Best Condo Insurance is designed to cover your possessions against theft, fires and 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 needs is the first step in finding the best condo policy. To compare the coverage offered by different insurers and to find the best deal, you should obtain quotes from several.
The best condo insurers are those that offer competitive rates, good customer service and useful benefits. State Farm, for instance, provides an online tool that estimates your insurance premium based off the coverage level and features you desire.
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.
Your personal property will be replaced if damaged or lost, but the amount covered depends on how much you own and your insurer's offer. Most standard policies only provide actual cash value, which means you'll receive the depreciated value of your personal property at the time of a claim. If you choose replacement costs, your policy will pay the full amount of value for all of your personal property.
The amount of dwelling coverage that you need will depend on your condo's value, the mortgage balance, and how much is already covered by your condo association master policy. The most commonly used method to determine the amount of coverage needed is the "20% rule", which states that your condo should only be replaced if it is completely destroyed.
The master policy that covers your condo association could also include coverage for building property. This means it will pay to repair or even replace the interior if there is damage caused by an event covered. This will include fixtures like built-in appliances and walls, but it won't cover the roof or exterior of your unit.
Consider adding an endorsement that will protect your valuables. You might, for example, have antiques or fine art that you need to protect.
Personal property coverage is available to most condominium owners. This covers clothing, furniture, and other items that are damaged or stolen. You can extend the coverage of your policy to include valuable items like jewelry and electronics.
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 insurance companies offer discounts if you install smoke detectors and deadbolt locks to your doors.