I know this is a basic question, excuse me, but I'm trying to figure out... What insurances would I need in place if I were to rent out a fully paid-off condo to someone? Does condo landlord insurance cover everything, or would I need it in addition to regular condo insurance? I'm aware that it's recommended the tenant also have renter's insurance, but I'm just trying to figure out my monthly costs in maintaining this rental first.
@Dakota McCure the landlord policy is what you would need. We did one yesterday and it was about $250 per year.
There can be 3 policies involved when renting a condo;
1) Condo Association policy - Covers the association's common areas as well as the Buildings shell (Purchased by the condo association)
2) Landlord Condo policy - Covers the interior of the unit against Tenant Liability claims and can extend Property coverage to the interior finishes & landlord owned furnishings, appliances, etc.
3) Tenants Renters policy - Covers Tenant Liability and Personal Property
You need a policy to cover the parts of the building you own, your loss of rents and your Liability. Typically that is a dwelling fire policy. Some companies also modify their Condo unit owners policy (Form Ho6) to cover a rented condo.
First thing I recommend is to review the Condo documents (bylaws and declarations) to get an idea of what you need to insure (look for the description of the unit to show the boundaries).
Once you know that seek quotes and have them quote:
1. Additions & Alterations (may be called differently in some companies) for the parts of the building you own. That could be the Sheetrocking, fixture, cabinets, etc.
2. Contents for the non-built in items you own (fridge, stove,...)
3. Loss of Rents. Make sure the limit is high enough to cover 12 mos. of rents
4. Liability (I recommend purchasing the max limit that is a available and considering an Umbrella policy for additional coverage
5. Loss Assessment. Covers assessments from the association to cover things that would have been a covered item on your policy.
Other coverage or options to consider:
1. other structures if you have a detached garage
2. personal Injury protection. Liability coverage for libel, slander, wrongful entry, ...
3. Equipment Breakdown
Make sure the agent understands the Condo situation (how the Master policy of the association interacts with your coverage. Good luck and feel free to PM me if you have questions on any of the above.