Landlords who lease out units in condominiums should invest in insurance for owners of rental condo units. Many owners of condos falsely assume that the dues they pay to their condo association additionally cover the costs of the insurance that they need when renting out their condos. While these individuals are paying for some coverage when they pay their condo association dues, the coverage that they are receiving provides no protection for the actual units that they own. Failing to invest cheap landlord insurance leaves these individuals at a huge risk for claims that could be financially devastating. It is imperative that these property owners discover how a policy that covers their rental unit will protect them from loss and help them to garner peace of mind. –Cheap Landlord Insurance
Coverage For The Building
The master policy that is supplied through the condo association covers only the foundation of the building itself. If a fire or other catastrophic event should occur, this policy will only cover the expenses of rebuilding the structure from the walls out. Those who do not posses insurance for rental condos will be left in a bind. This form of coverage pays insured individuals for the costs of rebuilding the actual condo unit from the walls inward. This will include the replacement of fixtures, drywall, counter tops, cabinets, flooring and all else that is part of the interior portion of the dwelling. Rebuilding a condo usually costs about $60 per each square foot. this will be paid out of your own pocket if you do not possess adequate cover.
If you rent furnished condos it is imperative that you provide cover for your furnishings. Even if no furniture is provided in your rental units you still stand to lose any appliances that you have supplied. Investing in cheap landlord insurance allows you to specify the amount of coverage that is necessary for protecting these personal items. This form of insurance, however, provides no cover for the property of your tenants. They will need renter’s insurance for that.
Many owners have no idea what they would do if their condo was rendered uninhabitable and yet the mortgage payment was still due. Most condo owners have a hard time covering this payment without the rental income that the condo generates. When the rental unit is determined to be a total loss and renovations are being made, your having cheap landlord insurance will enable you to recover your lost rents. With this money you can continue to make your mortgage payments on time even though no tenant is actually inhabiting the unit and paying rent. Without coverage, a huge financial problem could develop.
Owning rental properties can be quite profitable. People who do not take the time to secure cheap landlord insurance, however, stand to lose their income stream and develop numerous financial problems. You can speak with your current insurance company to learn more about the available policy options for rental units. Building a comprehensive plan for coverage that has sufficient coverage limits can help to provide your with the peace of mind that you need in order to conduct your business in confidence.