If I have insurance thru my HOA on my condo & my new renter is getting renter's insurance, do I need any?

Question

I live in a different state than the condo I own. My personal (auto/home) insurance agent specified that, besides the Homeowner's Policy that covers the condo, the renter should get "renter's insurance" with $300,000 liability.

I talked with a lawyer (from the state where the condo is located) and she said she'd have to look at the rental lease and the insurance policy, since the language dictates the terms.

Obviously, the renter doesn't have the renter's insurance yet as he hasn't moved in yet.

The language of the "Insurance" clause in the Residential Lease Agreement is as follows:

"TENANT is required to purchase renter's insurance. Landlord and Landlord's broker shall be named as an additional insured on any such policy. LANDLORD shall not be liable for any damage or injury to TENANT, or any other person, to any property occurring on the Premises or any part thereof, or in common areas thereof. TENANT agrees to indemnify, defend and hold LANDLORD harmless from any claims for damages. TENANT understands that LANDLORD's insurance does not cover TENANT's personal property. Even if it is not a requirement of this Agreement, TENANT understands that LANDLORD highly recommends that TENANT purchase renter's insurance."

Answer 1

Your insurance on your condo usually does not cover the structure itself, but your belongings inside. Part of your HOA fees fees every month go toward the insurance that the HOA has on the structures. You should not carry insurance, just the renter.

Answer 2

If you depend on other people to foot any bill, you are a fool.

Definitely consult a Real Estate Lawyer.

Ingrid

Answer 3

Your insurance covers your condo.  The renter should have insurance to cover his property.

Answer 4

JR4NOTAXES, Home insurance is actually very flexible. I'm not familiar with all the details of my policy, but my home insurance agent is always helpful. Try calling your agent or a agent in your town. http://www.usinsuranceadvisor.com/Home-I... They should be able to assist you.

Answer 5

.   Yes, you need "condo dwellers coverage".   The HOA rebuilds the outside walls.  THe tenants coverage replaces his belongings.  You need coverage to install countertops and sinks and toilets after a fire burns the building down.

Answer 6

You want to continue your insurance on your condo, but NOT as a homeowner.  Since you are renting it out, NOW you need business insurance for a landlord.  It's not the same as homeowners, when you reside in the property.

Meanwhile, you also want the renter to have renter's insurance to cover his own property, and ALSO to cover potential damage to other condo units caused through his negligence (Clothes washer flooding or similar.)