Best Condo Insurance: This policy is designed to protect your belongings from theft, fire and 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 will even cover the cost of removing debris from your property if it has been damaged due to a covered peril.
To find the best condo insurance, you must first understand your needs. To compare the coverage offered by different insurers and to find the best deal, you should obtain quotes from several.
Generally, the best condo insurance companies offer excellent rates, great customer service and useful features. Some, like State Farm, offer an online quote tool that instantly estimates your premium based on the coverage levels and features you want.
Insurance coverage for condos:
The main type of coverage for most condominium owners is dwelling, which covers the inside of your condo from certain types of damage. It pays to replace or repair your condo after it's been destroyed by a covered disaster, like a flood or fire.
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. Standard policies usually only cover the depreciated worth of your property when you make 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 common way of calculating the amount of dwelling coverage that you need is to use the 20% rule. If your condo is destroyed, then it will only cost 20% its total value.
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. If you have valuable antiques or art, it is important to insure them.
Second, personal property insurance is offered to condo owners. This type of insurance pays for the replacement or repair of damaged or missing clothing, furniture, or other valuable items. There is a maximum amount most policies will cover for a particular item. But you can purchase riders to allow them to pay more, such as for jewelry or electronics.
Shop around before you buy a policy. You can often save by bundling insurance coverage, increasing your deductible or other measures to reduce premiums. Some insurers give discounts if you have smoke detectors installed or a deadbolt lock on your front door.