Determine exactly what must be insured
Determine from the association documents — usually the declaration — exactly what part of the structural interior of your unit you are required to insure. It’s most common for the owner to have to insure everything beyond the bare walls and bare floor. If the documents aren’t clear, assume you are responsible for everything structural inside your unit. (That would include carpeting, hardwood flooring, any floor and wall tile, bathroom fixtures, kitchen cabinets, countertops, built-in appliances, lighting fixtures, etc.)
Make a list of the structural items you must insure, and then estimate the labor and materials cost to replace each. Total up the values, and add a 20 percent cushion. That adjusted total is the amount of structural coverage to buy, often $100,000 or more.
Think outside the box
Broaden the kinds of loss that would be covered on both the building and contents from “perils” to “special perils,” so that the policy covers all losses (including, for example, water and mud damage from roof leaks) that aren’t specifically excluded.
Buy Loss Assessment Coverage
Buy at least $50,000 worth of “loss assessment coverage” to cover assessments made by the association for coverage shortfalls in the master policy. No matter how much you plan and double check paperwork, something will be forgotten and having loss assessment coverage will provide you with more protection.
Buy Deductible Assessment Coverage
Find out what the master policy deductible is (possibly $10,000), and buy deductible assessment coverage for that amount. Many associations make individual unit owners responsible for the entire master policy deductible if the loss is confined to their unit (for example, if a pipe breaks in a unit and floods that apartment).
Work with an agent with expertise in personal insurance who can help you design the condo insurance policy that best suits your unique situation and address other coverage needs, such as for sewer backup coverage, earthquake, flood, etc.
In a city like Miami, where natural disasters, thunderstorms, and proximity to water make insurance coverage necessary, make sure you have a partner by your side with your best interest in mind.
Contact All Nation Insurance today for a quote and to discuss your options.