How Much Condo Insurance Do I Need?

Condo insurance is there to help cover your place and your property after a covered loss. How do you decide how much condo insurance to purchase though?

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Estimate your condo insurance needs

Before you buy, take the following 5 things into consideration when estimating your condo insurance needs:

1. What your H O A’s policy covers

What are you responsible for vs. what is H O A covered?

2. Cost to rebuild or replace your condo’s structure

Different than the price you paid for your condo.

3. Value of your personal property

Furniture, clothing, appliances…everything.

4. Value of your overall assets

To cover your liability.

5. Additional living expenses

Costs needed to live elsewhere in case your home is being repaired.

5 Things to Consider When Selecting Condo Insurance Coverage


Find out what the H O A's policy covers

As a condominium owner, your homeowners association or H O A generally collects monthly dues that can include insurance for the condo's building exteriors and common areas. To find out what that includes, review the association's bylaws or the master insurance policy.

There are two types of coverage your H O A's master insurance policy may provide:

  • Bare walls in - This would only cover the exterior structure of the building, so you would be responsible for insuring all the interior contents in your home including appliances, personal belongings, bathroom/kitchen fixtures, flooring, etc. if there was a loss.
  • All in - These policies can protect the exterior and structural interior contents of the building with the exception of your personal property.

Estimate the amount you would need to repair or replace your condo's interior structure

After you determine what your H O A's master insurance policy covers and which parts of the condo you're personally responsible for, you can get a better idea of how much coverage you may want.

Your condo insurance policy should cover all things not included in the master policy:

  • If your H O A has an "all-in" policy, it generally does not include improvements you make to your unit. You would need to purchase additional insurance to cover renovations, remodeling, etc.
  • If your H O A has a "bare walls" policy, determine the amount it would take to replace all of your condo's interiors. This could include lighting, flooring, cabinets, etc.

Farmers agent can assist you in estimating an amount of coverage that you would like for your particular situation.


Estimate the value of your personal items

Condo insurance can cover your personal items too if they are ever stolen, damaged or ruined (in a covered loss). To understand the full value of your personal property, start by taking a home inventory.

It’s easy to underestimate the value of your personal property, or forget to include things like clothing, furniture, appliances, electronics, etc. A full home inventory can help you make sure you’re not underinsured, and avoid future frustration.

If you need some help, check out the latest home inventory apps available to keep things organized, updated, and saved.

It’s also important to include unique or expensive items, like jewelry, artwork, musical equipment and more. Your condo insurance may only provide low coverage limits for these valuable items, so talk to a Farmers agent about adding personal property “floaters” to cover them the way you want.


Coverage for your assets

What if your dog bites someone? What if someone were injured on your property? If you’re ever found responsible or liable for damages, your assets, investments, and future could be at risk.

Unfortunately lawsuits are common, but your condo insurance policy may provide liability coverage. Is it enough though? Consider your net worth, available assets, and your own need to cover yourself from liability issues.

It may also be helpful to consider Farmers Personal Liability Umbrella, which supplements your present policies and provides additional coverage in increments of $1 million.


Estimate additional living expenses

If your condo were ever damaged, and you couldn’t live there while it was being replaced or repaired (and let’s hope that never happens) would you be covered to live somewhere else?

Without considering these additional costs into your condo insurance, you could find yourself unable to live in their homes after a loss, and stuck paying out of pocket for basic living expenses.

Think about your and your family’s daily expenses and needs, and take that into account when talking to a Farmers agent and estimating your condo insurance needs.

Find a Farmers agent today to customize a Condo insurance package for your needs.

If you prefer to get your condo quote by telephone, please call 1-800-493-4917.


Learn From Experience

Expand your knowledge base with articles relevant to you.

What Does Condo Insurance Cover?

Condo insurance covers your personal property located inside the unit such as furniture, electronics and clothing. It can also cover installed items — like flooring, interior walls and fixtures — if they aren’t already covered by your building’s master insurance policy. 

How Is the Replacement Cost of My Home Determined?

It's important to understand that replacement cost is not the same as the market value of your home — to determine the cost to rebuild your house, you could work with a local contractor, hire an appraiser or fill out an online cost calculator. 

Buying Home Insurance? Make Sure Your Valuables Are Covered

Congratulations on purchasing your first home! The short answer to your question is yes, all your property can be covered under a homeowners policy. However, one of the biggest mistakes consumers can make is to assume all your valuables will be covered automatically. You may have to add some items separately to your policy. 

Talk to a Farmers® agent about insurance for your condo.

Learn about all the options and potential discounts so you can choose the coverage you want.

Find a Farmers Agent