Best Condo Insurance: The policy will protect your belongings in the event of theft, fire or other disasters. This insurance also offers liability protection, as well as covering your hotel bills should you be forced to relocate due to a covered peril. It can even pay for debris removal if your unit has been damaged by a covered peril.
Understand your needs before you start looking for condo insurance. You should get quotes from multiple insurers to compare coverage offerings and find the best price.
The best condo insurance providers offer great rates and customer service as well as useful features. State Farm, for instance, provides an online tool that estimates your insurance premium based off the coverage level and features you desire.
Condo insurance:
Most condominium owners have dwelling coverage, which protects the interior of their condo against certain types of damages. The insurance will cover the cost of replacing or repairing your condo in case it is destroyed by an insured event such as a fire or flood.
It will also pay to replace your personal property if it's damaged or stolen, though the amount of coverage depends on what you own and what your insurer offers. The standard policy will only pay the actual cash value. This means that you will receive the depreciated amount of your personal belongings at the time of the claim. You can also choose replacement cost, which will pay you the full value of your belongings after a covered loss.
How much dwelling insurance you need depends on your condo value, mortgage balance and the amount covered by your condo corporation's master policy. The most popular way to determine how much dwelling insurance you need is by using the 20% rule. This states that in case your condo is completely destroyed, only 20% of its value should be required to replace it.
Your condo association's master policy might also include building property coverage, which will kick in to repair or replace the interior of your condo if it's damaged by a covered event. It will cover fixtures such as built-in appliances, walls and ceilings but not the exterior or roof of your condo.
Add an endorsement on your condo policy if you own valuable items that are susceptible to being damaged or stolen. This will provide additional protection. You might, for example, have antiques or fine art that you need to protect.
The second type of coverage for most condominium owners is personal property, which pays to repair or replace their clothing, furniture and other items if they're damaged or stolen. Many policies limit the amount of coverage for a single item. However, you can add riders that extend this limit.
It is always a good idea to shop around to compare insurance rates before purchasing a policy. This will allow you to save by bundling policies, increasing the deductible and taking other steps. Some insurers will offer discounts when you install smoke alarms or deadbolts on your door.