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5 Ways You Can Reduce Your Condo Insurance

By Mike in Downtown San Diego Buying Tips with 0 Comments

If you’re buying a condo in downtown San Diego for sale, one of the first things you’ll be required to do is secure insurance for your new property. Condo insurance can add several hundred dollars a month to your mortgage payments, but these tips can help keep coverage affordable.

1. Make Your Condo Safer

One of the easiest ways to lower the cost of your condo insurance is by making your place safer. This includes installing updated smoke detectors, adding deadbolts to your external doors, installing a security system, and installing a fire alarm that will alert the local fire department automatically. You can call your insurance provider and ask for specifics that will help lower the overall cost of your policy.

2. Select Actual Cash Value Over Replacement Cost

Replacement cost is the sum of replacing everything you own. Assuming you have receipts, you will receive the purchase price for damaged items. Actual cash value is the current value of damaged items. This amount is the depreciated value of your items, and it doesn’t cover structural damage. Premiums for actual cash value, however, are less expensive.

3. Raise Your Deductible

Higher deductibles equal lower monthly payments. It also places more responsibility on you and means you’ll be coughing up more dough in the event of an accident. Review your current finances and decide if you’re comfortable paying more out of pocket initially, then raise your deductible to fit your budget.

4. Get an Umbrella Policy

An umbrella policy is a separate liability policy protecting you from condo or loft accidents, slips, and falls. Without it, injuries are your responsibility. Uninsured contractors and houseguests can sue for damages, jeopardizing your wages and bank accounts. The good news is umbrella policies are fairly affordable.

5. Get Your Credit Rating in Check

Premiums go up or down depending on your credit score. When you venture to another insurance provider, the credit score is a big factor in monthly payment decisions. Therefore, catch up on past debt, be smart with credit card spending, and gain control of loans and medical bills.

Securing insurance is just one of the many steps new homebuyers are required to take when buying real estate in downtown San Diego, and it can be easy to get caught up in everything there is to do. Work with a trusted real estate agent to ensure each “i” is dotted and “t” crossed. Call 92101 Urban Living today at (619) 649-0368 to schedule an appointment! ')}