Rental Property Investor · Andover, MA · Member since 2018 · 5 posts · 1 vote
Hi All,
I am new to real estate investing... about to close on my first rental - a small 1-bedroom condo in Lowell, MA. Having some trouble figuring out what type of policy I will need. From what I can tell from the condo docs, the master policy covers casualty and physical damage to buildings, public liability insurance, workman's comp, fidelity bonds, etc. I have a "Landlord Condo Insurance Quote" through Geico who I use for my primary residence that covers Dwelling, Household Furnishings, Loss of Use, Personal Liability (up to $500k), Medical Payments, Replacement Cost Household Furnishings, Building Ordinance or Law Coverage, Limited Fungi or Other Microbes Liability & Remediation.
Am I missing something? Note I am not taking ownership in an LLC, but under my name
Thanks in advance. As mentioned I am new to this and I am have been a bit confused trying to determine all the differences between homeowners, landlords, umbrella policies, etc. Just want to make sure I am set up for success.
The "Landlord Condo Insurance" sounds like what I have for my condo rentals. The HOA master covers the outside (roof, walkways, etc.) and the landlord policy covers the inside (drywall, cabinets, appliances, etc.). It's a good idea to require renters to have a renter insurance policy (it's not that much a month) because they will be in shock if something major happens and they expect the landlord to replace their personal belongings.
If the agent did not ask for a copy of the Condo documents they are not putting the time into determining your true needs. The Bylaws and Declaration of the Association spell out the boundaries of the unit (studs vs painted surface), what is considered part of the unit vs association (internal walls, cabinets, internal electrical, heating, & Plumbing). The Association's Master policy will rebuild up to what is required under the Association documents. You could have a nearly complete unit or an empty shell. You need to know which it is so your policy has adequate Limits to rebuild.
Did they explain what "Loss Assessment" covers, Did they offer "Personal Injury Protection" (for Libel, Slander, Wrongful entry, etc.). If they did not do either or these or if they offered a quote at less than the max. limits for Liability you should review the quotes with a different agent. I would recommend contacting an independent agent who represents multiple Insurance companies.
Feel free to PM me if you have any questions on the above.