Best Condo Insurance: The policy will protect your belongings in the event of theft, fire or other disasters. It provides liability coverage and pays for your hotel bills in the event that you need to stay somewhere else due to damage. 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. Compare quotes to compare prices and coverages from multiple insurance providers.
The best condo insurance providers offer great rates and customer service as well as useful features. State Farm for example, offers an online quote tool which estimates your premium instantly based on the level of coverage and features that you select.
Recommendations for Condo Insurance:
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.
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 will only pay actual cash values, meaning you'll get the depreciated cost of your belongings when a claim is made. 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 20% rule is the most common way to calculate how much coverage you need. It states that, if your condo was destroyed completely, it would only cost 20% of its total value.
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.
If you have valuable possessions that could be damaged or stolen, consider adding an endorsement to your condo policy that would provide additional protection. For example, you might have fine art or antiques that need to be protected.
Personal property is the second coverage option for condominium owners. It pays to replace or repair clothing, furniture or other items damaged or taken. 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 insurers will offer discounts when you install smoke alarms or deadbolts on your door.