When buying condo insurance for the first time in Middletown, DE, some owners make mistakes, thinking they can save money by not getting specific coverage. While you may save money initially, you could face a surprising cost later when you discover a risk isn’t covered. Blue Hen Insurance LLC can help you put the proper provisions in place to protect your home investment.

Your Condo Master Policy Doesn’t Cover Everything

You may believe your homeowner’s association master policy covers everything. It does not. Most master policies only cover the building’s exterior structure, common areas and liability in shared spaces. Additionally, it doesn’t cover your personal belongings, including clothing, furniture, decorations, and appliances. Read your master policy to determine where the homeowner’s association’s responsibility ends, and yours begins.

Underinsuring is the Most Common Mistake

Undervaluing your personal belongings is the most significant mistake. Many people often estimate too low. To avoid this mistake, create an inventory of your belongings and add up the cost. You may need a rider for valuable items such as jewelry or art. Also, opt for replacement cost coverage for lost or damaged items so you get the full value of those items under a covered risk.

Another area where condo owners typically buy too little coverage is liability. Insurance experts recommend that you have at least $300,000 to $500,000 of liability coverage. If you are a high-net-worth individual, consider umbrella coverage to protect against unexpected lawsuits, which can cover you for $1 million or more.

If you have recently renovated or upgraded various aspects of your condo, you need more coverage. Owners frequently forget that these spaces are worth more. Similarly, determine if you need additional coverage for water damage, like sewer backup or flooding. While some risks are covered, not all are.

Let Blue Hen Insurance LLC, serving Middletown, DE, assemble a condo insurance policy that meets your needs. Contact our office today to speak to one of our agents.