Posted: Tue Jun 12, 2007 3:40 am Post subject: how much condo HO-6 coverage do I need?
I have a question about homeowner's insurance for a condo. I need to purchase an “HO-6” policy which will, among other things, cover replacement cost for internal real property (drywall, wall coverings, carpet, window treatments, etc.). What's the rule of thumb on how much coverage to get for internal real property? The purchase price of my condo was $115k. _________________ Register Now to have your Insurance queries solved.
First of all, read a copy of your associations policy. Find out what the master policy covers and what it doesn't.
Next, Make a list of what you may be structurally responsible for, for example: Any kind of flooring(hardwood,ceramic, and/or carpet), Wall coverings, Cabinets, Built-in appliances, plumbing fixtures, Lighting fixtures, and any improvements that have been attached and/or built on. This would go under your coverage "A." Most policy start out at 1,000, as you can see it can exceed over 100,000 easy. Take ten Minutes to add everything up, it will give you an idea.
Also, Make a list of your personal property, this would go under coverage "C." I would make sure you have a contents replacement cost option.
Have your personal Liability at a high limit, like 300,000-500,000 this is very inexpensive for a good amount of coverage. This would be Coverage "E."
Make sure you have high limits on "Loss Assessment," most commonly there are inadequate limits on this coverage. I would suggest having 50,000, also a very inexpensive option.
LOSS ASSESSMENT HELPS WHEN - Big Losses occur---> Associations limits gets exhausted----> Remaining damages divided up between condo owners.
Then go over any additional coverages you may need, for example: water backup, scheduled property, Earthquake, ID Theft, and many more.
I Hope this helps you in purchasing an HO-6, GOOD LUCK!
On a $115k Condo, you would probably be alright with $15k-$20k. You can figure your personal property limit fairly easily by adding up your personal belongings. There are no "Rules of Thumb" for condo's but I think if you come in somewhere in that range you should be fine.
Posted: Thu Jun 14, 2007 3:56 am Post subject: Lets try it !
My Friend,
There are no basic thumb-rules designed for the said cause but yes, the purpose of such rules may be summerized as follows:
# Find and rule the the causes of fines and foreclosures
# Sge-restricted condominiums should be set up abiding by the discrimination laws.
# You should also know how to draft documents (both the general developments docs as well as those pertaining to the homeowner's associations).
# Gain expertise towards settling issues referring to the clashes between govt. rules and association rules.
# Gain expertise to solve the liability disputes.
# The client-related issues arising out of construction defect litigation and false claims should be confined to you.
