Own A Condo But Rent It Out?

Did you buy a condo a few years back as investment property and currently enjoy the residual income from renting it out?  Congratulations to you for getting in on the ground level of an investment opportunity early on in the birth of the condominium phenomenon.

Condo's, as they are affectionately termed, are a unique way of owning a home without the upkeep and hassles of traditional homeownership.  Let someone else mow the lawn and clean the gutters, you've got better things to do. Right?

It's the best of both worlds, a tax write off for your mortgage interest, a vacation spot for the family, a place to house the mother-in-law when she comes to visit or a rental income property and you don't have to be concerned with a thing...or do you?

You do attend those annual unit-owners meetings don't you?  They are important because that is where you will learn about which functions of the condo association could come back to bite you.   You do have some very important  aspects of ownership in that property that you need to be aware of.

 Let's take a look at the insurance implications of owning a condo

• What do your By-Laws say?  You need to know because that's the fine print that could hurt you later.
• What are the deductibles involved in the condo association insurance policy?  And, who will pay them?
• Does your association policy provide coverage for flood?  This is a big one because if your association does then your personal flood policy won't pay even though you have been making your payments faithfully.  You can't double dip.  Know before you buy and then keep an eye on it.
• Who will pay to replace the windows and doors, the sheet rock, paint and carpet and the bathroom and kitchen fixtures?

If these items are the responsibility of the unit-owner than it's important that you talk with an experienced, professional insurance agent to secure some top quality coverage to handle your top quality condo responsibilities.

If these items are the responsibility of the condo association, great!  Don't stop reading though, you aren't in the free and clear yet.  You still have a liability exposure and a need for some contents coverage (remember the stove and refrigerator?) , we will even throw in a little dwelling coverage to give your protection a boost.  You never know when the rules will change and we don't want to leave you hanging in the event of a claim.  Plus, that condo association policy deductible needs to be paid by someone.  Guess who...yup, you!

Call your agent today, be sure you have the proper coverage for your needs.  Even if you think you are fine and don't need any coverage...are you really the best one to make that decision?  Call a professional.  Quotes and advice are free and you just may make a life long friend of your insurance agent.  We hope to see you soon!