Depending on how expensive the item is that you are looking to cover under your required condo insurance policy the more your premiums may cost. If you inherited a very large jewelry collection from a wealthy relative who just passed away, you may end up need to add what is called a rider to your existing policy. A rider provides extra coverage for very expensive items that are generally not going to be covered under traditional policies.

A standard condo insurance policy will cover you in the event of fire, lightning, water damage, vandalism, theft, and many other perils. Your insurer will either reimburse you on the basis of what they call the replacement cost or actual cash value of the items lost. This is possibly the most important aspect of your policy to understand.

Get Actual Cash Value Coverage

When you buy a television, it will not last forever. Major insurance companies give different appliances differing useful lives. This means that a standard television may last the average consumer five to seven years. If your contract uses the actual cash value, the company will pay you the depreciated value of the television. A five year old television does not have all of the new features, upgraded technology, and remaining useful life that a brand new one has, therefore they will not give you enough to buy a brand new one.

If your policy compensates you at replacement value, you have better coverage than actual cash value. If someone broke in and stole your television, the insurer would pay you enough to purchase a brand new television. This is what it would cost to replace what you had.

Standard coverage will not give you coverage for your expensive stamp collection or old baseball cards. Special items that are not typically found in many homes will be more expensive to insure. A big percentage of households do not have a piece of artwork from a very well-known painter and most policies do not include coverage for such things in standard homeowner's policies. Keep in mind if you inherit something of great value to call your insurer and get a special rider to make sure if something happens you are covered.

Shop Around to Save

There are steps that you can take to try to lower your premiums by taking advantage of certain discounts to help offset the extra amount you will need to pay for a rider. If you install an alarm system you likely stand to save quite a bit on your premiums. You can also upgrade your plumbing and heating systems and get some serious discounts. Bundling this policy with your auto policy with the same company is one of the best ways to lower your payments.

A good way to determine if you need to increase the amount of coverage for your personal property is to take an inventory of everything you own in the condo. Add up what it would cost to go out to furniture stores and home improvement store to purchase a new washer, dryer, refrigerator, and every other appliance. Most people are really surprised when they add up the cost to replace everything they own.

If you recently acquired something valuable and have been wondering; does it cost more to insure expensive items, it most certainly does. Calling your provider to see what it would cost to get a special rider on your policy is very important. Do not get caught unprepared and underinsured. Call a few other providers and get quotes for a new policy to see if you can save money by switching companies.

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