Typically, a condo policy covers structural items inside your condo unit such as paint, flooring, cabinets, crown molding, etc. When you remodel or upgrade your living space, it is a good idea to review your condo policy to insure the proper coverage is in place.
The Coverage A limit of a condo policy is determined by the cost to rebuild the home at today’s prices in the event of a covered loss. Factors such as building cost, materials, and labor factor into the Coverage A limit at the time the policy is purchased.
Coverage A limits are not to be confused with market value calculations or real estate pricing as these numbers are often arbitrary and based on what someone is willing to sell or buy a home.
To determine the right amount of Coverage A limits you need, consider the materials used in your kitchen, flooring, bathrooms, etc. then talk to your agent to obtain additional resources and information.