Question on condo insurance (HO-6) coverage?
May 16, 2010 by
Filed under condo insurance
Hypothetical: I determine that all my personal belongings in my condo are worth $10,000 total, and I buy $20,000 worth of coverage. Two years later everything is completely destroyed by some accident. Will I be paid the whole $20,000 by the insurance company (which essentially gives me a $10,000 profit)?
No. You would be paid the actual value of your loss. Read the policy.
No, you have to prove your losses, draw up a list, use your inventory, etc.
I’ve never seen an “agreed amount” clause on contents. It’s the LESSER of, the value of your stuff, or the policy limit.
It makes the inventory part pretty important.
BUT, the average person has more than $!0,000 of stuff, also.
The insurance company will pay up to the limit of the policy the losses that you can prove. The important thing is to have a policy that replaces at a “replacement cost” which will replace your values at today cost,
opposite to actual cash value”that will pay what you paid less depreciation
I can’t imagine that all you have in your condo is Worth only $10000, you better take a pen and piece of paper and start checking everything you own and you will be surprised
No. You’ll have to provide a list of the destroyed property and for things like furniture, you’ll be asked for receipts. If your policy is on a replacement cost basis, they’ll pay for a new one -of the same type. You’ll never profit from an insurance loss and your deductible will apply, so, technically – you loose. Not to mention that if you try and committ insurance fraud – you’ll be convicted of a felony and you’ll sit in jail. Let’s hope your “hypothetical” happens by coincidence, not on purpose!