Homeowners Insurance AND Landlord Insurance???

[Dhruva Patel]

Hello - I just bought my first investment property (a condo with an HOA) less than a month ago in Texas. With closing, I paid for 50% of the homeowner's insurance policy that cost $575 total. In addition, my realtor told me that I need a landlord policy since I will be renting out one of the bedrooms. My brother is living in the other bedroom. My question is do I need both? The condo was completely rebuilt in 2015. Can I go ahead and cancel the homeowner policy and save money there (It will be refunded to me after a $50 cancellation fee)? The landlord policy is already costing me an additional $300. I'm new to this and would like your input.

Thanks for your responses! :)

[Jason Bott]

@Dhruva Patel at a minimum, you need;

1). "non owner occupied" policy

2). property coverage, specifically "improvements and betterments" coverage in the amount it would cost you to rebuild the condo from the walls in. The HOA covers the structure. (Ask the HOA to view what their insurance covers and don't make any assumptions).

3) General Liability policy.  $1M

Some companies call it a "landlord policy", others call it a "rental property".  So don't get hung up on the name, just make sure it has the above 3 main components.

Cancel the home owners policy.  It does not provide you any protection if you do not live there.