Hallandale, FL · Member since 2015 · 22 posts · 2 votes
Here is my situation - I own a 1 BDRM condo in a 10 stories building on 6th floor, the condo is under home owner association (HOA). The apprised price on my unit is app 140k, I'm planning to rent it out in a next month. My understanding is that I would need a landlord liablity insurance. Could some with more experience give some points on what to look for and what to avoid. Also would really appreciate information of what companies are offering landlord liability in around Broward / Dade counties who I can work with to get my insurance
Real Estate Investor · Lake Worth, FL · Member since 2009 · 263 posts · 92 votes
11y
What you need is a homeowners policy but you need to notify them that this will be a rental. The standard is $300,000.00 on the liability. Additionally if you have a windstorm mitigation inspection report or devices you can receive a discount on the premium.
Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes
11y
HOA will the exterior and common areas of the building. You need condo insurance (HO6 policy form) to cover the interior drywall and buildout (cabinets, flooring, etc). That policy should come with $300k liability included.
If you don't have a mortgage you could do a liability policy only and get higher limits up to $2million. One thing to remember is with condos one of the biggest liabilities is damage to your unit that spreads to other units (ie water leak).
A wind mitigation report may not do much for you because a 10 story building will be rated as superior construction with a reinforced concrete roof. A wind mit will not provide further discounts to you.
Feel free to message me any other questions you may have!
Hallandale, FL · Member since 2015 · 22 posts · 2 votes
11y
Thanks for heads up, so if tenant would slip / fall in lobby and have a medical claim that would be covered by HOA insurance ? but if tenant slip and fall inside unit itself that would be covered by Condo liability insurance? My concern other than things like water pipes breaking and damaging other units would be protecting myself from claims by tenant.
Thanks for heads up, so if tenant would slip / fall in lobby and have a medical claim that would be covered by HOA insurance ? but if tenant slip and fall inside unit itself that would be covered by Condo liability insurance? My concern other than things like water pipes breaking and damaging other units would be protecting myself from claims by tenant.
Is this make sense?
Mike,
You are correct. The liability coverage on your condo HO6 policy will pay for your defense costs and settlements up to the policy limit if someone were to sue you for damages incurred inside your unit. Typically policies max out at $300k liability cover but if you are high net worth we would encourage an umbrella policy of at least $1million.
Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes
11y
Renters liability coverage only covers the tenant. You should have your own landlord liability coverage to protect yourself. It is a good rule of thumb to mandate renters insurance in the lease -- good point Jacob!