Sabrina knows she needs Houston renters insurance, but isn’t quite sure what kind of policy she needs. She asks,
I’m renting a condo in Houston and the owner wants me to have liability insurance. What kind of insurance do I need in a rented condo? Renters insurance? Condo insurance? Both?
Great question Sabrina. To answer it properly, we first need to look at what a condo is.
If I Rent A Condo, Do I Need Condo Insurance Or Renters Insurance?
Since the housing market bottomed out a few years back, there are more condos on the rental market than ever before. Condos come with a whole new set of rules, an association, and a special kind of insurance. Do you need it, or is a renters policy enough?
What Kind Of Insurance Do I Need In A Rented Condo?
What is a condo anyway? Generally speaking, it’s a deeded portion of a building with an association overseeing it that is responsible for maintenance of common areas and the building itself. Condo associations come in many forms and vary somewhat from state to state. However, most of them have one thing in common, they are responsible for the structure itself. While you pay for it in the condo fees that your landlord takes out of your rent, you’re not directly billed for the insurance the association carries on the building. That insurance policy is in place so that the building could be rebuilt in the event of a loss.
The condo owner should have an insurance policy in place to protect what’s called improvements and betterment’s. If there were to be a total loss, the condo association would rebuild the condo to either the sheet-rock or completion with builders grade materials, depending on the association. Anything beyond that is the unit owner’s responsibility. So the policy the condo owner has offers far less coverage on the structure, because it costs far less to rebuild since much of the work is already done.
What Kind Of Insurance Do I Need In A Rented Condo? Renters Insurance!
Renters insurance is designed to protect any tenant, regardless of condo associations or other odd situations. You need to insure your contents (personal property) and your liability to others, including the unit owner. That’s exactly what a renters insurance policy does. Unlike the owner’s policy, a renters policy is no different in a condo versus an apartment. For your situation, Houston renters insurance will satisfy your landlord’s requirements as well as cover your property.
Effective Coverage, the renters insurance experts, have experience in matching the right condo insurance and renters insurance policies in Houston to the needs of the resident. One call to (800)892-4308 can get your insurance up and running in minutes, or you can click above for a free online quote!