Renting out a condo to a tenant can provide an additional stream of income. However, becoming a landlord also comes with potential challenges, including insurance implications. Does renting out a condo to a tenant affect your condo insurance? Let’s explore the details with Premier Insurance Agency in Detroit, MI.

Insurance When Renting a Condo to a Tenant

If you decide to rent your condo to a tenant, it’s important to understand the potential impact on your insurance coverage. Whether the rental is short-term or long-term, it may alter or even void certain aspects of your condo insurance policy. The specifics depend on your insurer and your policy terms.

Failing to notify your condo insurance provider about the rental could complicate the claims process if an issue arises. Transparency is key to avoiding unnecessary financial risks.

By informing your insurer that you’ve decided to rent out your condo, you can ensure your coverage is adjusted appropriately, giving you peace of mind.

Why Renting a Condo Changes Insurance

Condo insurance is designed to protect you, the condo owner. When you rent out the property, it is no longer occupied by the owner, which changes the risk profile of the property and may require modifications to your policy.

Renting a condo to a tenant increases the property’s potential risks, which is why coverage often needs to be updated. However, if the rental is a one-time occurrence or lasts only a day or two, the impact on your insurance policy may be minimal.

For extended rental periods, your policy will likely need to be modified to address the risks posed by tenants. In some cases, your insurer may offer the option to revise your policy to include rental activities, ensuring adequate coverage.

Get Your Quote Today

Premier Insurance Agency proudly serves Detroit, MI, and the surrounding areas. If you’re considering condo insurance or need guidance on coverage for rental properties, call us at 866-680-7283 for more information and a personalized quote.