Proper condo insurance coverage is important, but the premiums can be minimized with the right efforts.
When you have purchased a new home, condo insurance can help to make sure that your investment is effectively protected against unforeseen circumstances, but this doesn’t mean that you need to pay the highest premiums.
There are many quick and easy things that you can do to minimize your payments while still receiving the appropriate amount of coverage.
Start by taking out two different condo insurance policies.
The first will be your own insurance policy and the second is a form of “master policy”. The former is a type of coverage for all of the contents of your home. This includes your personal possessions as well as any improvements that you make to the structure of the unit. Should there ever be a broken pipe, a fire, theft, or another type of disaster that is covered by the policy, then the damaged or missing items will be protected (minus the deductible). You will also have liability protection through this policy.
A master condo insurance policy is different from the individual coverage. This is because it is provided by the co-op or condo board. It is what provides coverage for the common use areas such as the roof, elevator, basement, boiler, walkways, swimming pool. Its coverage includes both physical damage and liability.
As the master policy is essentially set and there is little that you can do to change it, there is a lot that you can do to save on your individual policy. Use the following tips to help to keep your premiums at their lowest:
• Understand your coverage. Read the fine print and if you don’t understand it, speak with an agent who can explain it to you. This way, you won’t simply be making assumptions about your coverage. You will actually know what protection you have.
• Choose the right deductible. The higher the deductible, the lower your premiums. Remember, though, that you need to be able to live with the deductible if you ever need to make a claim. Many people choose a high deductible and set aside that amount in a savings account in case they ever need it. Then they can enjoy lower monthly payments.
• Ask for discounts. Many may be possible, including if you have smoke detectors, security alarms, deadbolt locks, a security guard, and other features. Ask to find out where you may qualify.
• Include expensive items in your condo insurance. If you have expensive jewelry, collectibles, or furs, you may consider adding additional coverage to your policy to make sure that they are covered in case of damage or theft.