There is almost always a deductible on a condominium policy.
Deductibles are essential to risk management. Deductibles allow for risk sharing. With a deductible there is skin in the game for all parties.
You can control how much skin in the game you want. The bigger the deductible, the lower the premium.
Insurance companies use deductibles to eliminate nuisance claims, or normal maintenance claims, or to eliminate repeated smaller claims.
How much of a deductible is right for you?
- What can you bear? How much can you assume of a loss?
- What is your claims history?
- What is the cost savings?
If you have no history of claims, and you have adequate reserves, and you are not risk adverse, then take the biggest deductible that you can handle. Be careful to weigh the cost benefit to the increase in deductible. If going from a $1000 deductible to a $10,000 deductible saves you $100 per year, is it worth it? Probably not, but if it saves you $3000, then go for it. The savings will pay for it self in just three years.
Most common deductibles for a condominium association are:
There are many different kinds of deductibles on your policy, so be sure that you understand that if the property has a $1000 deductible, you might have a 5% deductible for flood or earthquake, and you may have a separate wind deductible, or no deductible at all on certain coverages.
Contact your agent or representative for a further review.
Use the power of knowledge to control you own destiny and policy.