condo insurance coverage alterations and additions

In my experience, most Manhattanites are vastly under-insured, particularly in condos where you own everything from the outside walls in. On the other hand, I had Chubb for many years and they always tried to insist that I have way more insurance than reasonable. The question as to the right rule of thumb has no right answer, much like the endless efforts here to say that a renovation should cost $xx per square foot. Assume in a total loss situation you would have to build out everything in the apartment from the outside walls in, and from the plumbing risers and electric feed out. But, unlike the decisions you might make in a planned renovation, the insurance company is only going to pay for like kind features to what you have now, so while you might prefer Waterworks and Sub Zero and herringbone floors if you were renovating, if you have American Standard and Kenmore and stick on parquet now, that is the most you will ever get paid for. So, $1MM is probably a bit high but not entirely insane if you have a fancy 1800 sq, but probably quite high as a proxy for the cost of an all out gut renovation of a modest 1800 sq ft.

$4K a year does not seem expensive, but prices vary significantly depending upon building size, age, composition, sprinklers, central station alarms, etc.