Real Estate Professional · Dallas, TX · Member since 2016 · 9 posts · 1 vote
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.
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.
I would cancel the landlord policy and tell your Brother not to sue you :) he should take out a renters policy to cover his stuff . your home owners should cover you.
A condo that you live in is not really considered an investment property. LOL. You will need landlord insurance if you don't live on the property. Otherwise a good homeowners policy should suffice.
Thanks for the responses and sorry for the confusion. I do not live there. I rent out one of the rooms and my brother lives in the other. How does that change your responses?
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.
@Jason Bott Thank you so much for your response. I went on to cancel the homeowners policy and have a landlord policy that has general liability coverage and the property. Appreciate it! :)