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 will even cover the cost of removing debris from your property if it has been damaged due to a covered peril.
Understanding your requirements is the first step to finding a good condo insurance policy. It is important to get multiple quotes in order to compare coverage options and price.
Most of the top condo insurance companies provide excellent rates, outstanding customer service, as well useful features. State Farm offers an online tool to estimate your premiums based on coverage levels and features.
Recommended condo insurance coverage:
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.
You can also get coverage to replace personal property that is damaged or stolen. However, the amount depends on your possessions and what insurance your insurer provides. Most standard policies will only pay actual cash values, meaning you'll get the depreciated cost of your belongings when a claim is made. You can also select replacement cost which pays you the value of your items after a covered event.
How much coverage you will need depends on how much the condo association's policy covers, as well as your mortgage balance. 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.
The master policy of your condo association may also cover building property, which would repair or replace any damage to the condo's interior caused by an insured event. The coverage will cover walls, built-ins and appliances but not your roof or the exterior.
Consider adding an endorsement to the condo policy to provide extra protection if you have valuable possessions which could be damaged or taken. If you have valuable antiques or art, it is important to insure them.
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.
Before buying an insurance policy, you should shop around and see if there are any ways to save. Bundling your policies or raising your deductible can help. Some insurers offer discounts for installing smoke detectors or deadbolt locks on your doors.