Today I want to share some information regarding condominium insurance. Let’s assume you are purchasing a condo to rent to others, such as a condo at the beach. It’s important to know that once you rent or make your condo available for rental, your insurance changes.
For example, once your condo is made available for rent, you lose coverage for your personal property. This means items like furniture, electronics and decorations are no longer insured. Since condos often are rented furnished, this is a large gap that must be addressed before the damage happens. Coverage is also eliminated for attached structures (such as a detached garage or dock) if damaged once the condo is rented or made available for rent.
This practice also eliminates the personal liability coverage under your condo insurance policy, meaning if someone renting your condo injures someone else or their property and you are brought into the lawsuit, then your condo policy will not pay to defend you.
All hope is not lost. Most condo policies can be easily amended to close these significant coverage gaps. We can also help you evaluate how much your policy will pay you for lost rental income if your condo is damaged.
Call Ginger Carlon at 400-3530 or email firstname.lastname@example.org for more information.