HOAs cover full exterior what insurance is recommended?

Question

Hey BP,

Right now I am looking at a deal to potentially buy a bundle of condos on a commercial loan. The Hoas currently cover all exterior roof, siding, etc. What should I except as far as getting insurance for the interior if any?

Thanks for your help,

Joel

Thomas S. · Answer

1M liability, full interior and coverage in event tenants do anything to damage other condos, water, fire, insect infestation etc.

Tenants have been known to turn bedrooms into interior garden so you need full coverage. Inspect regularly to protect your investment.

Joel Kadlec · Answer

Chris and Megan,

Thank you for the responses that was helpful. That gives me enough to know where to look now!

Megan Aldridge · Answer

In my experience, if the HOA policy has exterior/structure/roof covered usually a "condo policy" that covers drywall-in is what you'll need.    Your tenants should get renters insurance to cover their personal property.  You may/may not want a little personal property on your policy too to cover appliances and such...up to you.

Chris T. · Answer

Hi @Joel Kadlec

Assuming these condos are for rentals, you probably need a rental insurance / liability insurance for landlords. Your commercial lender may have specific insurance requirements as well.