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TimeAndTide 
LSU Fan
The Promised Land
Member since Jun 2009
756 posts
| Condo Insurance - 20% Of Purchase Price? (Posted on 5/1/12 at 10:33 am)
Hello 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!
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yellowfin 
Illinois Fan
Paige is Pretty
Member since May 2006
51865 posts
| re: Condo Insurance - 20% Of Purchase Price? (Posted on 5/1/12 at 10:39 am to TimeAndTide)
his association fees should cover the outside of the building
i think they just call it a condo policy
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wickowick
LSU Fan
Head of Island
Member since Dec 2006
12858 posts
| re: Condo Insurance - 20% Of Purchase Price? (Posted on 5/1/12 at 11:56 am to TimeAndTide)
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.
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OceanMan
LSU Fan
Member since Mar 2010
1897 posts
| re: Condo Insurance - 20% Of Purchase Price? (Posted on 5/1/12 at 9:37 pm to TimeAndTide)
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.
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Breadcrumbs
LSU Fan
Baton Rouge
Member since May 2005
2793 posts
| re: Condo Insurance - 20% Of Purchase Price? (Posted on 5/2/12 at 7:42 am to TimeAndTide)
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.
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Breadcrumbs
LSU Fan
Baton Rouge
Member since May 2005
2793 posts
| re: Condo Insurance - 20% Of Purchase Price? (Posted on 5/2/12 at 7:54 am to Breadcrumbs)
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.
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Chad504boy 
New Orleans Saints Fan
Five Oh Four
Member since Feb 2005
64901 posts
| re: Condo Insurance - 20% Of Purchase Price? (Posted on 5/2/12 at 9:28 am to TimeAndTide)
quote:
TimeAndTide
I have a watch, how much should I insure it for?
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TimeAndTide
LSU Fan
The Promised Land
Member since Jun 2009
756 posts
| re: Condo Insurance - 20% Of Purchase Price? (Posted on 5/2/12 at 12:04 pm to Chad504boy)
quote:
I have a watch, how much should I insure it for?
Think surfing, not timekeeping.
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TimeAndTide
LSU Fan
The Promised Land
Member since Jun 2009
756 posts
| re: Condo Insurance - 20% Of Purchase Price? (Posted on 5/2/12 at 12:06 pm to Breadcrumbs)
quote:
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.
Hopefully this varies for each condo association - that sounds freaking complicated!
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