Tag Archive for condominium insurance

when is replacement cost not replacement cost? Condo insurance

You have a master policy with replacement cost. Good! You should.

When is replacement cost not replacement cost?

Just because you have a box checked off, does not mean that every loss is adjusted the same way. Like everything, look at the fine print in your policy.

Examples of when RC is now ACV ( actual cash value) in some policies:

  1. You have functional replacement cost
  2. your roof is old and out of it’s useful life
  3. carpeting
  4. property damage to others
  5. You don’t actually replace the item or property
  6. Your property is irreplaceable

These are just some of the examples you will find where replacement cost is not really replacement cost.


read your policy, or ask your insurance pro.


Getting a insurance quote for your condominium

You are sitting around at your latest condo board meeting. You are reviewing the budget and your meager finances.

Looks like you might have to increase monthly fees again. Everyone groans!!  sighs!! and mumbles under their breath.

“Hold the phone” someone says. Before we tax the owners again, let’s look at our expenses.

Running a condo is running a business.

You look at one of your biggest expenses and there is the elephant in the room. Insurance is big. Necessary, but big.

There are 100′s of articles talking about condominium insurance and 100′s of agents and companies that want your business. So how do you go about asking for a quote?


  1. Do go to an expert in condominium insurance
  2. Do put someone in charge that knows insurance
  3. Do an evaluation of needs before getting quotes
  4. Do due dilligence


  1. Don’t rely solely on your property manager
  2. Don’t rely just on your current agent
  3. Don’t ask for an apples to apples quote
  4. Don’t always take the cheapest price
  5. Don’t take away coverage w/o a lot of thought
  6. Don’t be afraid to fire a broker for not doing their job


There are many things to consider when shopping for insurance. remember that you are probably not an expert, and you rely on others expertise. The problem is that the agent is probably not an expert, the property manager is probably not a licensed insurance agent or counselor, and don’t forget that people are people and they look out for their best interest. Agents might go with the company with the highest commission, or the property manager might only use his/her buddy.

It is your money and your business, and your exposures at risk. Treat it with care and caution and do the best for YOU and YOUR association.