Insurance and replacement Costs

How can you make sure that you have adequate insurance coverage for your home and its contents? Your lender may require you to have a basic policy that covers your dwelling, but you are responsible to figure out how much coverage is right for you for everything you own.

A replacement cost is the amount it tales to rebuild your home or repair damages with similar materials and quality. If you live in a condo or coop, the association carries insurance to replace the building in case of a total loss, or, and that happens more frequently, repair damages to the common elements of the building. You are only responsible to have insurance for everything within your demising walls of your unit.  This usually includes all built-ins such as bathroom fixtures, kitchen appliances and cabinets. If you have custom hard wood floors or carpets, add a replacement cost. 

It is good practice to take a room-by-room inventory of all your furniture and accessories, and document it with photos. Give a copy to your insurance company and keep a copy in a safe place or in cloud storage.  

When it's time to renew your policy, review it and make any changes that are necessary. If you did a remodeling of your condo and bought new furniture, you should update your inventory. Also , compare different insurers, as their coverages and premiums can vary. Many insurance companies offer discounts for combining auto, personal liability and home owners policies. 




Posted by Andreas Holder on
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