Rental Property Insurance on Townhome

[Chris Chappell]

I'm new to REI and I'm considering buying my first actual rental property. The property I'm considering is a townhome that has an HOA. On the MPLS it says the HOA covers Blanket Insurance as well as a few other things. So my question is would I still need to look into getting Rental Property Insurance for this property?

[John Mocker]

Chris,

In a Condo/COOP type of structure the Association owns most of the building but usually not all of it.  You may own the sheet rock on the walls, interior pipes & electrical, Kitchen cabinets, bathroom fixtures, etc. (called Improvements & Betterments in insurance speak or I&B's).   You need to see the Declarations of the Association to see what the boundaries of your unit are.   If you rent with any contents (furniture or appliances) provided you can insure them.  Also, you want to have Liability coverage for that rented unit.  There are some optional coverages you should consider if you do get the policy such as Loss Assessment, Personal injury, Water Backup, ...)  If you do not cover the property (I&B's or Contents) you may be able to extend the Liability from your homeowners policy.