First off – I am way past due for a post. It’s amazing how time gets away from you. I have had a lot of interesting scenarios worthy of discussion over the last year, but have just not made time to write about them. So with out further adieu…
I have an existing client from Appleton, WI who recently purchased a condo in the area. However, he already has a beautiful home in Neenah, WI, and was not planning to live in the condo himself. He is actually renting the condo to his mother (also a customer) who will be selling her home in Greenville, WI and moving into the condo. So at the first glance, he would definitely need an HO6 policy (Condominium Owners Policy), but what about his mother? Does she need an HO4 (Renters Policy) ? Since he is now essentially a landlord, does he need more than a simple condo policy? Answer: YES!
For his mother, we simply submitted a change to her existing West Bend Mutual home and auto insurance package to remove her home insurance (HO3) and add the renters policy (HO4). In his case we worked with Acuity, where we currently had his home, auto, and umbrella, policies to add a condo policy. We also added coverage to the condo policy for “Condo Rented to Others”. The key here was to make sure we covered several potential gaps in the standard condo policy. Adding the ‘condo rented to others’ coverage addresses a potential gap in liability coverage that may have been excluded in the standard condo policy. And the condo policy does not extend liability or property coverage to the renter, so of course the renters insurance policy ensures that her interests are covered as well.
As always if you have questions about your coverage, you should contact your agent. If you don’t have an agent, or would like to switch agents, you can contact us!
Disclaimer: This post is intended for informational purposes and does not constitute a recommendation for insurance coverage. Everyone’s insurance needs are different, and you should consult with your insurance agent to ensure that you have the coverage you need.