5 Questions To Help You Shop For Condo Insurance

November 06, 2020 by Dan Green

Every HO-6 condo insurance policy is unique. The amount of coverage that’s right for you won’t be the same as what’s right for your neighbor; or, for a person who owns a condo across town.

And, it makes sense to shop around. The cheapest condo insurance will depend on how you want to be covered.

Save money when you shop for HO-6 condo insurance. Know what you need, and what you don’t. Know what’s covered by your building’s master condo policy and make good choices.

Here are five questions to help you get the cheapest condo insurance available.

1. If something went wrong in your condo, how much could you pay for the damage?

When something goes wrong in your condo, the costs can add up. Fixing your floors, repainting the walls, and replacing heirloom jewelry can be expensive, as examples.

When you make a claim for these damages, though, your insurer won’t send you all of the money you’ve requested. It will send all of the money minus some amount of cash.

This cash that’s withheld is known as a Deductible.

The most common deductible sizes on a condo insurance policy are $250, $500, and $1,000. Your deductible is the amount that the insurer will deduct from your claim before sending it to you as cash.

If you are comfortable paying $1,000 for damaged floors that need repair, choose a high-deductible. It lowers your condo insurance rate, and can save you money.

Otherwise, opt for a smaller deductible. You’ll pay a higher rate, but you’ll get more cash in the event of catastrophe.

2. Do you have a lot of electronics to insure?

Electronics lose value pretty quickly, and insurance companies know that. So, if you’re insuring a lot of computers, televisions, and other devices, you can save money by insuring your items for their actual cash value.

This means that, over time, the cost to replace your goods will drop, which can help to lower the costs of a policy.

The opposite of an Actual Cash Value policy is what’s known as replacement coverage. Replacement coverage pays out the full price to replace the item with a similar, new item.

Replacement Coverage is more expensive as compared to actual cash value.

3. Do you own expensive things?

HO-6 condo insurance policies protect your personal items from damage or theft. Some condo homeowners, though, may find the built-in coverage to be too low.

For example, if you have a high-value jewelry collection, or a large collection of sports memorabilia, the standard coverage provided by your condo insurance may not be enough to actually replace your items of value.

If you own high-value items and keep them in your condo, have your insurance company raise your personal property coverage to a suitable amount.

This will raise your insurance premium slightly. The additional coverage, though, is necessary and important.

4. Do you drive a car?

Insurance companies give discounts to customers with two or more active insurance policies. If you drive a car, then, use your auto insurance policy to get you a discount on your HO-6.

This is known as Bundling.

The cheapest car insurance companies don’t always offer competitive condo insurance so be sure to shop for the lowest cost insurance you can find. Compare at least three quotes and offers.

Bundling insurance can save you 25% on your costs.

Click to check bundled insurance rates.

5. Is this condominium in a flood zone?

Flooding is the most expensive and most common natural disaster in the United States, and it’s damage that’s not covered by an HO-6 condo insurance policy.

If your condo is in a flood zone, you’ll need special flood insurance — even if your condo is “off the ground”. Flood insurance protects your unit from damage to the building and its structure.

And, if you’re not in a flood zone, you may want flood insurance regardless — – more than 20% of U.S. flood damage happens in low-to-moderate flood risk areas.

Are you a first time home buyer?

Let us know if you’ve done this before - whether you’re a seasoned pro or buying for the first time. We’ll share the perfect information with you as you need it.

More than 25,000 home buyers have customized their content

Sign up to customize yours

Already have an account? Log In