How to Compare Condo Insurance Around the Country

Condo insurance, like all homeowners insurance, is mandated by every state insurance board. This means you must carry the coverage if you own your condominium. While condo and home insurance are similar in a number of ways, there are a few factors that make condo insurance unique. Depending on where your condo is located and what you use it for, your condo insurance policy may be very pricey.

Secondary Residence Insurance

If you have a condo in a vacation destination, it is likely you are using the residence as a second home. Condos are popular options for second homes because they require less maintenance. However, maintaining a condo some distance from your primary residence may cost you more in insurance premiums. It is common for condominium owners to return to their secondary residence to discover a flood, broken appliances, property damage and other problems that have occurred while they are away. One way to reduce these costs is to hire a management company. The cost of maintaining a condo in a vacation spot from another location may be recouped in your insurance savings.

The Affect of Renters

Another factor to consider when your condo is in a vacation destination is whether you will rent out the facility when you are not there. Condos along the coast are popular rental destinations for families, and you may see your second home as an income property in addition to a place for you to stay. If this is the case, then you need specific insurance lines to cover damage incurred on your home. Renters are more likely to damage your property because they do not have an attachment to it. When they leave, renters often leave behind a trail of problems that can go unnoticed until it is too late. Your insurance company will be familiar with this issue, and you will see a large spike in premiums when you decide to rent your home.

Natural Disaster Coverage

Homes located in certain flood, fire, windstorm or earthquake zones will have to carry higher insurance coverage for these natural disasters. If your condominium is in many coastal areas of Florida, for example, you will have to elect specific coverage for flood and hurricane damage. The same is true for earthquake coverage in California. These additional lines are mandated by FEMA for those people owning property in designated high risk areas. Avoid the highest risk locations where possible.

Safety and Anti-Theft Concerns

The safety of the community where you plan on purchasing your condo will be a primary factor in the expense of your theft coverage. Condos located in gated communities with surveillance protection will cost less to insure than those without these guards. However, condos in vacation communities may see a hike in insurance costs when the communities are vacant or have a high amount of foot traffic from unknown persons. If your insurance premiums are costly due to the location of your condo, you may consider installing anti-theft devices on your unit to reduce the cost.

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