How to Buy Condo Insurance

Do you need to buy condo insurance to cover your condo? Buying condo insurance is much different from buying home insurance. Since the condo association fee already covers some things, you won’t need to cover those things again when you buy condo insurance. This article will give you some insight into buying condo insurance.

Difficulty: Easy

Instructions

1. Before you buy condo insurance, you need to review your condo association contract to see what that covers. Usually, your condo association fees will cover the roof of the complex, the outside of the building, and other shared areas.

2. Once you’ve figured out what your condo association covers, you’ll need figure out the amount of individual condo insurance coverage you’ll need. A good rule of thumb is to cover half the market value of your interior structure.

3. Decide on whether you want cash value or replacement condo insurance. In a cash value, you will be given money for the depreciated value of the items you’ve covered. If you choose replacement condo insurance, you will be given money for the full value of the items. The replacement condo insurance will cost a good deal amount more than the cash value coverage.

Tips & Warnings

• Read carefully what each condo insurance covers before buying.