In my state when a condominium association is established the condo docs (master deed and declaration of trust) establish each owner's percentage of ownership. All shared costs - bills, condo dues, assessments, etc - are based on that percentage of ownership. I believe it's supposed to be based on value initially though it seems to often default to square footage.... more
in general we insure homes in the Southern California area from $150 per square foot to $200 per square foot. Homes that are more customized will normally be insured for $200 per square foot to $300 per square foot. The replacement cost of the home for insurance purposes is not determined by the purchase price. You can learn more by going to www.Farmers Insurance CA.com... more
If you purchased the home, the previous owner no longer has an insurable interest in the home. If they burn down your home and you don't have insurance and they do, you will not get paid because it is not your insurance policy and they will not get paid because they cant insure a home that they do not own. That would be like me selling you my car and keeping the insurance on it and you get in an accident and then they send me a check and you end up with a totaled vehicle and maybe a lawsuit. You should get a landlord policy until you are able to take possession of the home, that's my advice.... more
The answer to your question "Do you avoid buying a condo when the HOA does not provide earthquake insurance for all units" is YES!. The Cal earthquakes showed how poorly insured the condo's were, and the cost of eartquake insurance is now in a stste fund which is underfunded.
David Cooper. Las Vegas Foreclosure Investor in Bank Owned Cash flow Houses. FReee List +1-7024997037...
not a real estate agent. ask about limited partnerships... more
The best question to ask when looking at replacement cost amounts is "What happens if this amount of insurance is not enough and my house burns to the ground, will they still pay to replace my home completely?" The answer to that question in writing will tell you alot about the policy and the agent.