The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: ratdaydays on August 15, 2017, 07:04:52 PM
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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?
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If you are renting it out, you will need to get landlord insurance, which will have separate rules.
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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.
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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
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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.