Do I Need Landlord Insurance If I Rent A Condo?
The risk to a landlord is the same whether you rent a single family home or condo. If you own a rental property that is rented to others be sure to have the proper insurance policy. Most homeowners think their current home insurance policy will cover them if they own a condo that is a rental unit. Think again.
Renting your condo out is a great idea because you have the ability to gain passive income from a condo that most likely has little upkeep needed on the exterior. A lot of landlords end up renting a condo out because they moved to a larger home and either couldn't sell the condo or wanted to try property renting. This is good way to get comfortable with renting properties as there is generally less to worry about when owning a condo versus a single family home. Remember that the insurance is specific to the property and the type of property it is.The best part is condo landlord insurance is very inexpensive when compared to single family home rental insurance. This is due in large part to the fact a housing association is likely going to maintain the exterior of the unit. There is still the interior of the condo and the contents in the building that you are responsible for including your liability if the tenant is injured.
Make sure you ask your insurance agent about condo insurance for rental properties. Include enough coverage to rebuild the unit if a total loss occurs like a fire. Keep in mind that the personal property of your tenants is not covered on the landlord insurance policy. Each renter will need to get renters insurance if they want their belongings covered. It is highly recommended you require each tenant to have renters insurance.
Here is a list of common coverage items needed on a condo landlord policy:
- Building coverage - covers the interior of the condo
- Landlord content coverage - covers personal property of the landlord left at the rental
- Landlord liability coverage - covers the landlord against possible lawsuits for damage to tenant's property or injury
- Loss of rental income - covers income lost due to no tenants able to live in unit while it is being repaired from a covered loss