Best Condo Insurance - This policy protects your belongings against fire, theft and other disasters. This policy covers you for liability, and will cover your hotel costs if damage forces you to move. It can even pay for debris removal if your unit has been damaged by a covered peril.
Understanding your needs is the first step in finding the best condo 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, for instance, provides an online tool that estimates your insurance premium based off the coverage level and features you desire.
The main type of coverage for most condominium owners is dwelling, which covers the inside of your condo from certain types of damage. If your condo is damaged by a covered incident, such as flooding or fire, it will be repaired or replaced.
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. 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.
It's possible that your condo association's policy includes building property coverage. This would cover the repair or replacement of the interior of your condominium if damaged by a covered accident. This coverage includes fixtures such as walls and built-ins, but excludes the roof and exterior of your unit.
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. Consider protecting antiques, fine art, or other valuable possessions.
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. You can extend the coverage of your policy to include valuable items like jewelry and electronics.
You should always shop around before buying a policy to see if you can save by bundling your coverage, raising your deductible or taking other actions to lower your insurance premiums. Some insurers offer discounts for installing smoke detectors or deadbolt locks on your doors.