7 Common Homeowners and Condo Insurance Mistakes
Do you need to purchase condo insurance in Florida? Condominium insurance ( and homeowners ) is essential for protecting your property. Florida is a beautiful state offering sunshine, an easy going lifestyle, and beaches galore. But it’s also prone to tropical storms, lightning strikes, tornadoes and hurricanes as we saw recently with Hurricane Ian. In fact Florida is # 1 in the number of hurricanes and #2 in lightning strikes.
From the Florida keys to Miami / Dade, from Fort Lauderdale to Pembroke Pines to Jupiter, if you’re searching for condo insurance in Florida, you should be aware of simple errors people make when choosing a homeowners insurance company and in selecting a policy. Read on to learn the mistakes to avoid when buying your insurance coverage.
Choosing Cash Value vs Replacement Cost
Having the right coverage is important when choosing your policy. One mistake that many people make is choosing cash value vs replacement cost. Cash value means that you’ll be reimbursed for your items minus the depreciation of the items.
We had a new client in Pembroke Pines that had ‘cash value’ selected on their old condo policy. This means that they wouldn’t have received the full value of the damage when it happened. We re-wrote their coverage so they selected replacement cost instead. it’s always better to choose “replacement cost” on your policy. Ask your agent if you’re not sure what you have.
Ignoring the Cost of Your Deductibles
Many people only consider the cost of their premium when choosing condo insurance. While this is certainly an important factor, you don’t want to ignore the cost of the deductible.
A lower premium is typically accompanied by a higher deductible, which can be a huge inconvenience in the event of total loss. For example, if you are trying to protect your condo in Tamarac but select a $10,000 deductible, you will have to pay the first $10,000 of expenses if you have a property damage claim before the insurance kicks in. So choose a lower deductible if you can. Select the lowest deductible you can afford.
Skipping Over the Terms of Your Policy
Condo insurance varies, and it’s certainly different than traditional homeowner’s insurance. Typical policies only cover property damage and liability risks inside the condo.
You shouldn’t assume that this is the only coverage you need. It’s important to thoroughly review the terms of your policy to see what your insurance will cover.
Having a Lack of Coverage
Unfortunately, condo owners tend to underestimate the value of their possessions or fail to get sufficient coverage for their needs. It’s important to get enough coverage to protect your property and ensure that you don’t leave yourself in a financial hole.
If you have a small condo in Pembroke Pines for example, your furniture and clothing will be covered. However if your luxury home in Parkland is filled with valuable antiques and your valuable rare book collection, you would need a ‘personal article floater policy’ because specialty items like antiques, Rolex watches, wedding rings and antiques etc. are typically not covered under a standard policy.
If you’re uncertain about terms in your coverage, be sure to ask your insurance agent so you understand everything that’s included.
Selecting a “Bare Walls” Master Policy
Many condo owners make the mistake of choosing a “bare walls” master policy. But this only covers damage to the walls, ceilings, and floor. This type of policy won’t cover other things like fixtures, bathrooms, and kitchen floors.
Avoiding the Fine Print
It’s always important to read through your entire insurance policy. Policies can be complicated and often includes complex information that the average person won’t be able to understand.
You want to ensure that you don’t skip over anything that can be important to your policy, whether it be the terms of service, deductibles, or coverage.
Choosing an Insurance Company Based on Price
Don’t choose an insurance company based on price, you should choose a company based on trust. Many companies will advertise low premiums, which can be enticing.
But it’s important to find a company with excellent customer service, has what you need, and a company that is transparent about the cost of the policy.
South Florida Condominium Insurance Coverage
With a homeowners insurance agency in Fort Lauderdale, we offer an easy way to get condo insurance in South Florida. Don’t make these common mistakes. Whether you’re protecting your family or yourself, we have a policy that will fit your needs. Just call (888) 910-1350 for a free quote.
Hurricane Ian damaged his personal property and condo, he reported it on Sept 30th and we cut a check to him on October 6th, only 6 days later!
Ready for your personalized South Florida condominium insurance coverage? Contact us today to get started.
