How to Value a Condo for Vacant Condo Insurance

When one seeks quotes in the market for vacant home insurance, one of the most important things is getting the value of insurance right. The value a vacant home needs to be insured for is not the sale price, but rather the rebuild or reconstruction cost assuming there is a total loss.

This can be very difficult when valuing a condominium. A "condo" is a condo by definition because the homeowners or condo association owns at least part of the dwelling. For example, it's common for the homeowner to own from "the studs inward" meaning the condo association owns the walls, roof, support beams, trees, shrubs, etc.

When the owner of a condo finds himself needing vacant condo insurance, the best formula to estimate the value of what the condominium needs to be insured for would be the following:

Cost of the flooring, electrical, plumping, kitchen cabinets, kitchen counter, bathrooms, lighting "fixtures," appliances, and drywall (with all labor costs) = insured value.

For most condos that sell for $150,000 the rebuild or reconstruction cost will be at least $60,000 and may be much higher, however the number should be well below the rebuild cost of a single family home.