Condex Question:

[Charles0515]

What is the name of your state (only U.S. law)? NH

Hello everyone,
Really confused and need some help. My wife and I are purchasing one side of a Condex in Londonderry, NH. Currently Its a bank owned property and they know nothing about anything.
Now my problem is the insurance... my closing date is 4/27 and the bank called yesterday and said we need a Master poilcy on the entire building as well as seperate insurance before it would be approved!
I need to keep this as low as I possibly can so how can i tweak this to stay low.
My real estate agent talked to the neighbors and they pretty much think they are "covered". However we currently think there is no master policy currently on the unit since they really didnt know what we we're talking about.


Now in my towns accessors report it says:
Current Property Assessment
Card 1 Value Year Unofficial 2008 Building Value 121,500
Xtra Features Value 0
Land Area 1.255 acres Land Value 85,600
Total Value 207,100



Would that mean I would need a liabliliy for my master policy of about 250,000since building vaule per unit is 121,500?

I went to allstate and they put my liability at like a million dollars... Then the yearly payment was very high, if i went with a more exact figure would it lower the premium alot?

[moburkes]

If you believe that, in the event of a lawsuit, your total damages would be less than $250,000, then purchase that amount of insurance. If you believe that, for additional money, a $1M policy would better suit your needs, then purchase that.

[JustAPal00]

Originally Posted by Charles0515

What is the name of your state (only U.S. law)? NH

Hello everyone,
Really confused and need some help. My wife and I are purchasing one side of a Condex in Londonderry, NH. Currently Its a bank owned property and they know nothing about anything.
Now my problem is the insurance... my closing date is 4/27 and the bank called yesterday and said we need a Master poilcy on the entire building as well as seperate insurance before it would be approved!
I need to keep this as low as I possibly can so how can i tweak this to stay low.
My real estate agent talked to the neighbors and they pretty much think they are "covered". However we currently think there is no master policy currently on the unit since they really didnt know what we we're talking about.


Now in my towns accessors report it says:
Current Property Assessment
Card 1 Value Year Unofficial 2008 Building Value 121,500
Xtra Features Value 0
Land Area 1.255 acres Land Value 85,600
Total Value 207,100



Would that mean I would need a liabliliy for my master policy of about 250,000since building vaule per unit is 121,500?

I went to allstate and they put my liability at like a million dollars... Then the yearly payment was very high, if i went with a more exact figure would it lower the premium alot?

Those are tax assesment values which are related to real estate values. They have nothing to do with the amount of insurance you should purchase. You need enough to rebuild the property if it were destroyed. The lender will probably require "guaranteed replacement cost". Your agent or lender should be able to help you come up with an approximate amount of insurance to cover your property. Also the liability part has nothing to do with the coverage on the dwelling. It covers you if someone slips and falls and sues!

[moburkes]

What is a condex, by the way?

In any case, your lender may require replacement cost, but not guaranteed replacement cost. Not all carriers offer guaranteed RC in all states, but most will offer an additional 25 to 50% on top of the 100% RC that the policy is written for.

[JustAPal00]

Originally Posted by moburkes

What is a condex, by the way?

In any case, your lender may require replacement cost, but not guaranteed replacement cost. Not all carriers offer guaranteed RC in all states, but most will offer an additional 25 to 50% on top of the 100% RC that the policy is written for.

A condex is like a condo but with no association. The owners are responsible for the whole building (usually a duplex) and all maintanence. The problem is if say the roof needs replaced and one owner is unable to pay there share, the other may have to foot the bill.

[moburkes]

Thanks for the explanation.