Author Topic: How much home insurance to purchase for rental unit?  (Read 1475 times)

ratdaydays

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How much home insurance to purchase for rental unit?
« on: August 15, 2017, 07:04:52 PM »
I bought a condo a few years ago and I am renting it out.  I purchased condo insurance through Geico, and I didn't really know how much insurance to buy; I just asked the customer service person how much to buy just to get it done.  Now I am looking at the policy and I think maybe I am underinsured.  I bought the condo for $265k.  My insurance policy cost $393 and includes the following coverage:
personal property $20k w $500 deductible
dwelling 40k w $500 deductible
loss of use 10k per occurrence
loss assessment 5k per occurence
personal liability 300k per occurence
medical payment 1k per person
includes personal property replacement cost
unit owner's rental to others
loss free credit

Is there a rule of thimb of how much coverage to get for each item? 

ixtap

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Re: How much home insurance to purchase for rental unit?
« Reply #1 on: August 15, 2017, 07:21:32 PM »
If you are renting it out, you will need to get landlord insurance, which will have separate rules.

tralfamadorian

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Re: How much home insurance to purchase for rental unit?
« Reply #2 on: August 15, 2017, 08:19:49 PM »
If you are renting it out, you will need to get landlord insurance, which will have separate rules.
+1

I ask my insurance for maximum coverage with the highest allowable deductible. 

patchyfacialhair

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Re: How much home insurance to purchase for rental unit?
« Reply #3 on: August 16, 2017, 12:06:32 PM »
make sure the liability is a high amount, it's sometimes a dollar or two per month for an obscenely high level of coverage like $1MM.

read your condo paperwork to understand what the hoa covers, then fill in the gaps with your policy. a good agent should be able to walk you through this

ratdaydays

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Re: How much home insurance to purchase for rental unit?
« Reply #4 on: August 16, 2017, 02:28:39 PM »
Thank you all for your replies.  I didn't realize there was a separate insurance called landlord insurance.  I did tell them I would be renting it out so there is a clause in my insurance that says "unit owner's rental to others". I will have to look into getting landlord insurance.