Edgar Sheppard: Hello, my name is Edgar Sheppard and I’m an insurance agent with the Zabbia Insurance Agency in Massapequa, New York. And one of the common questions I get is, how much insurance should I have on my condo? And the answer to that isn’t quite that simple. But the best place to start would be to obtain a copy of your association’s bylaws, and a copy of the associations master policy. By doing so, you’ll understand what the association or complex is responsible for in the event of a claim or loss, and what you as the unit owner are responsible for in rebuilding the interior, if there was a claim or loss. In most cases, that’s going to be from the drywall in. But that can vary wildly from complex to complex, and why I strongly recommend understanding what your actual homeowners association covers, in event the of a loss. Next, if you have a loan on the property, most banks or mortgage companies in this day and age are going to require the home’s interior is insured for at least 20% of the loan value. Now, that may or may not be enough based on several factors, with the cost of labor and materials and the quality of the building materials itself.
For instance, the flooring in your house, is that vinyl flooring and basic carpet? Or is it exotic hardwood floors, and upgraded tile? The bathrooms and the kitchen, have they ever been renovated or upgraded with high end cabinets, new granite countertops? Or are they more common like what you would find in a high rise apartment complex? All those factors will make a difference in how much insurance coverage you should have. Additionally, you want to make sure that all of the stuff you moved in is covered from your furniture, jewelry, clothing, electronics, and appliances. And then finally, in the event you’re ever displaced from the home due to a claim, that you have enough coverage to pay for a comparable rental, for up to two years in the event you’re not able to live in your home while it is being repaired. Now that you know the truth, are you in good hands?