Condo Insurance – Important Facts Before You Buy

Before you purchase condo insurance, there are a number of important issues to consider. Condo insurance is not the same as a traditional home owners insurance policy. Instead of covering the outside of the house too, condo insurance only covers from the drywall in. Your association is responsible for the roof and other exterior damage.

Your first decision is what deductible to set. Your deductible is the amount you pay before the insurance kicks in. For instance, on a $15,000 claim, if you had a $5000 deductible, the insurance company would only give you $10,000 but if you had a $1000 deductible, they would give you $14,000. The deductible is a key factor in determining what your policy premiums are. The lower your deductible amount, the higher your monthly payments will be. If you can cover a good portion of any claim from savings, go with the higher deductible.

A higher deductible will also keep you from making claims on small items. This is a good thing because if you have too many claims – generally 2 or three a year – your insurance company will drop you.

Next up is actual cash value vs. replacement cost value. Let’s say you have a $900 television that gets stolen. Do you want the insurance company to pay you $900 so you buy a new television or do you want them to determine what the actual value is (much less due to depreciation) so that you can by a similar used one on Craigslist? If you can afford it, you will probably be more satisfied with replacement cost value as you can get new items that you will enjoy.

Do you rent out your condo? If so, you should require the renter to purchase renter”s insurance. Think of it this way, if you were to turn the condo upside down, anything that fell out is the renter’s responsibility and anything that stayed put is yours. Renters insurance also helps to protect you if the renter were to damage the property.

In sum, those are some of the things you need to know about condo insurance.

Condo Insurance is just one of the topics covered at http://HomeInsuranceProvider.net. You’ll find various resources related to protecting your home and condo there. You can get a unique content version of this article from the Uber Article Directory.