6 Things You Should Know When About Buying a Condo

Many people choose to buy condos over single-family homes for many reasons. Whether it's the convenience of a downtown location near shopping and cultural centers, the joys of homeownership without the headaches of yard work, or the affordability factor condos offer over traditional homes, condo ownership can provide many benefits.

However, there are certain things to keep in mind when buying a condo, and getting the right kind of protection is one of them. A local independent insurance agent can help you find the right condo insurance policy. Until then, here's a guide to what you need to know when buying a condo.

What Is a Condo?

Condominiums, or condos for short, are often used as primary residences, and for some people, they're used as second homes or investment properties. Buyers may purchase condos in attractive destination cities like New York City or Miami, but you can also find plenty of them in the suburbs. 

Regardless, condos come in many forms, like high-rise buildings, freestanding homes, townhomes, and other types of multifamily housing units.

What's the Difference Between a Condo and a House?

Condos are a way of achieving the benefits of home ownership while sharing some of the responsibilities with other owners. They're typically governed by a condo owners' association that dictates what the owners' responsibilities and restrictions are, as well as what the association's responsibilities are. 

When you purchase a condo, you'll usually pay a monthly fee (included in your mortgage payment) to the owners' association. These fees help the association carry out its duties, like caring for shared amenities such as common areas, pools, gyms, parking garages, and landscape maintenance. If you purchase a condo, you'll have your own space that you own, but you won't have to worry about things like mowing the lawn, maintaining the roof, or painting the siding. 

6 Things to Know About Buying a Condo

There are several things you should keep in mind when deciding if you should buy a condo. While buying a condo instead of a single-family house can offer many pros for some people, the cons can far outweigh the pros for others. Here's what you need to know when buying a condo.

1. Condos come with shared responsibility

One of the features of condo living that attracts people is the sharing of responsibility for repairs, maintenance, and even insurance. Most condominium communities have associations that are responsible for making repairs and upgrades to the building's exterior features, such as windows, siding, and roofs. 

Also, the condo association typically holds an association master insurance policy that covers certain liabilities that can happen outside the walls of your specific unit. The association master policy also covers certain property damage, such as damage to common areas, and some permanent fixtures inside individual units, depending on the policy. 

2. Condo insurance is usually cheaper than homeowners insurance

Since a condo complex's association master policy covers parts of the home's structure (specifics will vary), condo owners can usually find insurance at lower rates than homeowners of single-family dwellings of similar value. 

Of course, this all depends on what's covered by the association master policy and what the condo owner is required to cover with condo insurance. 

In general, the average cost of a homeowners insurance policy is $1,915 per year, while a condo insurance policy averages just $455 per year.

3. Condos often come with lower price tags

In densely populated, urban areas, condos are often an affordable alternative to single-family homes. It's not unusual to find a three-bedroom condominium listed for sale for thousands of dollars less than you would pay for a three-bedroom home. If you want to buy a home but can't afford a single-family house with a backyard, condo living may provide a more budget-friendly option.

4. Condos come with rules and regulations

Condo living also requires residents to adhere to the association's rules, which can sometimes be extensive. It's not uncommon for an association to require residents to turn down their music after 10 p.m. or register their guests with security personnel. Other condo associations may prohibit running a business in your unit.

5. Condos come with additional fees

While your monthly condo payments may be lower than a traditional home mortgage, keep in mind that most condo communities also charge association fees. This is a monthly expense that may help pay for anything from gate security to lawn or shared property maintenance. Be sure to factor in any additional expenses, such as association fees, into your monthly budget before deciding to buy a condo.

6. Condos come with less maintenance

Another huge advantage for many buyers when it comes to condos is that much of the maintenance is handled for you. The condo association handles not only necessary repairs to your unit but also things like shoveling snow and mowing the grass. If avoiding the hassles of certain types of home maintenance appeals to you, buying a condo might be the right choice.

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Why Work with an Independent Insurance Agent for the Best Condo Insurance? 

If you decide to buy a condo, you'll need to protect it with the right condo insurance policy. An independent insurance agent can be your greatest ally for this task. Your agent can help you select the right policy that fills the coverage gaps left by the condo association's master policy. 

They'll also shop and compare quotes from multiple local carriers for you to find the overall best blend of coverage and cost. And down the road, your independent insurance agent will be there to help file claims for you or update your coverage as necessary.