To calculate the Dwelling Coverage:
\[ \text{Total Cost} = \text{Square Footage} \times \text{Cost per Square Foot} \]
\[ \text{HOA Coverage Amount} = \text{Total Cost} \times \left(\frac{\text{HOA Coverage}}{100}\right) \]
\[ \text{Dwelling Coverage Needed} = \text{Total Cost} - \text{HOA Coverage Amount} \]
Condo Dwelling Coverage, also known as building property coverage, covers the interior of your condo unit that is not covered by the HOA's master policy. This includes fixtures, flooring, and any improvements you have made[^1^][^2^].
Let's assume the following values:
Using the formula:
\[ \text{Total Cost} = 1500 \times 200 = 300,000 \text{ dollars} \]
\[ \text{HOA Coverage Amount} = 300,000 \times \left(\frac{30}{100}\right) = 90,000 \text{ dollars} \]
\[ \text{Dwelling Coverage Needed} = 300,000 - 90,000 = 210,000 \text{ dollars} \]
The Dwelling Coverage needed is $210,000.
Let's assume the following values:
Using the formula:
\[ \text{Total Cost} = 2000 \times 250 = 500,000 \text{ dollars} \]
\[ \text{HOA Coverage Amount} = 500,000 \times \left(\frac{40}{100}\right) = 200,000 \text{ dollars} \]
\[ \text{Dwelling Coverage Needed} = 500,000 - 200,000 = 300,000 \text{ dollars} \]
The Dwelling Coverage needed is $300,000.