Update To How Much Insurance Should A Condo Owner Buy

My post has caused the grumblers to come out…

I’ve been lectured on my attempt to put some rules of thumb out there. It’s wrongheaded, unethical, misguided, and will probably cause baldness, I’m told.

Ya but… It’s a start. Plus, there is a fudge-factor (proof that we are somewhat guessing here).

If you start with the cost per square foot to build the condo, you can probably figure the unit owner is responsible for 20% to 40% of that – depending on condo-docs. Keep that in mind too.

My guess is that most condo owners have little idea what their insurance will be called on to insure should the condo be damaged. Insurance agents are not much help usually.

Maybe a service the condo-association could consider is an annual survey of insurance coverage limits of all the unit owners. At least then you’d see if your own insurance is out-of-line with the thinking of the herd.

****On another condo insurance issue… See my guide on condo board directors and officers insurance here