Have you recently purchased a condominium? Are you excited about the ownership and can't wait to get started with it? Condominiums offer a wide range of benefits. Not only are they great for living, but they can also do good for rental property too. After purchasing a condo or during the process, you may have to look for insurance on the property. This guards against potential damages, especially if you're financing the property. This article explores what you need to know when talking to your broker about insurance policies.

Are You Renting It Out?

If you purchase a condominium with the sole intent of renting it out to make money, you'll need to secure a different type of policy known as Habitational insurance. Landlord insurance will cover you against certain pitfalls, the biggest being damaged to your actual rental. This could include inside and outside the building. It will also cover you against accidents, mother nature, or even your legal fees should you have to take a renter to court over fees and damages. Protecting yourself against loss is one of the most important things you can do. This goes for whether you're renting it out or not. But, if you are renting, you have a certain higher risk factor than if you were just renting.

Insurance To Protect Inside and Out Of The Property

Do you have assets inside or outside the property? You're going to want to protect against the loss, vandalism, and more. Insurance will provide this coverage and pay you back in the event something happens. Renters insurance will cover you against damages like a busted water line, theft, or anything else that happens inside your unit. Renters insurance doesn't cover the landlord. It covers the renter. Though you don't have to have renters insurance, it is advised that you do.

Personal Injury

What if someone has an accident while visiting you or is on your property? Insurance will cover their medical expenses. If you didn't have this type of insurance, you would have to pay for their medical care out of pocket. Is this something you can handle? Medical expenses add up quickly. Protecting yourself against these certain pitfalls is not only good for peace of mind but for your wallet.

Final Thoughts

Get appropriate coverage whether you're renting or a landlord. It can prevent devastation from happening, including draining your wallet for repairs, replacements, or even having to replace your entire building. If you're unsure how much coverage you need, talk to your broker.