Do you own a condominium that you rent to vacationers? Do you have condo rental insurance?
Condo for Rent
Do you own a condominium that you rent to vacationers? If you do or you are considering it, take a look at some important limitations in your condo insurance policy.
Most condominium insurance policies include a provision which states that, once the property is held for rental, the condo insurance policy no longer covers the personal property of the unit owner. Consider a unit owner in Orlando, Fla., who decides to hold his unit for rent for a few weeks during the winter to attract vacationing families. Once the unit is advertised for rent, he no longer has coverage for his personal items located within the unit if they are damaged. Thus, if ﬁre, vandalism, theft, or another event causes his furniture, decorations or electronics to be damaged, he must pay for the repairs.
Of further concern to unit owners is that most policies do not require that it actually be under a rental agreement; rather, the act of holding it for rent alone can trigger the provision.
Many condo insurance policy companies make it possible to amend the policy to close this gap for additional premium. If you own a unit in a condominium arrangement and are considering holding it for rent, call our service team today. We can help you ﬁnd appropriate insurance.