Condominium Insurance Coverage Limits

Like all homeowners policies, unit owner policies have maximum limits the company will pay for loss to specified types of property (these limits can vary among companies). It's important to understand these limits and how they apply.

Something to Keep in Mind

Coverage for certain types of property has a dollar limit. Here is a typical list of the types of property that may have "special limits" in a condominium unitowners policy:

  • Money, bank notes, coins
  • Business property
  • Watercraft including trailers, furnishings, and equipment
  • Trailers (other than boat trailers)
  • Firearms (applies to theft only)
  • Silverware and goldware (applies to theft only)
  • Computers and data processing equipment
  • Rugs, tapestries (theft only)

An example: Since most people don't own a yacht, it would be unfair to increase everyone's premium to cover the losses of the few who own yachts. Likewise, it would be unfair to force everyone to share in the losses of people with expensive collections such as firearms or silverware.

If you need higher limits for certain types of property, your State Farm agent can help.

The Difference Between Replacement Cost Coverage and Actual Cash Value

Historically, most homeowners policies have covered personal property on an actual cash value basis which, for example, could be based on the depreciated value of the property.

For example, your five-year-old sofa is destroyed by fire and would cost $1,000 to replace. An insurance payment for your sofa would be reduced by depreciation.

Today, however, most insurers, including State Farm, offer a replacement cost provision for condominium and other forms of homeowners protection. This allows your destroyed property to be replaced without deduction for depreciation. Of course, your deductible would still apply to the loss.

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See your policy and any additional endorsement for exact coverage details. This is only a general summary and description of coverage. See your policy for details, limitations, restrictions, and coverages.