caused by flooding. Make sure before taking any condo house that it does not fall in a flood prone area.
As townhouses are premium insurance cover which include the entire property both interior and exterior there is nothing major that is not covered by the insurance. The price for townhouse insurance is quite higher compared to condo houses and owners get a complete coverage from any damages including damages from floods.
General differences between condominium and townhouse:
Type of homes:
Choosing any one of the two entirely depends on how an individual wants to live. If looking forward to more freedom, townhouses are the perfect choice as it gives you independence and a separate entry and exit. If you are looking for a small living space having a common entry then condo houses are the best. These houses have shared ownership outside on the overall property except the house unit of the owner.
Maintenance cover is a very vital element when looking for an establishment. In condo houses maintenance is restricted and house owners are not entitled to many liabilities like health coverage, roof, foundation, flood damages and many more. On the other hand townhouses cover a lot of liabilities as compared to condo houses. These liabilities are roof maintenance, frame, foundation, exterior walls, floors, fixtures, property and outbuildings. Owners of condo houses can also go for other maintenance covers which include a wide variety of protections.
Cost of a condo house is much less as compared to a townhouse. The reason being condo houses have small property areas only confined to the house unit whereas townhouses are bigger and spacious. A condo house cost is the sum total of the house unit only and has nothing to do with the exterior part of the house. Townhouses are priced much higher than condo houses as they have a huge property which includes both interior and exterior properties. The insurance policy cover is also expensive; almost double that of condo houses.
In both the establishments ownership completely belongs to the house owners. This ownership has limitations when it comes to condo houses as they give complete ownership for only the interior of the house. Outside property in condo houses are common property shared and maintained by all condo house owners. Ownership in townhouses is more reliable as they encompass the entire property both interior and exterior of the house.
Both the establishments have their own specialties and features that distinguish one from the other. After a detailed study we can ascertain that condo houses are best suitable for individuals and low income families. These house maintenance and living expenses are quite low compared to townhouses but have restricted properties. On the other hand townhouses are generally best for families with comparable income as living in these houses requires a considerable amount of insurance and other expenses. In the end it all depends on an individual considering the way they want to live.
The above mentioned points will help bring light to the differences and help people choose the right situation for themselves.