7 Common Mistakes When Buying Condo Insurance
Do you need to purchase condo insurance in Florida? Florida condo insurance is essential for protecting your property. Florida is a beautiful state offering sunshine, palm trees, and beaches galore. But it’s also prone to natural disasters, such as hurricanes, sinkholes, tropical storms, and tornados.
If you’re searching for condo insurance in Florida, read on to learn seven common mistakes to avoid when buying condo insurance.
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.
This means that you won’t receive the full value of the damage. This is why it’s always better to choose “replacement cost” in your policy instead.
Ignoring the Cost of Your Deductibles
Many people only consider the cost of their premium when choosing Florida 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.
Skipping Over the Terms of Your Policy
Condo insurance varies, and it’s certainly different than traditional homeowner’s insurance. Typical condo insurance only covers 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’re uncertain about terms in your coverage, be sure to ask to 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 ZK & Associates
Here at ZK & Associates, we offer the easiest way to get condo insurance in South Florida. Whether you’re protecting your family or yourself, we have a policy that will fit your needs.
Ready for your personalized South Florida condominium insurance coverage? Contact us today to get started.
