How to Value Condominium Insurance

You must know certain values about your property to get a proper condominium insurance quote.
You must know certain values about your property to get a proper condominium insurance quote. (Image: Condominium at Night image by Nont from

It can be difficult for you to properly calculate how much insurance you need for your condominium. Traditional homeowner's insurance is calculated by the cost to rebuild the structure, which insurance companies can reasonably determine when preparing quotes. Condominium insurance, however, is calculated primarily by the cost to replace the contents within the home. You must provide this information to your insurance agent, and therefore you must do some preparatory work before calling for a quote. In addition, new insurance requirements for lenders using Fannie Mae mean you must also know the approximate appraised value of your unit.

Calculate the approximate value of your contents. Eileen Sutz, an Allstate insurance agent, states that "if [you] were to turn [your] condo upside down, everything that falls out is a content," according to MSN Money.

Review your homeowners' association master insurance policy to see how much of your unit's structure is your responsibility to insure. Typically, you must insure at least some of the interior structure such as cabinets and fixtures.

Calculate the approximate replacement cost of the structures for which you are responsible. You can obtain replacement cost quotes from any interior remodel contracting company, or a local hardware store with a contracting team. Your homeowners' association may supply you figures to use as well.

Provide these figures, along with any other requested information, to your insurance agent. He will return to you a quote for the cost of insurance on your home.

Tips & Warnings

  • Typical condominium insurance policies also offer several other optional coverages that could greatly benefit you. Speak with your agent about what other insurance needs your home may face.
  • If you carry a mortgage on your condominium, you may face certain insurance requirements imposed by Fannie Mae. In 2009, Fannie Mae required certain condos to be insured with real property coverage of at least 20 percent of the unit's assessed value in order to qualify for a loan.

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