Today I went over insurance coverage with a homeowner who leases her condo. Here is a brief summary of what is typically covered on a tenant occupied condominium policy (HO6).
Inside Structure – Floors, walls, fixtures, etc. This is covered under coverage A.
Contents – Any personal property
Loss of Rents – For covered causes
Liability – I recommend you include animal liability. Liability covers in case the tenant is liable for property damage or injury. Typically, the titled owner of the property is always liable, even if the unit is being leased and it is the tenant’s responsibility.
Animal Liability – This is sometimes optional, it can be either included or excluded (at times). I recommend you always have this coverage. Ask your insurance company which breeds are allowed (some breeds like pit-bulls are not allowed by the insurance company if you wish to be insured by them).
What is NOT covered?
Flood – Unless you purchase a flood policy.
Mold – Always excluded unless you purchase this coverage (very expensive)
Exterior Structure – Covered by the HOA master insurance policy.
A few recommendations:
If your tenant has a dog, ask what breed of dog it is. You should have a clause in the contract not allowing some breeds of dogs that may be notorious for being vicious. Some dogs the list usually not allowed by insurance companies are Rottweiler, Pit pulls, Doberman, German Shepard, and Akita.
Review the HOA master policy to make sure that anything not covered by your condominium insurance policy is covered by your HOA master policy.
These are only a few brief recommendations. Talk to your agent for further advice regarding any active condo insurance policy you may have. If you need further assistance, contact Jesus R. Olivares at firstname.lastname@example.org or by calling 512-454-7799. Get an instant home insurance quote.