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inGearX
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join:2000-06-11
New York

inGearX

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better have home owners insurance

Hi I have a condo that I legally rent out ..

I am just thinking what kind of insurance should I have on it

"home owners insurance"

..

"fire insurance"

what are some scenarios ..

like if my tenant slips and falls they can sue me?

let's discuss..

thank you..

stevek1949
We're not in Kansas anymore
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join:2002-11-13
Virginia Beach, VA

stevek1949

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This is a question for your insurance agent. I own a condo, but do not rent it out. Basically, you should carry fire and liability insurance, and casualty insurance on the physical building. I do not know if your condo association covers the outside walls of the unit, but mine does not. I am liable for any hard items within the unit, such as appliances, electrical and plumbing.

The renter should carry renters insurance on their property within the unit, also liability insurance to cover themselves in case of an accident. Many unit owners make this a requirement of the lease.

My insurance also covers any assessment that may be placed on the unit for improvements or such.

The laws in New York may be different. I suggest contacting an insurance agent as I am not one.
rody_44
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Quakertown, PA

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Im guessing homeowners insurance covers you no matter who sues you.

Energystream
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Ridgewood, NY

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If it is not a primary residence you likely need Landlord insurance. Tailored to investment properties, and usually more money. Before moving away from Homeowners, check if they cover renting out the condo.

May want to look at getting an umbrella policy to increase your liability coverage.

I just had to change over for my investment property, only reason it is fresh in my head.
harald
join:2010-10-22
Columbus, OH

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Your renter definitely needs insurance. Let's say there is water damage because the tenant let a sink overflow. You file a claim against your insurance, they pay, then they seek reimbursement from the tenant, who is not an insured under your policy. Been there, done that.

Call your agent.
tcope
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Sandy, UT

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As mentioned, you need to discuss coverage with an agent. A fire or dwelling policy would address damage caused to the rental property. A homeowners policy on the home you live in would most likely cover you for liability at the rental property but you'd need to review the policy and/or speak to an agent about this.

I'd _highly_ recommend requiring your renters to have renters insurance. However, there is no way of known if they are maintaining that policy. I'd certainly initially ask for confirmation that they had renters insurance. You could ask to be listed as an Additional Insured under that policy. However, you'd want to make sure this did not exclude you from making a 3rd party claim under that same policy (that is, if the renter burned down your home that you'd still be able to collect from their liability policy directly). As an Additional Insured you'd be notified if/when the policy cancelled.

These are some reasons's why you need a _good_ agent.

what the
join:2014-06-28
usa

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Tell them to get "Renters Insurance" it's super cheap.
"Home Owners Insurance" with renters coverage against damages and is something you better have on your condo as renters can surely destroy an apartment (condo) in no time.

natedj
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This is an interesting question. I've always thought that if you rent out your residence that the insurance rate would be lower since you'll be insuring just the home itself and not your personal possession. Am I wrong on that?
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Pher9999
join:2011-07-06
Saucier, MS

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Re: better have home owners insurance

From my basic understanding of this, when we looked at renting out our house. insurance would have gone up to cover liability and such, but doesn't cover the renter's items. Where as it usually can cover your stuff. Renter's insurance covers their items.

In the end call your insurance company and ask. They all have different requirements.

leibold
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There are certain coverages that you should definitely add as riders/endorsements to your existing homeowners policy or by alternatively switching to a policy that is tailored towards rental properties.
The most important thing to look for is to protect yourself from any liability against you arising out of the lease agreement.
This should cover any acts (or omissions) of your tenant(s) for which a third party may hold you as homeowner responsible. It should also cover your responsibility to provide a safe place to live for your tenant during the term of the rental or lease agreement should the condo become non-inhabitable for any reason.

There are several ways to deal with your responsibility for your tenants belongings. Requiring the tenant to carry renters insurance is a popular but not foolproof option. It is worth considering:
- buying a renters policy for the tenant and include the cost for it in the rent.
- including coverage for the tenants belongings with your own policy, perhaps on a secondary basis to keep the cost for that coverage down.

In most cases it will be more cost effective to purchase an umbrella liability coverage then to put high liability limits on specific coverages. Generally the umbrella policy will tell you the minimum liability you need to have on all your other insurance coverages (car, home, ...) and the umbrella policy will take effect once a claim exceeds the liability limits of the specific policy.

If you depend on the income of the rental property there are optional coverages available that would reimburse you for the loss of rent in a covered scenario. You will have to weigh the cost of such coverage against the likelihood of such an event occurring and you also need to carefully look at the limitations of such coverage (be sure that it covers at least the period of time that it takes in your area to evict a non-paying tenant). It will definitely not cover the inability to find new tenants within a reasonable period of time.

Other optional insurance coverage exists for the expenses related to maintaining your condo and the included appliances in safe and working condition.

Some of your risk exposure comes directly out of the language of the lease/rental agreement and therefore it may be best to have a lawyer draft it instead of relying on some boilerplate agreement found on the Internet. Other liabilities as landlord come from state and local laws and regulations and the best source of information will be an experienced insurance agent in your own local area.

robbin
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I keep seeing homeowner's policy being discussed. I can't comment on other states, but here in Texas if you are renting your property a homeowner's policy may not provide coverage. A homeowners policy is for owner occupied property only here. What is needed is a rental dwelling policy. At least that is what State Farm calls it.

Personally I don't see any reason for a landlord to require the tenant to maintain renter's insurance. I think that is too intrusive into the tenant's personal affairs.

Pher9999
join:2011-07-06
Saucier, MS

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When I was doing Apt living, I had to carry Renter's insurance when i got my 20 gallon aquarium. plus it helps cover my items if something was to happen to the building. When I bought a home, I made sure my homeowner insurance covered personal property inside the home too. Such as Computers, electronics and clothes.

stevek1949
We're not in Kansas anymore
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said by robbin:

Personally I don't see any reason for a landlord to require the tenant to maintain renter's insurance. I think that is too intrusive into the tenant's personal affairs.

If a neighbors apartment has a fire and causes damage to your apartment, and if the neighbor does not have insurance, your insurance would come into play to pay for your personal items. This happens all of the time with apartment building fires.

what the
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said by natedj:

I've always thought that if you rent out your residence that the insurance rate would be lower since you'll be insuring just the home

But then again if he has to tell the insurance company he is going to be renting out the condo the condo now becomes a business.

robbin
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said by stevek1949:

If a neighbors apartment has a fire and causes damage to your apartment, and if the neighbor does not have insurance, your insurance would come into play to pay for your personal items.

Let's make sure that everyone understands what I said. As a landlord with a good legal lease, I see no reason to require the tenant to have renters insurance to protect themselves or their personal property. That is totally their decision. Yes, if they have something like an aquarium or a dangerous dog they will be required to have insurance but that is not part of a normal lease. My lease does recommend that they carry insurance but it does not demand it. Normally my rental dwelling insurance is all I need to protect my property and myself (and maybe an umbrella to increase liability).

stevek1949
We're not in Kansas anymore
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Virginia Beach, VA

stevek1949

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If you are renting a single family dwelling, I would agree. But if multiple family, where they may not be in control of the situation, I can understand the LL requiring it to protect the other tenants.

bmilone2
join:2001-01-26
Mays Landing, NJ

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Your State may be different but in NJ you want an HO6 policy for a condo property (regular homeowners is an HO3). That covers your interior, but will not cover any of the tenants property if you have it rented. Always suggest a tenant obtain renters insurance.
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Mr Matt
join:2008-01-29
Eustis, FL

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Re: better have home owners insurance

said by robbin:

I see no reason to require the tenant to have renters insurance to protect themselves or their personal property.

You want the tenant to at least have liability insurance. That way if one of the tenants visitors slips and falls, the visitor will go after the tenants insurance company first, rather than you or your insurance company. Check with your rental agent to determine what liability limits are customary in your market.
tcope
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said by robbin:

Let's make sure that everyone understands what I said. As a landlord with a good legal lease, I see no reason to require the tenant to have renters insurance to protect themselves or their personal property. That is totally their decision. Yes, if they have something like an aquarium or a dangerous dog they will be required to have insurance but that is not part of a normal lease. My lease does recommend that they carry insurance but it does not demand it. Normally my rental dwelling insurance is all I need to protect my property and myself (and maybe an umbrella to increase liability).

So you think it's fine that the renter can burn down the OP's home and just walk away? All the damage may not be covered by the OP's insurance and there is also a deductible amount. I don't see this as obtrusive at all... it's been done for hundreds of years. The state requires people to have insurance to drive on public roads, your mortgage company requires insurance on the home and your car lien holder requires insurance on your car. Providing first party coverage is only part of a renters policy. What is being talked about here is the liability portion of the renters policy.

what the
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I know, how about just putting a clause in the lease stating that if the renter does not insure their own property you are not responsible for any damages to their belongings.
Once they sign it they can't sue for damages as they agreed before moving in that they
most likely will get renters insurance.
Kearnstd
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I would honestly consult with your insurance carrier, Every state has its own legal ins and outs for renting and you have to step carefully.

I imagine you can require having renters insurance as well in the contract just as a car company can require insuring a leased car.

And of course check in with your city for rules and regulations about rentals, If you are in NYC I know they are pretty strict.
graniterock
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Definately make it a condition of the lease that you have the right to ask for proof of whatever insurance you want them to have. The number of renters that are told to get insurance but don't is higher than it should be.

what the
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what the

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They can just sign up for a month, show you the papers, then drop the insurance, why they would is beyond me, it's so cheap!

Anonymous_
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apparently in this state I'm not liable if someone breaks in a wreaks the place , sets it on fire etc...

in this state the law favors the Tenant

IowaCowboy
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In Massachusetts you cannot refuse to rent to people that receive certain forms of assistance but you cannot garnish those forms of assistance should they torch your property or their pit bull (despite the no pets clause) mauls a 2-year old and you get sued over the incident. The ambulance chasing lawyers tend to go after deep pockets and in the case of public assistance tenants with a dangerous pit bull it's going to be the landlord.

You can try evicting problem tenants but it can be several months or more before you get rid of them. Some states favor landlords, many others favor tenants, which is why rents are unaffordable. Tenants destroy units, landlord loses money, and has to pass it on to the next tenant so that drives up housing costs for everyone. You should seriously talk to an insurance agent about protecting the property.

And my advice about becoming a landlord, research the market:
1. Do the laws favor the tenants or the landlords.
2. How easy or difficult is the eviction process.
3. What do you have to provide for tenants. The fewer things you have to provide (tenant responsibility) the better.
4. Last but not least, DO NOT rent in an area that mandates acceptance of certain vouchers, those programs create rules that tie the hands of landlords and the rules are a nightmare. They make you fix the slightest defects in your units when they inspect.
66860111 (banned)
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said by IowaCowboy:

In Massachusetts you cannot refuse to rent to people that receive certain forms of assistance but you cannot garnish those forms of assistance should they torch your property or their pit bull (despite the no pets clause) mauls a 2-year old and you get sued over the incident. The ambulance chasing lawyers tend to go after deep pockets and in the case of public assistance tenants with a dangerous pit bull it's going to be the landlord.

You can try evicting problem tenants but it can be several months or more before you get rid of them. Some states favor landlords, many others favor tenants, which is why rents are unaffordable. Tenants destroy units, landlord loses money, and has to pass it on to the next tenant so that drives up housing costs for everyone. You should seriously talk to an insurance agent about protecting the property.

And my advice about becoming a landlord, research the market:
1. Do the laws favor the tenants or the landlords.
2. How easy or difficult is the eviction process.
3. What do you have to provide for tenants. The fewer things you have to provide (tenant responsibility) the better.
4. Last but not least, DO NOT rent in an area that mandates acceptance of certain vouchers, those programs create rules that tie the hands of landlords and the rules are a nightmare. They make you fix the slightest defects in your units when they inspect.

What form of assistance do you think cannot be refused?

IowaCowboy
Lost in the Supermarket
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Springfield, MA

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In Massachusetts you cannot refuse rental subsidies like Section 8, or other housing vouchers or refuse to rent to tenants because they are on public assistance. It's in the state's anti discrimination laws. But trust me those programs are more problems than they are worth along with the tenants that come with them. Sure you get the nice tenants but you get the terrible tenants more often than not.

FYI. I pay the full rent. I don't have a housing subsidy. I'll tell you though that public housing complex nearby sure is a NIMBY.
66860111 (banned)
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said by IowaCowboy:

In Massachusetts you cannot refuse rental subsidies like Section 8, or other housing vouchers or refuse to rent to tenants because they are on public assistance. It's in the state's anti discrimination laws. But trust me those programs are more problems than they are worth along with the tenants that come with them. Sure you get the nice tenants but you get the terrible tenants more often than not.

FYI. I pay the full rent. I don't have a housing subsidy. I'll tell you though that public housing complex nearby sure is a NIMBY.

Any good landlord requires a credit check so you can deny them based on that. It's super easy to deny someone as a landlord in MA. *Signed a MA landlord*

FYI: I've yet to see a 'nice' tenant from section 8. I've had (4) section 8 tenants over the last few years. Every single one of them had issues.