Seven Common Mistakes to Avoid When Purchasing Condo Insurance
The decision to invest in a condominium makes perfect sense for lots of people since it allows them the best of both worlds. You have the choice to switch the interiors of the home as you see fit while gaining equity while still spending less than an apartment. Here are several mistakes to avoid when getting insurance for your new condo.
- Failure to Explore All Your Coverage Options
Many condo owners remain vulnerable in the event of a disaster, especially when they choose to add cash value reimbursement to their policy rather than replacement cost coverage. Cash value coverage offers to pay for the original cost of an item minus depreciation, in which case your loss may not be fully covered. On the other hand, if you have replacement cost coverage, you will be reimbursed with the exact amount you spent on an item when you file a claim. This, however, comes with slightly higher premiums.
- Disregarding the Cost of Your Deductible
Should you choose a lower premium, your deductible could well be increased, which may harm your finances in the future. Consulting your insurance provider about your financial condition may help them determine which forms of coverage you can afford while still being able to manage a claim.
- Avoiding Reading Some Segments of the Policy Document
While it may be a hassle to read, it is critical you read the fine print in your policy and comprehend the entire agreement. Read the policy in its entirety and ask questions about anything you do not understand.
- Failure to Understand the Policy’s Terms
Condo insurance only protects against potential property damage and liability claims. One of the most common mistakes when buying condo insurance is assuming that the master condo association policy will cover your entire condo. Carefully study your condo association’s master policy to discover if any additional coverage is necessary.
- Lack of Coverage
Often, condo owners fail to appropriately assess the valuation of their assets or do not obtain coverage for incidents that are most likely to occur in the neighborhood. Many condo insurance policies exclude damage from natural disasters such as earthquakes or floods. If you are a victim of theft, some of your property may not be protected. Working with the right insurance professional is crucial for you to obtain additional coverage like flood insurance or a personal articles policy.
- Expecting Your Tenants to Bear Coverage
While your tenants may have renters’ insurance, it is unlikely that they have the coverage you require, and condo insurance is still suggested to cover the entire unit. Condo insurance bridges the gap between your primary coverage and the renters’ policy.
- Considering an Insurance Provider Only on the Basis of Lower Insurance Costs
If you’re unsure about the many coverages, you’ll need, choose an insurer with a track record for transparency and integrity. Many companies claim affordable rates while failing to provide adequate protection. This inaccuracy is to blame for the vast majority of problems that consumers encounter while filing a claim.
Contact our team at Remland Insurance Services, Inc. today to obtain the right Condo insurance to safeguard your valued investment. We will create a personalized insurance plan with you.