What Are The Different Home Insurance Coverages for Different Homes?

One of the things that people have to decide when they're buying a home is if they want a single-family home, which is a freestanding home usually with a yard -  anywhere from a small yard to a massive yard to acre -  or do they want to live in a townhome or condo-type situation where they're right next to and connected to the people living next to them.

People are never quite sure about what is the difference in the coverage and the cost when you're looking at buying a single-family home versus perhaps a townhome or a condo? This question is being asked more and more in Middle Tennessee with so many more condos rising in the area. 

Difference Between Single-Family and Townhome or Condo Insurance Coverages

Single Family Insurance Coverage

When you buy a single-family home in a neighborhood, for example, the owner (the occupant) is going to be responsible for the entire structure. They're going to be responsible for everything that constitutes that home.

When you have a single-family home that you own in a neighborhood, you're responsible for everything that happens on that property. With a single-family home, you're responsible for rebuilding everything from the ground back up again. In a townhome or a condo, you're responsible for what happens on the inside. The HOA or whoever has the master policy will be the one to take care of any damage or rebuilding of the outside (the roof, the frame, the exterior elements) and then you're going to rebuild from the studs in usually. 

Townhome or Condo Insurance Coverage

When you're looking at a townhouse or you're looking at a condominium, the owner-occupant is not responsible for the whole building. They're only responsible for their unit. The unit consists of everything from the studs. Anything that's really at the heart of the structure of the building is the responsibility of the building owner or the association.

When you have a condo, you will usually only worry about the dwelling coverage.

Typically for townhomes and condos, what they will do is when they're rebuilding that structure, they will run electricity and wiring to the wall. It's the owner's responsibility to run that electricity and water to the faucets or the outlets or the water machine. The association handles all the grounds around the building and the outside of the building.