Four tips for condo insurance shopping in Florida
Owning or renting a condo in Florida involves two policies: your individual condo insurance policy and a master policy.
- Your individual policy can provide a wide-variety of coverage’s such as: personal property coverage, personal liability, additional living expenses, medical payments to others, rental to others coverage, etc.
- Master policies provide coverage for the building exteriors and common areas (tennis courts or swimming pool, gym, etc.) that you share with other condo owners in your building. The condo association collects monthly dues to pay for this insurance.
To make sure that you have adequate insurance coverage for your condo, we suggest discussing the following with your agent:
- What does the master policy cover?
When shopping for your condo insurance in Florida, it’s important to take the time to research what your association covers to avoid spending more than you need. Examine the master policy; understand your obligations, the bylaws, association rules and requirements. .
- How much coverage is needed?
Once you understand what you’ll need to cover, start coming up with a dollar amount for your belongings – do this BEFORE you purchase condo insurance. When trying to value your belongings, consider the wear and tear that causes a used item to depreciate or lose value over time. What it would cost to replace them today.
- What’s the difference between actual cash value (ACV) vs. replacement cost coverage?
People tend to underestimate the cost to replace all of their belongings.
- Actual Cash value coverage (ACV) reimburses you only for the present cash value of the item less depreciation.
- Replacement cost coverage reimburses you for what it would cost to replace the item with a new model.
For example: You purchased a flat screen TV 3 years ago for $1,000. A similar, new TV is still selling for $1,000 today – but after a few years, your TV is worth less than $1,000 (let’s say the TV is now worth $700.) If your insurance company reimbursed you for the ACV, you’d only receive $700 for your TV, rather than the $1,000 it would cost to replace it today.
- Should I consider loss- assessment insurance?
When you own a condo, you are a member of the condo association. Along with the other residents, therefore you collectively own the common areas.
Loss assessment coverage is a feature of condo insurance policies that provides additional coverage in the event that each condo owner is assessed a proportionate share to cover major property and liability losses.
For example: If a hurricane shatters all of the windows in the common areas, or the roof is damaged in a hailstorm – you may have to pay a portion of the repairs (only if the condo’s association’s policy doesn’t cover it.)
As always, work with a trusted agent with expertise who can help design a condo insurance policy that best suits your needs.
We’re located in South Florida and have been providing condo insurance throughout the state for the past 30 years.
If you’re interested in obtaining a condo insurance policy, or have questions about specific coverage’s, contact the Pettineo Insurance Agency at 954.493.9424 or visit our website, pettineoinsurance.com
Pettineo Insurance Agency Inc. provides condo insurance in Fort Lauderdale, Lauderdale-By-The-Sea, North Lauderdale, Pompano Beach, Oakland Park, Boca Raton, Deerfield Beach, Hollywood, Sunrise, Coral Springs, Pembroke Pines, Sunrise, Tamarac, Plantation, Lighthouse Point and all of Florida.
