Best Condo Insurance This policy is intended to protect you from disasters such as fires, thefts, and floods. This insurance also offers liability protection, as well as covering your hotel bills should you be forced to relocate due to a covered peril. The policy can pay for the removal of debris if you have been damaged in a covered event.
The first step to finding the best condo insurance is to understand your needs. Compare quotes to compare prices and coverages from multiple insurance providers.
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.
In most cases, condominiums are covered by dwelling insurance. This covers certain types and amounts of damage to the condo. 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. You can also select replacement cost which pays you the value of your items after a covered event.
What amount of coverage you require depends on the value and mortgage balance of your condo as well as how much your condo associations master policy covers. 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.
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. The coverage will cover walls, built-ins and appliances but not your roof or the exterior.
If you have valuable possessions, such as art or antiques, that may be damaged or stolen and need additional protection, add an endorsement to your condo insurance policy. For example, you might have fine art or antiques that need to be protected.
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.
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 insurance companies will give you discounts for installing deadbolt locks or smoke detectors.