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| Condo Insurance - 20% Of Purchase Price? Posted by TimeAndTide  on 5/1 at 10:33 amHello Everyone, Friend of mine just had an offer accepted on a condo, so he's now shopping around for insurance. One insurance person advised him that condos generally only need coverage around 20% of the purchase price, because with condos, the coverage only applies "where the sheet rock begins". Is this pretty much standard procedure? Or something different entirely? Thanks in advance! Reply • Back to Top |
| his association fees should cover the outside of the building i think they just call it a condo policy Reply • Back to Top |
| He would need to get a copy of the condo policy, normally they cover upgrades and changes from the original build, other policies cover the drywall texture in. This would include paint, wallpaper, cabinets, light fixtures, flooring etc. He really needs a copy of the complexes policy to know how much insurance he needs. Reply • Back to Top |
| I wouldn't say it is a standard percentage, because all condos have seperate insurance policies/coverage. As said above, you would need to see a copy of the buildings policy. But it will be less than home insurance obviously because your exterior insurance is covered by HOA fees. Reply • Back to Top |
| Our condo insurance covers both the outside AND insides including anything attached (cabinets, etc.) and upgrades (wood floors, granite) and appliances. The association officers were clueless and just always told people outsides were covered. You should talk to the agent. The catch is that there is a $5000 deductible for the association coverage, so I still maintain a good amount of coverage on the dwelling at a $500 deductible (probably close to 35%) because it is cheap and so I'm not so beholden to decisions made by clueless HOA officers. I also have contents, loss assessment, a good amount of liability (just in case my negligence causes damage to all units somehow), and jewelry rider. Reply • Back to Top |
| Also, sometimes the association pays the primary ins coverage from our dues but initially we paid the premium via assessment in dec. each year in addition to our dues. And the condo hurricane deductible is 1% of the value of each building, not each unit, so that might be a hefty assessment. Thankfully our HOA has a good amount of bank for times like that. Our dues are more than double than identical complex across the street but we are in much better shape to handle damage and repairs without major assessments. Would not buy condo if I had a do-over. Go garden home. Reply • Back to Top |
quote: I have a watch, how much should I insure it for? Reply • Back to Top |
quote: Think surfing, not timekeeping. Reply • Back to Top |
quote: Hopefully this varies for each condo association - that sounds freaking complicated! Reply • Back to Top • Refresh |
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