Rental condo insurance

[suzy]

I purchased 2 investment condos recently and according to my realtor, I do not need to purchase insurance coverage for these condos since the condo fees already covers insurance for the building. As such, I haven`t purchased insurance yet. My tenants got their own insurance for their personal belongings. Do you still recommend that I get additional insurance for these condos and if so, which ones? Thank you.

 

[GarthChapman]

You will need to know what in the units is a part of the common area and what is yours in order to answer that question. That info should be available in the Condo docs somewhere. A call to the Condo Corp Board or Management firm should get you the answer.

Also note that improvements to the units are usually not covered by the Condo Corporation`s policy.

Hope that helps a bit,

 

[lanedry77]

and insurance that covers loss of rental income (in the case of a fire, for instance) would be something that the condo board`s insurance wouldn`t likely cover.


David.

 

[JeffSmith]

Further to what Garth had mentioned. The condo association will have insurance on the building, however the interior of your unit is your responsibility and your bank will most likey require proof of insurance. Your legal description will have a plan #. That plan will have your unit measurements and exact area. When confirming area statements for condos you can use the registered plans.

Jeff

 

[rbrander]

QUOTE (suzy @ Dec 3 2007, 05:33 PM) I purchased 2 investment condos recently and according to my realtor, I do not need to purchase insurance coverage for these condos since the condo fees already covers insurance for the building. As such, I haven`t purchased insurance yet. My tenants got their own insurance for their personal belongings. Do you still recommend that I get additional insurance for these condos and if so, which ones? Thank you.

Suzy: Bottom line, get the insurance coverage for your condo`s from your broker - about 18-20 dollars a month - for covering your assets in the condo as well as liability, medical, and income replacement. In the worst case, the tenant has a fire that requires 3 months of work to get the unit back and operational. This will cover the interiors, appliances, furnace, AC, washer/dryer, (you get the picture) and the condo will be responsible for the structure. The tenant covers their own property only. The policy covers your lost rent, rebuilds the unit, may cover tenant temporary lodging (this is a t`s & c`s thing), and your golden.
Cheers!

 

[GeoRawlins]

And Further to what the others have said, I`ll throw in my 2 cents.

If, say, your tenant allowed the kitchen sink to overflow and the water leaked through to an adjoining unit or the unit below and casued damage to that suite, you would have to pay for it. That is if you didn`t have the insurance. I carry insurance on my condo. I pay $212 per year. Cheap in my opinion. Get the insurance!
Best wishes,
geo

 

[PauletteMarsollier]

QUOTE (suzy @ Dec 3 2007, 03:33 PM) I purchased 2 investment condos recently and according to my realtor, I do not need to purchase insurance coverage for these condos since the condo fees already covers insurance for the building. As such, I haven`t purchased insurance yet. My tenants got their own insurance for their personal belongings. Do you still recommend that I get additional insurance for these condos and if so, which ones? Thank you.

 

[PauletteMarsollier]

Suzy,

You definitely need insurance as if you read the by-laws they normally indicate that the chattels (fridge, stove, dishwasher,etc) are the owners responsibility to maintain at all times. Sooo if they leak, burn, etc. you have a problem as you will not be covered. Also take out the insurance with the master insurer of the building of the common property. If anything goes wrong they won`t argue with you. Insurance is a deep topic and I have attended many seminars on it. Be sure that you are covered and I would have the tenant present his proof of insurance also for your file, the Board of Directors and your insurance company.

Paulette Marsollier

 

[bmittlefehldt]

QUOTE (suzy @ Dec 3 2007, 03:33 PM) I purchased 2 investment condos recently and according to my realtor, I do not need to purchase insurance coverage for these condos since the condo fees already covers insurance for the building. As such, I haven`t purchased insurance yet. My tenants got their own insurance for their personal belongings. Do you still recommend that I get additional insurance for these condos and if so, which ones? Thank you.You absolutely must purchase insurance. While it is possible that the building policy has what you need, the liability insurance will not cover you. If someone comes on to the policy, and is injured, you can be sure they will sue the condo association, the tenant and YOU. Insurance will provide you with a lawyer to defend the suit, and will pay out if you are found responsible. (of course, subject to exclusions)
bmittlefehldt

 

[jarrettvaughan]

Does anyone have a reccomondation for an excellent insurance broker in Red Deer?