Ownership has its perks — but without insurance, you can find yourself behind the eight ball if something goes wrong. Here are the answers to the three most frequently asked questions.
1. Is condo/co-op insurance required by law?
No. Unlike car insurance, New York State doesn’t require that you insure your home. But most co-op boards and condo associations will require it, and your mortgage lender will tell you that you won’t be able to get to the closing table without it.
2. What types of insurance policies are there?
There are two: A replacement cost homeowners insurance policy covers the cost of rebuilding or repairing your home at the time it is damaged or destroyed (this covers damage to your property and possessions).
An actual cash value homeowners insurance policy pays claims after figuring for any depreciation in your home’s value (this is cheaper, but it usually won’t pay out enough to fully repair or rebuild a damaged home).
3. How can I lower the cost of insurance?
To reduce your monthly premium, you can opt for a higher deductible — that’s the amount of money you’ll have to pay out of pocket before your insurance kicks in.
Raising your deductible usually offers significant savings on premiums, because you’re willing to assume more risk.
But a deductible that is too high could lead to home disrepair if you sustain a large loss and have a deductible that is more than you can afford to pay out of pocket.
Contact Gotham Brokerage, a local, super service-oriented brokerage that will find the right apartment insurance to meet your needs. You’ll be in excellent hands – they are New York City’s number one apartment insurance broker and have been at it for more than 50 years.
[Photos courtesy of Unsplash]