What is the best insurance coverage for the second home condo use for seasoanl rental?
January 20, 2010 by
Filed under condo insurance
The condo has flood insurance, but I was told to purchase the coveage, I guess liability inside my unit. What is the inexpensive and reasonable coverage?
since it is a second home,
check with your first home’s insurance company.
they usually give discounts and sometimes your items are covered under your first insurance
You NEED full liability insurance. The amount should be enough to protect your Assets. If some one hurts themeself at your rental property, there needs to be enough insurance, so that they do not come after your assets. If you have a standard (150/300 or 300/500) on that property, you might be able to get an umbrella to extent all of your coverages ( your primary as well) to a million or more. You also have to check with your insurer to make sure that the fact that this property is rented does not invalidate it for the coverage you are purchasing
The way most condo associations policies work is they cover the exterior walls and roof of the building. Interior walls are covered through an individual’s condo insurance policy. You will need to get a condo policy to cover liability and interior walls and if you have furniture and other personal property in the condo. Check with a local agent – http://www.findlocalinsurance.com about getting coverage for this.
Ok. Here’s how I’d do it:
1.) The condo itself would be covered under the master policy of the condo unitowners association.
2.) You can extend the liability coverage from your primary homeowner policy to cover the condo. I would suggest the max (100,000/300,000 or if your primary homeowner policy offers 1 mill.)
3.) Then add “contents coverage” for another location to your primary homeowner policy (you’ll have to figure out how much in contents you have on your furnished rental).
I really couldn’t tell you the cost because rates vary from state to state so contact a local independent insurance agent in your area for competitive quotes. He/she can also advise you of what will be necessary to suit your needs for your situation. Good luck!