Quote:
Originally Posted by fundmark19
Considering rental insurance is dirt cheap I don't understand why noone gets it.
|
As a cautionary tale regarding insurance...
I've had two clients who bought in Canvas call me about insurance in the last couple of days. Even though we recommend that all condo owners get insurance, these owners felt that because they were renting out their units and the tenants would insure their own belongings, there was no need for them to get their own insurance.
Here's the probems with that..
Neither the tenant's insurance, nor the builing insurance covers any of the following:
1. Owner Improvements (i.e if you add hardwood floors, or upgrades)
2. Appliances
3. Lost Rental Income.
The worst is probably the last one. These owners will likely have to keep making mortgage payments even though they have no rental income coming in until the building can be rebuilt. If they can't make the payments the bank will come after them....
EDIT: Ooops mini-fata. I missed fundmark19's earlier post. Still the lack of coverage fro rental income is important to note...