Author Topic: Is my liability policy up to snuff?  (Read 980 times)

thedayisbrave

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Is my liability policy up to snuff?
« on: November 16, 2014, 01:58:30 PM »
The premium on my insurance policy for my rental is $109/yr.  Now that I think about it, that seems insanely low, so I want to make sure I'm adequately covered.  It's a 4bd/4ba condo, so the HOA takes care of the roof, exterior, etc. and essentially all I'm insuring is the interior.  The policy is through my LLC.

Currently the coverage according to the statement is: A-Building: 2000, B-Personal Property: 2000, C-Rent Loss: Act Loss?, D-Loss Ases: 1000 (no idea what this means), L-Business Liability: 500000, M-Med/Personal:5000, and General Aggregate: 1000000.

"Personal property" is limited to the appliances and HVAC, but I have a home warranty on this so I'm likely covered... in fact I may be double covered.  Would it be worth it to drop the home warranty next year? I had a 2K HVAC replacement shortly after purchasing the rental so I think I've been a bit shell shocked from that (though I've always had adequate reserves to cover it).

Anyway, would be so grateful if any insurance experts could chime in.  Thanks!

ETA: Property worth about $105K-$110K.
« Last Edit: November 16, 2014, 02:02:15 PM by thedayisbrave »

Another Reader

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Re: Is my liability policy up to snuff?
« Reply #1 on: November 19, 2014, 11:47:51 AM »
The structure insurance is probably held by the HOA and the cost is in the dues.  Check the documents to verify the structure is covered. D is probably for a special assessment for a loss by the HOA. 

If a tenant slips and falls down the interior stairs, what do you think your potential liability would be?  Discuss the adequacy of your liability insurance with the insurance agent with that in mind.

Insuring the personal property is for loss due to fire or theft and similar risks. The home warranty covers breakdowns.