Can someone explain unit coverage insurance on condos?

Question

im going to call the insurance co. but decided to get opinions first. okay i purchsed a condo here in florida. part of my HOA dues include pymts fo the master policy ( outside, structural, swimming pool, club house, etc) but I was told to get unit coverage which I understand (covering the inside) now what Im stoked about is my policy. again Im in florida. it has me paying about 535 per year. is that right for unit coverage. when I see my policy i see all these assessments and extra costs. who in the h**l is this citizens emergency assessment and recoupment, FIGA emergency emergency recoupment, huricane fund. I never seen these charges on other state policies. and is it mandatory I get replacement cost insurance, water backup and sump overflow coverage, unit owner special coverage A.

Answer 1

Unit coverage is insurance coverage specifically for your unit that is totally separate from the  HOA standard structural coverage.

Its basically a replacement for what you'd get on your own as homeowner's insurance.

If its optional, I would NOT get it because its likely to be way more expensive than what you need covered.  Instead, look to get your own homeowner's insurance policy where you can set your coverage and pay way less than $535.

Answer 2

Well, it's tricky, as it depends on how the individual master policy is worded.  

$535 is CHEAP, for FL.  I would have expected it to be much higher, actually.  

I think it's silly if you don't get replacement cost, water backup, special coverage A (make sure it's enough to cover all your built ins!), AND, I'd also recommend loss assessment coverage.

Answer 3

The policy will be like having a combination renters/ homeowners policy.  It will cover your belongings, coverage C  any improvements to your condo will be covered also under the coverage A.  You will also have liability and medical payemnts.  I usually recommend that you take a low deductible as it doesnt change your rates much.  Also be sure to take take out 10-20,000 for loss assessments.  This will help you in long run and wont cost you but a few $ per year.  Thank you for your questions.

Answer 4

Home insurance covers lots of different things. I'm not familiar with all the details of my policy, but my home insurance agent is always helpful. Try calling your agent or a homeowners agent in your city. http://www.easyhomeinsuranceguide.com They should be able to help you.

Answer 5

Hmm. Florida? The state with all the hurricanes? And you are surprised at all the storm-related add-ons for condo insurance? $535 for replacement cost unit insurance does not sound too bad to me. I assume you are paying a mortgage, with a small down payment, so you may be paying an additional premium due to a lower credit score. Florida is, ummm, also a state prone to water problems because it is close to sea level and a large part of it is covered by a swamp called the Okefenokee, so sump problems and water/sewer backups are, well, fairly common.  But wait a few months. Your unit may be under water and the insurance won't pay for a thing.