I'm thinking about buying a condo in the Seattle-Tacoma area and renting it out. What sort of insurance do I need, beyond basic homeowners' insurance? What about liability in case someone hurts him or herself in the apartment (not due to any neglect on my part)? This would represent a big financial step for me. Any landlords or insurance professionals out there who can advise me? Thanks.
2006-07-12 07:51:17 · 4 answers · asked by mistersato 5 in Business & Finance ➔ Renting & Real Estate
Landlording is one of the most litigated professions in America. The first thing you need to do is to title the home in the name of a Limited Liability Company or revocable trust. Thus if there is a claim it can only be against the one asset. Most amatuer landlords title the rental home in their name and a lawsuit could tie up all your assets.
Step two is to get a landlord's policy and make sure that if the house is vacant for more than 30 days that you have a vacant house rider because most insurance companies void coverage if the house is vacant for more than 30 days. To better handle your liability get an umbrella policy for the Limited Liability Company that can cover your potential liability.
Good Luck
2006-07-12 08:03:09 · answer #1 · answered by teenriodoll 3 · 2⤊ 0⤋
It wouldn't hurt to have liability insurance and to require all of your tenants to show proof of home-owner's/renter's insurance. You also need insurance to protect the building, which is your investment after all. If anything happens to it, you'll still have to pay for it and that's where the building's insurance will come in to play. For more information, talk to an insurance rep you trust.
2006-07-12 07:57:44 · answer #2 · answered by quietwalker 5 · 0⤊ 0⤋
When you buy your policy you will be advised of all your options. Y ou can call most any insurance agent to get an appointment to discuss these issues. If they don't want to see you until you are buying a policy they aren't for you. We have 10 units and need to talk to our agent quite often so you want to make sure you have a good agent that cares.
2006-07-12 07:56:28 · answer #3 · answered by sassssy 5 · 0⤊ 0⤋
You don't need much more than that, but it would be nice if you suggest it to tenants. Renters insurance isn't expensive, maybe your insurance perosn could give you some businews cards to attach to the leases.
2006-07-12 07:56:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋