I’m trying to figure out if this insurance plan is a good fit for my townhouse or if I should look into more coverage. Here’s what I have:
Building Property (Coverage A): $110,838
Personal Property (Coverage B): $30,000
Loss Assessment (Coverage D): $35,000
Personal Liability (Coverage L): $300,000
Medical Payments (Coverage M): $1,000
Credit Card/Bank Card Forgery: $1,000
Damage to Property of Others: $1,000
Loss of Use (Actual Loss Sustained)
Replacement Cost (Similar Construction): Included
Loss Settlement Provision: Building and personal property options both included
Deductibles: $500
Additional Policy Options:
Jewelry and Furs Coverage: Included
Silver/Goldware Theft: Included
Business Property: Included
Firearms: Included
Back-Up Sewer/Drain (Dwelling/Contents): 30% of Personal Property
Premium Total: $730/year
Does this look like solid coverage, or should I be upgrading anything? Any advice would be great!
I’m in the Midwest, and weather isn’t usually an issue except for the rare hailstorm.
Edit: The townhouse is 3 bedrooms, 3 baths, 2 car garage, and 2 stories.
Hard to say without knowing more, like the size of the place, roof type, and other details. Probably best to sit down with a local agent who can give you more personalized advice and suggestions.
The values usually follow a percentage of Coverage A, which should be enough to cover the cost to rebuild your home if there was a total loss. Your agent should’ve done an RCE, or ‘replacement cost estimator,’ where they ask questions about your home to figure out the right coverage. Maybe ask to see that RCE and double-check that everything matches your home’s details.
You should also check your HOA’s CCRs or bylaws. They might affect how much coverage you need. And look into your HOA’s insurance deductibles for different scenarios to see what would be required.
Harley said:
You should also check your HOA’s CCRs or bylaws. They might affect how much coverage you need. And look into your HOA’s insurance deductibles for different scenarios to see what would be required.
My neighbor had a pipe burst in their townhouse, and it flooded my kitchen. The repairs ended up costing $138,000, and it’s been a nightmare for five months. The black mold spread so fast, and we had to tear out a lot to get rid of it. A lot of people end up losing their homes because they can’t afford to cover repairs after something like this. Even if it’s not your fault, insurance can be a battle. I’d recommend getting the best coverage you can, and be ready to cover some costs yourself while repairs are ongoing.