Here are some guidelines for you to think about:
- Most condo owners want enough coverage to replace their belongings with new merchandise.
- You may also want coverage for interior installations like walls and flooring — depending on what the condo association is responsible for.
- Consider getting an amount of liability coverage that matches your net worth.
Question My condo insurance policy is coming up for renewal, and I’m taking a closer look at my current coverage limits. How can I be sure I have the coverage I want?
Mona Verma, PhD, is a Farmers Insurance® agent in Folsom, California. Here’s what she has to say about choosing coverage limits.
Answer Think of condo insurance policy as a package of different types of coverage. As the owner, you select the amount of coverage for each type.
First, determine the value of your personal property like furnishings, electronics, clothing and everyday household items. Think of what it will cost to replace all these things with new merchandise at today’s retail prices. You might need to take a physical inventory to figure this out.
You may want additional coverage for “attached” items like interiors walls, fixtures, flooring and appliances. It depends on whether your building’s master insurance policy covers these things. If not, they can be covered by your own policy. This is something I discuss with all Farmers® condo customers as they decide on a policy.
You should consider obtaining liability coverage based on your net worth — or the grand total of all your assets. This amount is what you could potentially lose in a lawsuit if you’re found responsible for injury to someone else. I fill out an “asset protection sheet” with customers, so we have a clear picture of how much they have at risk. You can get up to $500,000 in liability coverage with a Farmers condo policy. Many customers I’ve worked with opt for a personal liability umbrella policy as well, which gives them $1 million to $10 million in additional coverage.
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