Owning a condo is often a great experience for many people, particularly if they want to make extra money renting it out. However, how does subletting your condo affect your insurance policy? Let us at David King Insurance Services LLC serving Coppell, TX help you understand this complex topic.
You May Need Extra Insurance
When you sublet or sublease your condo to someone else, you are well within your rights as an owner. However, if you move out of the facility and somewhere else, you’re in an exciting situation. Your policy will cover items within the condo that belong to you but not those of your subleaser.
And if your renter does anything to damage your condo, such as accidentally burning areas, you might be in a challenging situation. That’s because there’s a good chance that your policy might not cover this situation. It all depends on the nature of your policy and what you set it up to cover for your needs.
You must talk to your agent about this situation and seriously consider rental insurance to protect you and your renter. They will pay for the policy, not you, and their items will be covered. And your condo policy should help protect your belongings inside, as long as you are honest with your insurer and work to find a policy with a provision that covers you.
Need More Information?
The complexity of this situation is often frustrating for many people to understand and may require the help of a high-quality insurance company to manage appropriately. So if you’re still confused and unsure what kind of policy you need for your condo, please contact us at David King Insurance Services LLC right away to learn more. We’ll help provide significant policies for your Coppell, TX area condo.
Condo insurance (also known as HO6 insurance) is the type of coverage that protects condo units while providing both living expenses coverage if a condo becomes uninhabitable and personal liability coverage. Condo insurance policies are also called walls-in coverage because they protect individual units of condo owners. In contrast, a condo association’s master policy will cover the common areas of the building. David King Insurance Services LLC, serving Coppell, TX, has prepared a list of things covered by standard condo insurance:
- Building property. The unit itself, including fixtures and walls.
- Personal property. It includes electronics, furniture, clothing, and other movable objects and personal belongings. Condo insurance will pay for the replacement if they are damaged by a disaster listed in the policy or stolen.
- Personal liability. The purpose of this coverage is to protect you if someone is injured in your condo and decides to sue you.
- Loss of use. If your condo becomes uninhabitable, your insurance will cover hotel bills and other expenses. It is also known as Additional Living Expenses (ALE) or coverage D.
- Loss assessment. If your HOA surpasses the condo association’s master policy’s limits, all unit owners have to contribute some funds to make up the difference. If loss assessment is included in your condo insurance, this amount will be totally covered by your insurance company.
If you are a condo owner, condo insurance is must-have. It is important because your association’s policy does not provide you with personal liability if someone decides to sue you and does not cover your personal belongings. If you think of getting condo insurance to protect your property and yourself, David King Insurance Services LLC, serving Coppell, TX and the surrounding area, is ready to help you. Do not hesitate to give us a call to find out about the options available.