Ezekeil Hudson's Insurance Podcast
Hudson Agency, LLC, provides comprehensive guides for customers on purchasing insurance. The site outlines the different types of insurance coverages available, including Homeowners, Commercial, Auto, and Life coverage. It then provides step-by-step instructions on how to purchase a policy, from assessing needs and researching providers to comparing quotes and understanding exclusions. Call
(901)290-2255 for more information or visit our website http://www.hudsonagencyinsurance.com.
Ezekeil Hudson's Insurance Podcast
Unlocking the Secrets to Condo Insurance: Navigating Coverage Options and Expert Tips with Ezekiel Hudson
Unlock the secrets to mastering your condo insurance with insights from Ezekiel H. Hudson of Hudson Agency LLC. Ever wondered about the differences between "bare walls in" and "all in" master policies provided by condo associations? This episode offers a comprehensive guide to understanding these distinctions, ensuring you avoid any unexpected and costly surprises. We'll also demystify the elements of an individual condo insurance policy (HO6), breaking down personal property, interior structures, and liability coverage. Plus, we’ll explain the importance of loss of use and loss assessment coverage to keep you fully protected.
Don’t miss our practical tips for navigating your condo insurance options with confidence. We’ll clarify the differences between Actual Cash Value (ACV) and Replacement Cost Value (RCV), and how choosing one over the other affects your premiums and coverage. Get expert advice on shopping for insurance quotes, including the benefits of consulting independent insurance agents versus relying on online comparison websites. This episode is packed with indispensable guidance for securing the best condo insurance tailored to your needs. For personalized assistance, reach out to Ezekiel and his team at Hudson Agency LLC by calling
901-290-2255 or visiting hudsonagencyinsurance.com.
https://www.hudsonagencyinsurance.com
https://www.facebook.com/henryhudsonagency
Buying your first condo. That's a big deal. You've earned those briding rights for sure. But before you go all out on that housewarming party, we got to talk about something maybe not as fun as picking out a new couch, but way more important in the long run Condo insurance. And to guide us through this deep dive, we're turning to how to Buy Condo Insurance, a guide by Ezekiel H Hudson.
Speaker 2:Seriously, this guide is like your insurance Bible.
Speaker 1:No kidding. Ezekiel, by the way, knows a thing or two about this stuff. He's an insurance agent over at Hudson Agency LLC.
Speaker 2:He really does, and something he emphasizes is that, unlike renting when you own a condo, you're responsible for insuring more than just your stuff.
Speaker 1:Right, and that's where I think a lot of first-time buyers especially they kind of get tripped up Totally Like with the whole master policy thing.
Speaker 2:Yeah, the condo associations policy.
Speaker 1:Yeah, most people just assume that covers like everything inside their unit, but Ezekiel points out that's not always the case.
Speaker 2:Definitely not. It's a super common misconception that can lead to, you know, some not so pleasant surprises later on. Ezekiel breaks down these master policies into two main types bare walls in, and then all in.
Speaker 1:Okay, so bare walls in? That sounds kind of scary. What exactly does that mean?
Speaker 2:Basically it means the master policy covers the building shell. So think like the exterior walls, the roof, any shared areas, but and this is important anything inside your specific unit. That's all on you.
Speaker 1:So like if I finally splurge on those new kitchen cabinets I've been eyeing.
Speaker 2:Yep, those cabinets, those gorgeous hardwood floors you might be picturing.
Speaker 1:Oh no, those wouldn't be covered.
Speaker 2:You'd need separate coverage for all of that under a bare walls in policy.
Speaker 1:Yikes. Okay, so that's bare walls in.
Speaker 2:What about all in? Does that mean you're totally covered then? Well, not always I mean all in coverage. It usually offers more than bare walls in Right Right Like. It might include things like fixtures, maybe some appliances, interior walls, but there are still often limits. Or maybe doesn't cover upgrades or improvements you've made.
Speaker 1:So even if I went all out on those fancy new appliances- yeah, you might assume those are part of the deal.
Speaker 2:But then boom, disaster strikes and suddenly you've got this massive bill because your fancy dishwasher isn't actually covered the way you thought it was.
Speaker 1:Okay, this is starting to sound a little overwhelming, honestly. How do you even avoid all these potential problems?
Speaker 2:Honestly, it's simpler than it sounds. Read the fine print.
Speaker 1:Seriously get a copy of that master policy and read it, like really read it. Or, even better, have your insurance agent or someone from the condo association walk you through it. They can explain all the nitty gritty details so you actually know what is and isn't covered.
Speaker 2:That makes a lot of sense. Don't just assume you're covered. Make sure you actually are. So once you've tackled that master policy, then it's time to focus on your own condo insurance right.
Speaker 1:Exactly, and that's where Ezekiel's advice on your insurance needs more than stuff comes in, because it's not just about replacing your stuff if something happens, although that's obviously important. It's about having that financial protection against a whole bunch of risks that come with owning a condo your own condo insurance policy. It's often called an HO6. It's there to protect you from those unexpected events that, well, you just never know when they're going to happen. So let's break it down. What are the key things this HO6 policy usually covers?
Speaker 2:So you've got your personal property coverage right. That's all your stuff Furniture, electronics, clothes, sports equipment, kitchen gadgets, you name it.
Speaker 1:Basically everything you own.
Speaker 2:Pretty much. Then there's coverage for the interior structure of your actual unit Walls, floors, ceilings.
Speaker 1:So, going back to our earlier example, that would include those hardwood floors and those fancy new cabinets. So it's like having your own little insurance policy just for your individual unit.
Speaker 2:Exactly, but it goes even beyond that. Condo insurance also usually includes what's called liability coverage. This was huge, because it protects you if someone gets hurt inside your condo or if you accidentally damage someone else's property.
Speaker 1:Ooh, that's a good one. Like imagine spilling red wine all over your neighbor's white carpet during a party. You definitely want liability coverage for that.
Speaker 2:Oh for sure. Or let's say, someone's over at your place and they trip on a rug, hurt themselves Liability coverage that could help cover their medical expenses, maybe even legal fees, if they decide to sue. It's all about having that safety net.
Speaker 1:Okay, so we've got the stuff inside our condo covered, the interior structure. We've got protection if someone gets hurt. What else is there?
Speaker 2:Two things that people often overlook, but they're super important Loss of use coverage and loss assessment coverage.
Speaker 1:Okay, loss of use. Tell me more about that one.
Speaker 2:So loss of use. It's sometimes called additional living expenses or ALE. Basically it covers the costs you'd rack up if your condo, let's say it, becomes unlivable because of something that's covered by your insurance, like a fire, a major pipe burst, that kind of thing.
Speaker 1:So that would help with things like hotel bills, meals if you can't use your kitchen, even pep boarding if you can't stay at your place right, exactly, it's like a little financial cushion during a stressful time. That's huge. Okay, now what about loss assessment coverage?
Speaker 2:So that one's a bit more specific. It basically kicks in when the condo association's master policy isn't enough to cover damage to like the building's common areas. They might do what's called a special assessment, where they ask all the condo owners to chip in to cover the difference.
Speaker 1:So say, there's a big fire in the building's parking garage and the master policy only covers part of the damage. Loss assessment coverage would help cover my share of the rest of the costs.
Speaker 2:Exactly. In fact, Ezekiel tells the story in the guide about a client of his who got hit with this huge bill after a fire in their building's parking garage. The client of his who got hit with this huge bill after a fire in their building's parking garage.
Speaker 1:The master policy didn't cover everything.
Speaker 2:Oh no, yeah. Each owner had to pay thousands of dollars, but this client they had lost assessment coverage, so they were totally fine. It saved them from a huge financial headache.
Speaker 1:Wow, that's like the perfect example of why understanding these different types of coverage is so important. It's easy to overlook the less obvious ones until you're in a situation where you actually need them.
Speaker 2:A hundred percent Condo insurance. It's not just about like checking boxes on a form. It's about making informed decisions based on your needs, your life, and you know the potential risks that come with owning a condo.
Speaker 1:So we've covered the main types of coverage you might need, but how do you actually figure out how much coverage you need? I feel like that's where things always get a little fuzzy for me.
Speaker 2:Totally, and that's where we get into the whole actual cash value versus replacement cost value thing. So we're talking actual cash value versus replacement cost value.
Speaker 1:Yeah, what's the deal with that? It sounds kind of complicated, I know.
Speaker 2:It sounds a little jargony right, it does. But it's actually pretty straightforward. Once you break it down See actual cash value or ACV it factors in depreciation.
Speaker 1:Depreciation like my, stuff gets old.
Speaker 2:Exactly so, like if your five-year-old TV gets damaged in a fire. Acv would only give you enough money to replace it with well, another five-year-old TV, taking into account the fact that it wasn't brand new anymore, even though it was working perfectly fine.
Speaker 1:Okay, so not ideal if I was hoping to upgrade in the process. What about replacement cost value?
Speaker 2:That sounds more promising it can be RCV that hooks you up with enough money to replace your stuff with brand new equivalents. So same scenario Fire your TVs a goner, but this time, with RCV, you get enough to buy a shiny new TV with all the latest features.
Speaker 1:Okay, that definitely sounds more like it, but I'm guessing it probably costs more.
Speaker 2:You got it. Rcv usually means higher premiums because the insurance company's on the hook for more. If you need to file a claim With ACV, you're basically sharing more of that risk because you're getting a lower payout if something happens.
Speaker 1:So it's like that classic tradeoff right Lower premiums, now maybe not enough coverage later or higher premiums, but you're totally covered if you need to replace your stuff.
Speaker 2:Exactly. It's a personal decision really depends on your budget, your risk tolerance, all of that. Talking it through with an insurance agent can be super helpful because they can explain all the ins and outs and help you figure out what's best for you.
Speaker 1:Okay. So let's say we've tackled the master policy, we've got a handle on the different types of coverage we might need, and we've even figured out if we're Team ACV or Team RCV. What's next in this whole condo insurance journey?
Speaker 2:Time to shop around for those insurance quotes.
Speaker 1:The moment of truth. Yeah, it might not be the most exciting part of buying a condo.
Speaker 2:I'll be honest, but it's super important I get it. So how do we actually go about getting these quotes? Is it like a whole big thing? No, it's not nearly as painful as you might think. You can start by reaching out to different insurance companies directly. You know the big names you've probably heard of maybe some local ones too.
Speaker 1:And I'm guessing those online comparison websites, those can be helpful too.
Speaker 2:Yeah, they could be a good starting point, kind of give you a quick sense of what's out there. But here's the thing don't rely on those alone.
Speaker 1:Why not? What's wrong with them?
Speaker 2:They don't always give you the full picture. Sometimes they miss those little details, those nuances that can actually make a big difference in the long run.
Speaker 1:Okay, so how do we avoid that Talk to an actual human?
Speaker 2:You got it. Talking to an independent insurance agent can be a total game changer. Well, they work with multiple insurance companies so they can give you a more personalized perspective, compare different policies side by side and really help you understand those sometimes confusing differences.
Speaker 1:Okay, so it's like having a personal shopper for insurance. They do all the legwork for you.
Speaker 2:Exactly.
Speaker 1:But let's be real. A lot of us, myself included, we're definitely looking at the price tag when we're comparing those quotes.
Speaker 2:Oh for sure, Price is definitely important. But here's Ezekiel's big piece of advice, and I totally agree with him Don't automatically go with the absolute cheapest option.
Speaker 1:Why not? Isn't that the whole point of getting multiple quotes?
Speaker 2:Because sometimes that super cheap option it's cheap for a reason it might be skimming on coverage you actually need, which could come back to bite you later on.
Speaker 1:So it's about finding that balance right.
Speaker 2:Exactly. It's about finding a policy that gives you enough coverage from a company you trust, all at a price you can actually afford. It's not just about the cheapest, it's about the best value.
Speaker 1:I like that Best value, not just cheapest. So, besides price, what else should we be looking at when we're comparing all these different insurers and policies?
Speaker 2:One word Reputation. Look at the company's customer service reputation. Are they easy to get a hold of? Do they have a good track record of responding to claims quickly and fairly? Because the last thing you want is to be dealing with a difficult or unresponsive insurance company when you're already stressed out about, like a fire or a flood or whatever happened.
Speaker 1:It's like you've got enough on your plate. The last thing you need is to be battling your insurance company on top of everything else.
Speaker 2:Totally. You want an insurance company that's going to be there for you when you actually need them, not give you the runaround.
Speaker 1:Makes sense, what else?
Speaker 2:Check out the company's financial stability. You want to make sure they're financially sound, that they'll actually be able to pay out if you ever need to file a claim. There are websites like AM Best and Standard Poor's. They give financial strength ratings to insurance companies. It's definitely worth taking a look at those.
Speaker 1:So it's about having that peace of mind, knowing that the company you're trusting with your financial well-being is actually legit and will be there when you need them.
Speaker 2:A hundred percent. And here's another pro tip from Ezekiel, and this one's important them A hundred percent. And here's another pro tip from Ezekiel, and this one's important. Don't be afraid to negotiate?
Speaker 1:Wait, really, we can negotiate with insurance companies.
Speaker 2:Absolutely. They want your business right. So if you've got a good driving record, maybe a clean claims history, or even if you found a better rate from another company, use that as leverage.
Speaker 1:Oh, I like that.
Speaker 2:You have more power than you think you do, so don't just accept the first offer. Make sure you're getting the best possible deal.
Speaker 1:Okay, I'm feeling empowered already. So we've done our research, compared those quotes, maybe even channeled our inner negotiator and got a better rate. We're good to go right. Sign on the dotted line.
Speaker 2:Hold your horses.
Speaker 1:Oh no.
Speaker 2:What now? One last thing. Read the fine print.
Speaker 1:I know I know those policy documents. They can be super long and boring.
Speaker 2:And full of words we don't understand.
Speaker 1:Right, but honestly, taking those few extra minutes to really understand what you're signing up for, that can save you from a world of headaches later, trust me. Okay, fine print it is, but what should we be looking for specifically when we're reading through all that stuff? Give us the highlights.
Speaker 2:First of all, coverage limits.
Speaker 1:Coverage limits.
Speaker 2:Yeah, that's the maximum amount the insurance company will pay out if something happens. You want to make sure those limits are high enough to actually cover your stuff.
Speaker 1:Got it.
Speaker 2:Then there are deductibles. You know what those are. Right, vaguely, your deductible, that's the amount you'd have to pay out of pocket before the insurance actually kicks in.
Speaker 1:Oh, right, right Okay.
Speaker 2:And, of course, we've got to talk about exclusions. Those are the specific situations or events that your policy doesn't cover, and there can be quite a few, so you've got to watch out for those.
Speaker 1:Exclusions sound a little sneaky.
Speaker 2:A little bit Like floods and earthquakes. Those are big ones that a lot of standard condo insurance policies don't cover.
Speaker 1:So I might need like separate policies for those.
Speaker 2:You might, especially if you live in an area where those things are more likely to happen. And then another thing to pay close attention to coverage limits for anything super valuable. You know, expensive jewelry, Maybe you've got some fancy artwork, high-end electronics. Your standard coverage might not be enough for those.
Speaker 1:So what do I do?
Speaker 2:Talk to your agent about adding a special rider to your policy that makes sure those items are fully covered. It's about tailoring your coverage to your life.
Speaker 1:Okay. So it's like building your own little insurance fortress. You've got to make sure there are no gaps in those walls.
Speaker 2:I love that. That's a great way to think about it. So you're saying it's all about customizing making sure you've got the right protection for your unique situation, exactly. And that's actually a perfect segue, because there are even more ways to customize your coverage with what Ezekiel calls additional coverage options. These can give you that extra peace of mind.
Speaker 1:Okay. So additional coverage options, those are like the insurance equivalent of what those super heavy duty raincoats you've got stashed away, just in case.
Speaker 2:Exactly. You're hoping you never need them, but when that downpour hits you're sure glad you've got them.
Speaker 1:Okay, I'm hooked. Give me some examples. What kind of insurance raincoats are we talking about here?
Speaker 2:Well, we've already touched on a couple, like those riders for high value items. Those are key if you've got stuff that's worth more than what your standard policy would cover. Like, imagine there's a fire in your condo and your insurance it'll only cover your jewelry up to a certain amount. A high-value item rider that swoops in and covers the rest, so your precious pieces are totally protected.
Speaker 1:Okay, that's a relief, especially, you know, for things like family heirlooms or anything with sentimental value that you, just you couldn't replace.
Speaker 2:Right, and of course we talked about flood insurance and earthquake insurance. Those usually aren't included in those basic policies, so if you're in an area where those are a risk, you really got to think about adding those on.
Speaker 1:Yeah, better safe than sorry, right.
Speaker 2:Exactly. And then there's one more. I got to mention Umbrella insurance. This one, it's like the ultimate safety net.
Speaker 1:Umbrella insurance.
Speaker 2:Okay, that sounds pretty serious. Tell me more. So picture this You're in an accident, something bad, and you're at fault, and the damage is they're way more than what your regular car insurance or liability coverage will cover. That's where umbrella insurance comes in. It kicks in and provides that extra layer of protection to help cover those costs that go beyond your other policies.
Speaker 1:So it's like having this extra shield just in case.
Speaker 2:Precisely, and it's not just for those like freak accidents.
Speaker 1:Yeah.
Speaker 2:Let's say, someone sues you for something that happened at your place and the lawsuit. It's more than your liability coverage Umbrella insurance that can help cover those costs too. It's about having that peace of mind, knowing you're protected even in those worst case scenarios.
Speaker 1:Those are some pretty good insurance raincoats, for sure. I'm getting the sense that, ezekiel, he's all about that personalized approach to condo insurance, wouldn't you say?
Speaker 2:Absolutely. He's big on emphasizing that there's no one size fits all solution, the right insurance for you. It all depends on you, your situation, how much risk you're comfortable with, what you can afford.
Speaker 1:But his guide, it gives you the info the tools so you can make a smart decision, something that actually works for you. So we've shopped around, got those quotes, compared everything, read the fine print, even thought about those extra layers of protection. Any final words of wisdom from Ezekiel before we head off into the wild world of condo ownership Don't rush through that final review of your policy.
Speaker 2:It's so easy to just skim it and assume everything's good to go. But taking a few minutes to really double check everything, that can prevent a lot of headaches later on, trust me.
Speaker 1:It's like that last look over an important email before you hit send. Make sure you didn't miss anything.
Speaker 2:Go. It's like that last look over an important email before you hit send. Make sure you didn't miss anything. Go over those coverage limits again. The deductibles. Those exclusions the whole nine yards. And if anything seems off or confusing, just ask. Better to get those questions answered now than to try and figure it out later.
Speaker 1:Ask questions. Stay informed Be sure about everything before you sign anything.
Speaker 2:Exactly, Buying a condo is a huge deal right, Having the right insurance. It's part of protecting that investment and giving you that peace of mind as you start this exciting new chapter.
Speaker 1:Couldn't have said it better myself. So there you have it, your crash course in how to buy condo insurance, with expert advice straight from Ezekiel H Hudson's guide. If you're looking for more personalized help, definitely reach out to Ezekiel over at Hudson Agency LLC. Their number is 901-290-2255. Or you can check out their website, hudsonagencyinsurancecom.
Speaker 2:They're great, super helpful for all things. Condo insurance.
Speaker 1:Best Now, as you're settling into your new place, maybe hanging up some artwork? Here's something to think about how does really understanding your insurance coverage, how does that not only only protect you financially but also give you that sense of confidence, that security as a homeowner? Something to ponder. But for now we'll wrap up this deep dive into the world of condo insurance. Thanks for us.