Best Condo Insurance: This policy is designed to protect your belongings from theft, fire and other disasters. The policy also covers liability and your hotel expenses if you are forced to move because of damage. It will pay to remove debris from the area if your unit was damaged by one of the covered perils.
Understand your needs before you start looking for condo insurance. Get quotes from different insurance companies to compare their coverage and prices.
In general, the best insurance companies for condos offer great rates, excellent customer service, and many useful features. State Farm offers an online tool to estimate your premiums based on coverage levels and features.
Recommended Condo Insurance Coverage
The main type of coverage for most condominium owners is dwelling, which covers the inside of your condo from certain types of damage. It will pay to repair or replace your condo if it's destroyed by a covered event, including flooding and fire.
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. Standard policies usually only cover the depreciated worth of your property when you make a claim. You can choose replacement cost to receive the full value of all your possessions in case of a covered loss.
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.
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. This coverage includes fixtures such as walls and built-ins, but excludes the roof and exterior of your unit.
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, if you own fine art or antiques and need to protect them.
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. 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.
It is always a good idea to shop around to compare insurance rates before purchasing a policy. This will allow you to save by bundling policies, increasing the deductible and taking other steps. Some insurers will offer discounts when you install smoke alarms or deadbolts on your door.