If you own a condo in New York, you are not required by state law to ensure it, but it’s still a good idea. You probably will be required to carry condo insurance if you are financing the purchase through a bank loan. Here are essential points to know about condo insurance in NY.
What Does Condo Insurance Cover?
Although similar to homeowners’ or renter’s insurance, condo insurance in NY is not as clear on specific coverage. The difference is that you’ll need two types of plans to cover your condo: a master policy and an individual policy.
- Master policy – This plan covers the structure of your property, which includes your roof. It pays for both indoor and outdoor damage, as well as damage to the land it occupies. The three main options for a master policy are bare walls, single entity, and all-in coverage. Bare wall coverage involves drywall, plumbing, and wiring. Single entity coverage pays for flooring, cabinets, and lights. All-in coverage is the most comprehensive plan.
- Individual policy – While the master policy covers many perils, it doesn’t cover the replacement of personal belongings. You’ll need an individual policy for that.
How Does Condo Insurance Protect You?
A condo insurance policy typically covers the same types of perils that a standard homeowners plan covers. These perils include fire and wind damage as well as theft and vandalism. It also includes personal liability coverage, which pays for accidents to visitors to your condo. If you plan on having frequent guests at your condo, it’s a good idea to carry this coverage.
Another benefit to condo insurance is it pays living expenses if you’re ever forced to temporarily relocate while your condo is under repair due to a stated peril. That means you’ll be paid for a hotel and meals while you are away from your condo.
How Do You Get the Right Condo Insurance in NY?
- Read the Master Condo policy – Ask an insurance expert if there are parts you don’t understand. Aside from the cost, ask yourself if the coverage fits your needs.
- List the value of your belongings – It helps to create a list of your assets and their estimated values. It may affect your choice for deciding between a replacement cost policy or actual cash value (ACV) coverage. Replacement cost policies pay more than ACV plans.
- Assess your total assets – Adding up all your assets will determine the amount of condo coverage you need. Standard condo plans typically offer minimal protection, so consider raising coverage limits depending on risks.
How Much Do You Pay for Condo Insurance?
New York condo owners pay an average of $1,291 per year for coverage of $100,000 or more, according to the National Association of Insurance Commissioners (NAIC). The various factors that affect insurance costs include location, age of the complex, and type of building. Costs are lower if your condo is near a fire station or fire hydrant. Ask the insurance agent if you qualify for any other discounts. Options you can control that affect rates include your deductible, coverage limits, and amount of coverage.
Why Do You Choose Premier Risk Condo Insurance?
Every condo owner needs to build a risk management plan to protect their assets. At Premier Risk, L.L.C., we want to simplify your search for the right condo insurance in NY. Contact us today to learn more about condo insurance coverages.