Condo Insurance Advice

[Mark W. Ellingson II]

Hello, I am very new here, thinking about going pro at some point but I'm still in the middle of diving through a lot of the content.  I have one rental property currently, but it's just being rented to my son at a break even rate.  My wife and I are going to be purchasing a vacation home in Virginia Beach that we may turn into a rental at some point.  I am getting insurance and am being told that the industry standard is 20% of the value of the property.  We are getting the condo for 215K, it's a 2 bedroom, 2 bath 1360 square feet.  State Auto is offering the best rate so far but I have never heard of them.  Seems like the average per year is about $500 and State Auto is offering a policy for $329 per year for 43k of coverage, 30k personal property and a 1k deductible with 15k loss of use.  Does this seem like adequate coverage and a good quote?  Am I missing anything?  We will be down there about 30-40 days a year and it will be vacant with family and friends using it off and on.  

[Jason Bott]

@Mark W. Ellingson II State Auto is an A rated insurance carrier in the Midwest, you don't need to worry about them pay claims.

Keep in mind with a condo, you are covering the replacement of all of the finishes in the condo.  Think of everything from the studs to inside the condo.  Because you are not rebuilding the structure (the condo association is most likely responsible for that) the amount of coverage you need will be much less than the market price of the condo.

I don't recommend estimating the insured value with a "20%" valuation, but for you to actually come up with construction costs to replace the kitchen, bath, trim, doors carpet, etc.