How Do I Know How Much Coverage I Need in My Condo Policy?
This is not a one-size-fits-all question. The answer hinges on what it would cost you to replace your belongings or restore your unit in the event of a burglary, a fire, or some other calamity. You should create an inventory of what you have and identify the value of your furniture, electronics, clothing, and other personal items. (Use photos or video to make the task easier.) Then compare the level of coverage in the policy you are considering with how much it would cost you to replace the items.
In some instances, you may need to purchase additional coverage for jewelry or other high-value items if they exceed the coverage limits (maximum that can be reimbursed) in the policy. To find appropriate coverage at a competitive price, ask your Trusted Choice agent to assist you.
When Should I Supplement My Condo Insurance Policy with Other Coverage?
You may want to supplement your condo policy under certain circumstances. For instance, if your valuables would appraise for more than the limits (maximum that can be reimbursed) stated in your condo policy, you should consider beefing up your coverage with a personal property rider. It is a good practice to keep an inventory of your high-value items and get them appraised. Work with your Trusted Choice agent to purchase the policy rider or endorsement that you need to make you financially whole in the event your items are lost, stolen or damaged.
You also may want an umbrella liability policy (a supplement to your condo policy) to protect you against personal claims. For example, if someone is injured in your condo; if a grease fire in the kitchen goes out of control, damaging your neighbor’s unit; or if your child throws a ball and breaks a neighbor’s window, a liability policy can come to your aid. Costly claims can arise from unanticipated situations, and adequate liability coverage can save an individual or family from financial ruin.
Your local Trusted Choice agent is a trained professional on whom you can rely for a complete evaluation of your insurance picture.
How Much Does Condo Insurance Cost?
The cost of condo insurance varies. Geography, weather, the size of the unit insured, and the amount of coverage (including the size of the deductible, which is the amount you agree to pay upfront) are among the variables that can affect the insurance rate. Produced in 2019, the National Association of Insurance Commissioners Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2017 lists the average annual rate of condo insurance in the United States as $488 per year. Wisconsin had the lowest average annual rate ($249), and Florida had the highest ($942).
Can Condo Policy Owners Deduct the Insurance Cost from Their Taxes?
Condo insurance is normally not tax-deductible. However, if the property is used as a rental to generate income, the owner may be able to treat the insurance as a business expense. Similarly, if the condo owner operates a home-based business, they may be able to deduct a percentage of the insurance cost, depending on what square footage of their living space is solely dedicated to their work. The owner should adhere to government requirements in making such calculations and may find a tax adviser’s guidance helpful.
How Do I Purchase Condo Insurance?
We recommend purchasing condo insurance through an independent insurance agent in your community. Your local Trusted Choice Independent Insurance Agent is a trained professional who understands your neighborhood (for example, are you in a flood zone?) and can provide you with a comparison of rates based on your insurance needs.
Your Trusted Choice agent also can advise you on various coverage options and tell you about insurance discounts for which you may be eligible. For instance, insurers often give lower rates to customers who purchase multiple policies from them, such as a combination of condo, umbrella, and car insurance policies.
To feel confident that you are adequately protected and are not overpaying, let your Trusted Choice agent help you. It couldn’t be easier. Just click “Find an Agent” at TrustedChoice.com.