I would insure it for replacement costs. You will have to read the association's insurance policy before you decide they will do anything if your house is burned by one of their's. I would also consider getting replacement cost on my belongings as they are not usually covered in a fire insurance policy unless you add a personal property rider. Then you will need to photograph everything of value and store them in a bank safety deposit box along with your other important papers and anything else you don't want to lose in a fire or other disaster, it doesn't say where you are, but that could be a consideration as well. It is better to be over insured than under, 5K per room won't even pay your mortgage off, and that is another thing I would look into, good luck!