So, I finally just rented out our condo, and the tenant moves in on the 22nd. I called my insurance brokerage, and she said they do not have any companies that cover condo insurance while renting out.
She said it is relatively new thing in Michigan and a lot of companies do not have policies for it yet. Any suggestions on who to go to, and how much I am looking at? My insurance that I am going to be cancelling was around $450 for the year.
I guess State Farm does, was able to get a quote for $100 a year with a $100,000 liabilty $155,000 for the dwelling, and $5,00 personal (appliances are staying)
Why $155K for the dwelling? How much will it cost you to replace everything that is not covered by the association master policy?
Check with your association’s insurance carrier to see what they will replace in the event of a catastrophic loss. You only need enough dwelling insurance to pick up where your association master policy leaves off. If the association’s master policy will restore the building to the same condition it was in when the builder delivered it to the first buyer, I am guessing that you will only need a dwelling coverage limit somewhere between $5K and $40K.
Contents –
If the personal is contents coverage, then $5k may be enough for an unfurnished property. When you say appliances are staying, I assume you are referring to the appliances that you bought and installed in the property such as washer/dryer. Have you done anything else since you bought the condo, such as upgrade the carpet? If so, then your contents coverage needs to include the carpet.
Liability –
$100K is not nearly enough. Suggest you get the maximum liability the insurer will write. State Farm should be able to give you $1 million in liability coverage for maybe $30 more than they would charge for $100K liability.
Rental loss –
For just a couple dollars more premium, you can get rental loss coverage in the event a covered loss costs you rental income. $5000 rental loss coverage is fairly cheap.
The policy you need is a condominium rental dwelling policy (probably an HO-6 policy). I can’t believe your insurance broker can’t find anyone to write this policy for you. All the national brands have this policy in their product line. State Farm is not the only insurer in the marketplace, but I have found them to be the least expensive in the areas served by State Farm.