How Much is Enough? Getting Adequate Homeowners Coverage

 Legendary funny man Benny Goodman once said, “I don’t want to tell you how much insurance I carry with the Prudential, but all I can  say is: when I go, they go too!” The comedian hits on all-important issue: how much insurance is too much, and  how much is not enough?  

 When it comes to homeowner's insurance it is critical that both residents and  boards have adequate policies and there are not gaps in coverage.  

 Cover Yourself

 As a starting point, it is important that residents ensure their personal  property is covered. The co-op or condo's bylaws and proprietary lease will  help residents determine what will be covered by the building and what is  considered their personal property to insure. Anything not covered in the  master policy is the resident's responsibility and this varies building by  building. While some co-ops and condos offer all-in coverage in their master  policy, the vast majority require unit owners to carry their own individual  homeowner's policy as well.  

 According to insurance industry blog, these insurance  policies usually cover things like accidental discharge or overflow of water  from your plumbing, fire and lightning, explosions, theft, vandalism and  malicious mischief, sudden accidental damage from smoke, and so forth.  

 After this, residents need to assess their personal property and possessions in  order to determine a coverage amount for their unit, says Mari Ann Cole,  president of Long Island Coverage Corp., an insurance brokerage in Hauppauge. “Most insurance companies have a cost evaluation that is done over the phone  which includes the number of rooms, the number of people residing in the unit,  location and the value of the contents,” she says. “For the bare minimum we start with $75,000 in contents but that number can be  reached very quickly in today's world.”  


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