If you own a condo, you likely have condo insurance. Like home insurance, condo insurance protects your investment in the space that you own from things that can cause damage, such as fires. If you are looking to rent the unit out, you may be wondering if condo insurance covers a renter’s property the same as it would cover your property if you lived in the space. This is a question that we at George Ryan Jr. Insurance Group Inc in Bourbonnais, IL are frequently asked and would like to clarify.
Condo insurance will not cover a renter’s property. If you are renting the space out you will need a rental dwelling policy and your renter will need renter’s insurance.
Rental dwelling helps to protect the four walls and the floor and ceiling in your condo, but does not cover any of the belongings contained within the unit that are not permanent fixtures. This type of policy is typically a bit cheaper than condo insurance since it does not cover these belongings.
A renter’s insurance policy covers your renter’s property, fully protecting them against things like a fire in the condo or their property being burglarized. If the tenant does not have renter’s insurance, your policy, whether it be condo insurance or rental dwelling coverage, will not provide any assistance to them. As such, many people who rent out their condos or homes require renters to obtain a renter’s insurance policy as part of the lease terms to ensure all parties are properly covered and protected.
When you are looking to obtain either condo insurance or rental insurance, be sure to let George Ryan Jr. Insurance Group Inc. in Bourbonnais, IL help. We would love to help you find the right policy for your needs. Contact us today to set up an appointment to discuss your insurance needs.