Types of Condo & Co-op Insurance Coverage
Dwelling coverage pays for repairs or rebuilding of your condominium in case of a covered event, such as a fire or explosion. To determine how much coverage you need for your condo, it’s worth researching to get an idea of local construction costs. You may also want to check with your mortgage provider to see if there are any requirements for dwelling coverage. For example, if you own a million-dollar condo and your lender requires 25% of the property value, you’d need at least $250,000 in dwelling insurance. It may seem like a lot to consider, but it’s always better to be prepared and have the right coverage.
Personal Property Protection
Think of everything you own inside your condo: clothes, furniture, appliances, and electronics. Now take the time to calculate the worth of each item. Many people only realize how much their personal property is worth once it’s too late. Taking an inventory of everything you own can help you understand the value of your possessions and help you decide if you want to increase your limits to protect your priciest possessions, like art, jewelry, and collectibles. You’ll have to choose between actual cash value (ouch!) and replacement cost value when choosing your personal property insurance coverage.
Nobody wants to imagine being sued by someone they thought was a friend or acquaintance, but accidents happen. That’s why liability insurance is such an important safeguard to condo owners and co-ops. It can protect you financially if someone gets hurt on your property or your pet gets too aggressive. While $100,000 may be enough coverage for some, considering your assets and the potential for costly legal fees is always a good idea. By taking stock of what you have and ensuring adequate liability coverage, you can breathe easier knowing you’re protected no matter what comes your way.