Here’s what influences the cost of your condo insurance:
The value of your personal property matters the most.
Cost also depends on what your building’s master policy covers.
Lower deductibles result in higher premiums.
You’re eligible for discounts when you combine insurance policies.
Q:Question I’m putting together my budget for buying a new condo. I’m not sure how much to set aside for insurance. How do I figure this out?
Farmers Insurance® agent Mona Verma, PhD, of Folsom, California discusses the factors that determine what you pay for condo insurance.
A:Answer The amount of insurance you choose for your personal property is the biggest factor when it comes to cost. You might have a media room loaded with high-end electronics or a cabinet full of imported china. Or maybe you’ve just set up housekeeping and have only the basics for now. The amount of coverage you may want depends on what you have to protect.
The next thing insurance companies consider is the building’s master insurance policy. Some master policies cover things like installed appliances and internal walls, and some don’t. Your agent can review the master policy to see exactly what’s covered, so you can decide what to cover with your own policy.
With any condo policy, the amount of your deductible affects your premiums. Farmers® policies have deductibles ranging from $250 to $1,000. You choose the amount based on your budget and how you want to be covered. Don’t forget that combining your condo insurance with other Farmers policies can get you an attractive discount.