What Type of Insurance Do I Need if Using My Condo as a Rental Property?

Understanding Condo Rental Insurance

Agents at The Policy Source can provide helpful information about the appropriate insurance coverage for condo owners in Austin, TX interested in turning their property into a rental unit.

Insurance for Privately Owned Rental Condominiums

No matter how well you plan to safeguard your investment in a condominium, you need to prepare for unforeseen situations when you decide to turn it into a rental property.

While you may have a homeowner’s policy in place, most policies do not cover rental property. For this reason, it is recommended, but not required, that you consider getting landlord insurance in Austin, TX. Landlord insurance is especially appropriate for long-term leases. The coverage provides added protection for property owners.

DP-3 Insurance Policy

When homeowners rent their condos to others in Texas, a DP-3 policy may be necessary. This insurance is designed to protect landlords who rent out their residential property rather than occupying it themselves. The DP-3 policy, also known as a Dwelling Fire Form 3, covers the appliances and furnishings that the landlord owns. Additionally, it covers the property structure, other structures, personal liability, and loss of rental income.

A DP-3 is considered an open peril policy, meaning your insurance covers all perils unless you specifically exclude them. Examples of open peril issues include floods, earthquakes, power failure, mold, and more.

If you plan to rent your condo for a short period, talk with one of our agents about the type of policy you need to protect yourself and your property.

Get in Touch

With more than 50 years of experience to draw on, you can feel secure in knowing that The Policy Source team will find the insurance coverage that best serves your needs. Contact us today!