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Discussion Starter #1
Well, it seems that when I move out of my condo and rent it out later this month, AAA won't insure my condo with renters in it. So I have to get landlord insurance. Anyone have company suggestions? Good or bad experiences?

It doesn't seem like many companies offer this type of coverage. I know some of you out there have had to do this...

TIA!
 

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Well, it seems that when I move out of my condo and rent it out later this month, AAA won't insure my condo with renters in it. So I have to get landlord insurance. Anyone have company suggestions? Good or bad experiences?

It doesn't seem like many companies offer this type of coverage. I know some of you out there have had to do this...

TIA!
Give me a few minutes, I'll look up a couple that will work for you since you are in my area. This question is right up my alley. :D
 

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Cant you make the renters get renters insurance? I had to do that once and it was $220 a year I think... And it was from fidelity...
 

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Discussion Starter #4
Cant you make the renters get renters insurance? I had to do that once and it was $220 a year I think... And it was from fidelity...
Yeah, I thought about that, but we just signed a lease and I kinda feel bad about making her pay out for yet another expense when I had expected to cover it. I thought perhaps I would ask her to cover after the first year.

Plus, she's paying a premium on renting my place. Paying the couple hundred bucks to cover it as I had expected isn't going to hurt.
 

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Renter's insurance does not cover the landlord...

We use R. C. Fischer & Co. for many of our properties. I'm not 100% sure they do condos, but its worth a call to check. If they won't, then I'm certain they can tell you who to talk to.

Look at the Commercial Property Insurance area, because you are now using your condo as a commercial property (ie. not personal insurance like renter's / homeowners)
 

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I have landlord insurance through Allstate on the rentals I own. Of course, it depends on your market and the size of the property (or properties), but the price is very reasonable (between $300 and 400 annually).

Tom
 

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Well, it seems that when I move out of my condo and rent it out later this month, AAA won't insure my condo with renters in it. So I have to get landlord insurance. Anyone have company suggestions? Good or bad experiences?

It doesn't seem like many companies offer this type of coverage. I know some of you out there have had to do this...

TIA!
Dana,

renters should get their own renter's insurance. it would cover against things like theft, pipes bursting and damaging their property, etc. By buying renter's insurance for them seems to me to unnecessarily include you if there is a claim. Most leases that I have seen tells the tenant to get their own.

landlord's insurance, besides covering hazards, also protects against loss of rents if there was a problem.

Since you are a first time landlord, I would see if the local apartment owner's association has a legal dept to ask questions to. if so, it would be very worthwhile to join for the minimal cost, especially to have the peace of mind that any question regarding tenant-landlord law will be answered. also, they typically have monthly magazines that have cheaper skilled labor such as plumbers, electricians, etc geared towards landlords. they would also have the forms you may need, such as leases, 3 day notices to perform or quit, house rules, etc.

being a landlord is a lot of fun. it would be important to become familiar with the issues. I would recommend a book by nolo press- every landlord's legal guide.

Mark
 

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Of course, if all else fails, you know you can ask Pearl...


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Dana,

renters should get their own renter's insurance. it would cover against things like theft, pipes bursting and damaging their property, etc. By buying renter's insurance for them seems to me to unnecessarily include you if there is a claim. Most leases that I have seen tells the tenant to get their own.


Mark
Huh? :shrug: I have NEVER heard of this. Only reason to have the renter's insurance is if something is stolen, or if a pipe bursts and it damages your personal belongings. The burst pipe is the sole responsibility of the landlord to fix and repair in a prompt manner. I've never seen a lease requiring the tenant to have his own insurance. A deposit covers accidental damage to the house, and anything above that is usually settled in court.

A few years back a pipe backed up and dumped sewage into my apartment. The landlord had to dig a trench in the bedroom, repair the pipe, pay for my damaged personal belongings, and put me up in a hotel. A tenant is never responsible for that.
 

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Huh? :shrug: I have NEVER heard of this. Only reason to have the renter's insurance is if something is stolen, or if a pipe bursts and it damages your personal belongings. The burst pipe is the sole responsibility of the landlord to fix and repair in a prompt manner. I've never seen a lease requiring the tenant to have his own insurance. A deposit covers accidental damage to the house, and anything above that is usually settled in court.

A few years back a pipe backed up and dumped sewage into my apartment. The landlord had to dig a trench in the bedroom, repair the pipe, pay for my damaged personal belongings, and put me up in a hotel. A tenant is never responsible for that.

I agree with you. burst pipes is the responsibility of the landlord. however, damage to personal belongings from the burst pipes is the responsibility of the tenant, and that is why a lease usually strongly suggests getting renter's insurance. I have written 40 leases to commercial and residential tenants and all of my leases have this in them. there is normally no lawsuit because the lease will specify non-responsibility to personal belongings. I suppose if one can determine that the landlord was negligent, then there can be a case to sue for damages to personal belongings. however, it may be difficult to determine negligence when pipes burst. by the way, I am not an attorney.

Mark
 

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I agree with you. burst pipes is the responsibility of the landlord. however, damage to personal belongings from the burst pipes is the responsibility of the tenant, and that is why a lease usually strongly suggests getting renter's insurance. I have written 40 leases to commercial and residential tenants and all of my leases have this in them. there is normally no lawsuit because the lease will specify non-responsibility to personal belongings. I suppose if one can determine that the landlord was negligent, then there can be a case to sue for damages to personal belongings. however, it may be difficult to determine negligence when pipes burst. by the way, I am not an attorney.

Mark
I'm not one either. They paid out because it was determined it was negligence, it wasn't just a freak accident. I usually look at renter's insurance as a waste of money. It's pretty rare I'd ever need to use it.
 

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What are you looking to insure? :shrug:

As you (should) already know, the sdtructure, and liability are all a part of the ASSOCIATION's master policy. The only thing you, as a Condo owner need (well, and don't even NEED - it is your option) to insure in any case, are CONTENTS (and excess liability, if you wish to ELECT it). Unless you are providing the Condo to the new tennants, FURNISHED - then it is THEY who would either need, or elect to have RENTERS INSURANCE for themselves (or not - certainly not REQUIRED).

Only other possible exception would be if you were stuck being required to carry excess FLOOD insurance, because your association's master policy was insufficient, and was being required of you by your mortgage holder. I've seen this happen before.

Otherwise, I'm really not even sure what you are looking for, or why? :shrug:
 

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So the Association's master policy covers everything that occurs in and around every condo, regardless if they are being rented or not?

Personally, I'd talk to an insurance professional and CYA. The insurance he needs includes such things as people slipping and falling while in or around his condo. That is one of a property owner's biggest risks and its more common than you think especially if he is renting. Don't take a chance, make sure you carry insurance to protect you against people who like to take advantage of property owners (and/or when something bad actually does happen).
 

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Discussion Starter #17
Hey guys,

Thanks for all the replies!

The master policy covers the building only, but not any of the guts. That means cabinets, fixtures, floors, doors, etc. So if the building burned down they would reconstruct the box, but would still have to reconstruct an interior.

Also, the real kicker is as Mr. Know says is the liability. Say my tenant's niece is visiting and falls down the stairs and she feels like suing me. Or any plethora of situations in that vein... it is one of the main reasons why anyone has homeowner's insurance to begin with.

After some research and consideration, it sounds like a good idea for my tenant to have renter's insurance as well, because if she screws something up beyond the limits of her deposit, we wouldn't have to go to court for a settlement.

Again, thanks for the input. Keep it coming if you think of anything else!
 

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I'm an insurance professional and your situation perplexes me as it's so simple. There's a readily available endorsement with many companies that you can add to the policy and that will solve your problem. It's called Condo Unit-Owners' - Rented to Others (HO 17 33). That should fix your problem. A copy is attached for your reference.
 

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I'm an insurance professional and your situation perplexes me as it's so simple. There's a readily available endorsement with many companies that you can add to the policy and that will solve your problem. It's called Condo Unit-Owners' - Rented to Others (HO 17 33). That should fix your problem. A copy is attached for your reference.

Dana can get any kind of insurance they want, but this is not a landlord protector policy. it does not say it cover lost rents, for example. I had burst pipes from a freeze, and the tenant had to leave because it would take a while to redo the pipes, drywall, carpet, etc. My landlord protector policy covered the lost rents until the unit was completed. Of course, this policy also covers liabilty as well.


Mark
 

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After some research and consideration, it sounds like a good idea for my tenant to have renter's insurance as well, because if she screws something up beyond the limits of her deposit, we wouldn't have to go to court for a settlement.

you dont need to go to court for a settlement and wont use the renter's insurance to cover tenant caused damage. you would first just ask the tenant to come up with the difference. However, you should ensure that you have enough security deposit in the first place. FYI, move in for me is 1st month's rent plus 1 month security on approved credit. If their credit is not good, (I presume you checked their credit and references), then I may ask for another month of security or a co-applicant. If they have pets, I add $500 per pet. notice I say nothing of last month's rent. I call it security so it can be used for anything, including last month's rent. If you called it last month's rent, then you cannot use it for damage, to carpets, etc. The last month the tenant is in the unit, I dont let them use the security deposit for last month rent, in chase there is damage.

I also say co-applicant, not cosigner. Co-applicant is someone that is also named on the lease, so the tenant and the co-applicant are jointly and severally liable. a cosigner would be a person of last resort, and would be gone after if the tenant does not pay. it takes longer to get money this way.

If your lease says the tenant should have renter's insurance, this is a way to say that you already gave them notice to cover their own personal property, and that you are not responsible for their stuff. IF they ever come to you demanding to cover damage, you can just say that lease says you were supposed to get renter's insurance. why didn't you?

Mark
 
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