Home alone - protecting your home

Hurricanes, earthquakes, brush fires, floods and tornadoes - disasters can strike anytime, anywhere. Then there are electrical, kitchen or chimney fires; break-ins or theft; water damage from broken appliances; and other household disasters. Before tragedy strikes, review your condominium and cooperative insurance coverage to make sure an unwelcome event won't trigger an unwanted surprise.

How Much Insurance is Enough?

To find out, list what you own - interior and exterior wall space, parking stalls, storage areas, garden or grounds, as well as personal possessions. Next, make sure you know what insurance coverage the condo association or co-op provides, and the rules that affect your ability to rebuild or repair. Finally, review your insurance policy to understand your coverage. While some policies combine coverage for structural improvements and contents into a single amount, giving you flexibility at the time of loss, other policies require separate limits for each. Insurance from other companies often requires separate limits for each "In general," notes Carmel Fauci, director of New York's Frank Crystal & Co., "the co-op association's building policy usually covers up to the primer coats of paint on the wall, ceilings and the bare wooden floors. The individual co-op owner must insure anything from there." She advises co-op and condo owners "to invest in a comprehensive replacement policy that covers not only personal belongings, but woodwork, kitchen cabinets, bathroom fixtures and wall coverings."

Know the Replacement Cost

The most probable price you could get when selling your condo or co-op is its market value. Should you base your coverage on this amount? No! Repair and replacement costs may have no relation to market value or price paid.

The cost to repair just the interior could actually exceed the original cost! Why? Because building codes that weren't in effect when your condo or co-op was built may apply now! Make sure you have adequate coverage - know what your association will pay versus your responsibility. Consider the cost to rebuild structural elements, such as wall and floor coverings, cabinets and bookcases. Be sure to include any improvements. Lastly, add your personal property into your calculations.

Consider Liability

People may trip and fall. Pipes may burst, and flood your neighbor's unit. Consider a "worst case" event and calculate liability amounts accordingly, says Fauci. "It's easy to put a dollar value on your property, but not on how much you're going to be sued for - or by whom!"

Tips on Rental Property

Be a stickler for safety and proper maintenance to help minimize loss at your rental property. Conduct annual inspections for safety. Examine chimneys, balconies, stairs and railings. Look for flammable materials, overloaded plugs and too many tenants in one unit. Lastly, get sufficient property insurance coverage for your investment.

See also:

• Home alone - protecting your home
• Four Steps to Fire Safety
• How to handle a kitchen fire
• Safety standards for rental properties
• A Guide to Personal Watercraft Safety
• Staying Safe on Your ATV

You might also consider :

• Homeowners policies
• Condo/Townhouse insurance
• Mobile/Manufactured insurance
• Renters insurance
• Rental Property insurance
• Second Home insurance