Determining the appropriate condo policy can be confusing. Unlike homeowners, condo owners are not entirely responsible for insurance coverage. Instead, your condo is insured on two levels. First, the condo association provides a policy that covers common areas. Secondly, owners are responsible for covering their unit. With this complex coverage, you probably have some questions on wholesale condo insurance policies.
What Do You Need To Cover?
You don’t own the entire building. However, you are responsible for covering the structural components of your individual unit along with your personal property. Structural elements include things like flooring, cabinets, carpeting, lighting and some walls. Contents or personal property include items like furniture, jewelry, electronics, clothing and artwork. Additionally, when looking at the association policy understand what type of pipe ruptures and flooding are covered, as you may be responsible for some of these repairs.
How Much Coverage Do You Need?
Determining the coverage for the contents of your home should be fairly straightforward. However, determining the structural costs for wholesale condo insurance policies is more difficult. Look at upgrade costs for potential structure pricing. Additionally, you must decide between cash value and replacement cost. Cash value only replaces the cost of the item minus depreciation while replacement costs provides the cost for current equivalent items. You can work through the options with a knowledgeable insurer to determine what makes sense for you.