How Do Condominium Insurance Policies’ Personal Property Coverages Vary?
The personal property coverage afforded by condominium insurance policies can differ in a few ways.
First, policies can have different personal property deductibles and limits, which greatly impact how much personal property protection a policy provides. A deductible determines what a policyholder must pay out of pocket before an insurer will begin paying for a covered claim, and a limit determines the maximum amount an insurer will pay for a covered claim.
Second, many policies have specific limits for high-value items, such as furs, firearms, electronics, jewelry, and artwork. Some policies may offer only limited coverage for belongings like these, while others might provide much more protection. Policies that limit coverage for high-value items often have add-on protections that policyholders can purchase to increase the protection provided for such belongings. Purchasing an add-on coverage will typically increase a policy’s premiums, though.
Finally, policies might provide either actual cash value or replacement value coverage for personal belongings. Actual cash value normally only covers belongings up to their fair-market value, which is frequently less than their replacement cost. Replacement value personal property coverage typically provides enough coverage to replace any items that are lost or damaged in a covered claim.