As a condo unit owner, you can wonder if simply requiring tenants to purchase renters insurance would take care of any potential risk. Unfortunately, trying to save a little bit of money for yourself now may end up costing you more in the long run.
We want to make sure you’re informed, so let’s review the similarities and differences between condo and renters insurance.
After all…being informed is how you can get the greatest return on your property investment!
What Does Condo Insurance Cover?
In light of loss, condo insurance and a renters insurance policy share a few connections.
They both cover:
- Personal property
- Personal liability
- Additional living expenses
But they diverge in two important areas that both you as the condo owner and your renters need to be aware of.
Lacking from a renters policy are:
- Dwelling coverage
- Loss Assessment coverage
Why does this matter?
Dwelling coverage wraps the structure of the condo itself in an “invisible forcefield,” and combined with the HOA’s own policy, guarantees that damage isn’t ruinous.
When the shared common area or building exterior is affected, loss assessment takes care of your portion charged to all condo owners by the HOA.
Herein lies the biggest benefit that this type of insurance delivers. You want to be able to focus on keeping quality tenants inside the unit, providing regular rental income.
And not just keeping them there…but keeping them happy. Being pulled into disputes with the HOA over damage of any sort makes complete tenant satisfaction less of a reality.
How Much Condo Insurance Do I Need?
Okay, you have identified your need for dedicated insurance on the unit you own. But what level of security should you invest in?
Answering this question starts with reviewing (in depth) the HOA master policy. Normally they come in 3 varieties and fluctuate in terms of structural coverage for your condo’s interior.
- Single entity
- Bare walls
Worth noting, a policy that is all-in removes the necessity to include dwelling coverage in your condo insurance. Single entity is the most common HOA policy, and bare walls offers the least amount of structural protection.
Armed with this knowledge, you can safely request the perfect amount for your unit. When you talk with an insurance agent, their expertise includes filling in any and all gaps left by a HOA policy.
Be aware that your HOA is responsible for the overall health of the condominium, and that includes:
- Surrounding land
- All common areas
- Exterior structure of the building
An expectation of their upkeep is normal, and if they aren’t included…be very wary of purchasing a unit there until you discover their reasoning behind it.
Condo Insurance and Insurance by Castle
A condo insurance agent that understands the business better than most, Insurance By Castle has been providing insurance in Redwood City, San Mateo, and surrounding areas throughout California for over 30 years!
Ours is a name that’s trusted and backed by countless positive reviews and operated independently of insurance providers, allowing us to shop around and secure the most affordable rates for our clients.
Call (650) 364-3664 today or request a condo insurance quote online. We can create a customized policy for you that includes every aspect necessary to instill the confidence that your investment is well protected.