{"id":9088,"date":"2019-01-21T21:29:18","date_gmt":"2019-01-21T13:29:18","guid":{"rendered":"https:\/\/leasing.dmcihomes.com\/?p=9088"},"modified":"2023-09-07T08:56:52","modified_gmt":"2023-09-07T00:56:52","slug":"landlord-guide-condo-insurance","status":"publish","type":"post","link":"https:\/\/leasing.dmcihomes.com\/blog\/landlord-guide-condo-insurance\/","title":{"rendered":"Condo Renting 101: A Landlord\u2019s Guide to Buying Condo Insurance"},"content":{"rendered":"

Regardless if it\u2019s short or long term, there\u2019s always a risk of your DMCI Homes condo unit getting damaged whenever you rent it out to someone. That\u2019s why new landlords like you should know the importance of condo insurance.<\/span><\/p>\n

Luckily, we\u2019re here to guide you to the perfect policy for your condo. But first, why exactly do you need a condo insurance if you\u2019re a landlord?<\/p>\n

To protect your condo unit from natural calamities or fire<\/h3>\n

Having insurance for your condo can prepare you for times when natural calamities like storms, floods, and fire occur and damage your property. Some policies will pay you enough to recover from the damages caused by such scenarios, while others can even cover the entire loss.<\/p>\n

Consider it a long-term investment that will ensure your business will last a long time or at least will give you the money to buy a new condo unit to rent out.<\/p>\n

Protection from loss due to theft and burglary<\/h3>\n

Be it a tenant or a real burglar, there will always be a chance that someone will steal from your condo unit, especially when you hand it over to a complete stranger.<\/p>\n

With the right insurance policy, landlords can get enough funds to replace certain items in your condo unit that have been stolen. Sure, you can\u2019t get back what\u2019s stolen from you in most cases, but at least you get enough money to get something better.<\/span><\/p>\n

Protection from property damage from tenants<\/h3>\n

Although there are written agreements and rights of tenants<\/a>, we can\u2019t control how the tenants move or what they do on a daily basis, especially if there are kids. If you have pre-installed fixtures or appliances in your condo, there is a chance that your tenant may break it. A landlord\u2019s insurance can cover property damage caused by the tenants of the rented property.<\/p>\n

It has liability insurance<\/h3>\n

There are <\/span>several factors<\/span><\/a> that you, as a landlord, can be held liable in the event your tenant gets injured in your rented property. As a landlord, it is your duty to maintain common areas and warn the tenants of hidden dangers which you are aware of. Not doing these things may be the direct cause of the tenant\u2019s injury. Incidents like this fall under \u201cnegligence,\u201d which means failure by the tenant to meet the standard of care.<\/span><\/p>\n

Aside from maintaining your rented property in its best state, landlords must avail insurance to cover any expenses and legal issues that may occur when an accident happens.<\/span><\/p>\n

It may cover the loss of income under certain circumstances<\/h3>\n

In the event that your condo is too damaged, say because of a fire or earthquake, your tenant is forced to leave. Your condo quickly becomes a liability financially as the income abruptly stops and because you\u2019ll have to spend a fortune to have it repaired if you don\u2019t have insurance.<\/span><\/p>\n

With a landlord\u2019s insurance, some policies cover times like this when your rented property loses its ability to generate income. But that\u2019s under certain circumstances, such as the above-mentioned examples. It\u2019s still a better option than having to start from scratch, right?<\/span><\/p>\n

Condo insurance coverage explained<\/h3>\n

Based on the reasons given, the landlord\u2019s insurance is used mainly to protect the rented property\u2019s owner. But to truly understand the \u201cwhy\u201d of purchasing such a policy for your rental property is a must, allow us to explain this condominium insurance coverage guide. According to <\/span>Investopedia.com<\/span><\/a>, there are three policy types for each kind of condo user.<\/span><\/p>\n

Condo insurance for the owner<\/h3>\n

Homeowners insurance is a policy designed to cover certain damages and losses from the condo owner\u2019s unit. This can even be extended to accidents that happen within their property. Naturally, any person who opts to buy a property must avail this plan so that banks will issue a mortgage.<\/p>\n

This policy usually covers incidents such as theft and burglary, acts of nature (flood, earthquake, typhoon, and fire), and personal liability. Having the right package can even extend to accidents that happened in your house, firefighting expense, debris removal, rental expense, and more.<\/p>\n

When you\u2019re about to purchase a policy, it is highly recommended that one should compare one policy to another, list down questions, and ask the insurance agent to break everything down. You can even hire a lawyer to clear everything for you.<\/p>\n

Even tenants should have insurance<\/h3>\n

Renting out a condo<\/span><\/a> doesn\u2019t excuse you from purchasing an insurance policy. After all, you\u2019ll be living in someone else\u2019s property. Having renter\u2019s insurance will save you the trouble of having to pay upfront or go to court when you break or damage something in a rented unit. It will also protect your personal belongings in case something happens to the property such as a flood or fire.<\/span><\/p>\n

Usually, a renter\u2019s insurance will cover three areas: personal possessions (as mentioned above), liability protection, and additional living expenses.<\/p>\n

You can opt for any of the two types of renter\u2019s insurance \u2013 actual cash value or replacement cost coverage. According to <\/span>Investopedia.com<\/span><\/a>, the former<\/span><\/p>\n

will include depreciation when claiming. The latter, on the other hand, will cost more, but you\u2019ll receive a larger payout.<\/span><\/p>\n

Landlords need insurance, too<\/h3>\n

Lastly, we talk about the landlord\u2019s insurance. This policy is pretty much the same as the homeowner\u2019s insurance but considers the fact that the property provides income for its owners. As such, it can be extended to cover the replacement of the property in case of a total loss and loss of rental income because of the damage.<\/p>\n

Most landlord\u2019s insurance offer liability for accidents that occur in the property. This may cover injuries, property damage, and more. It protects landlords like you and your property from lawsuits from renters and losing profit.<\/p>\n

Convinced already? You might be asking yourself where and how can you avail a landlord\u2019s insurance policy? Don\u2019t worry. We\u2019ve got you covered.<\/p>\n

Where can you get a landlord\u2019s insurance policy?<\/h3>\n

It\u2019s worthwhile to check on top insurance companies such as Sun Life of Canada (Philippines) Inc., Philippines AXA Life Insurance Corp., BPI-Philam Life Assurance Corp., Pru Life Insurance Corp of U.K., Manulife Philippines, and Insular Life Assurance Company, Ltd.<\/p>\n

You can also try their condo insurance coverage calculator to see which is the best policy for you. A sample quote by AXA shows that for a premium as low as Php1,200, your unit can be insured for up to Php1,000,000. On the other hand, request for their recommended condo insurance coverage and compare each of their policies. This will help you know how much your condo insurance will cost so you don\u2019t need a calculator.<\/p>\n

Having a landlord\u2019s insurance policy can sure save you from going broke. It\u2019s a must for those who want to make sure that they have a safety net for every scenario. Add some of the <\/span>industry known hacks for leasing<\/span><\/a>, and you\u2019ll be on your way to earning from your real estate investment.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Regardless if it\u2019s short or long term, there\u2019s always a risk of your DMCI Homes condo unit getting damaged whenever you rent it out to someone. That\u2019s why new landlords like you should know the importance of condo insurance. Luckily, we\u2019re here to guide you to the perfect policy for your condo. But first, why […]<\/p>\n","protected":false},"author":1,"featured_media":9243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,7],"tags":[],"class_list":["post-9088","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advice-and-tips","category-renting"],"_links":{"self":[{"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/posts\/9088","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/comments?post=9088"}],"version-history":[{"count":3,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/posts\/9088\/revisions"}],"predecessor-version":[{"id":15576,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/posts\/9088\/revisions\/15576"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/media?parent=9088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/categories?post=9088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/tags?post=9088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}