Insurance Tips for Condo Owners Renting Out Units

Renting out a condo—whether as a long-term lease or a short-term vacation rental—can be a smart way to generate passive income. But it also comes with unique risks and responsibilities. Unlike single-family homes, condos involve shared spaces, HOA rules, and layered insurance policies. That’s why having the right insurance coverage is essential.

Whether you own a condo, townhome, duplex, triplex, or vacation rental, here are the top insurance tips for condo owners renting out their units—and how Wexford Insurance can help protect your investment.

1. Understand the HOA Master Policy

Most condo associations carry a master insurance policy that covers the building’s exterior and common areas like hallways, elevators, and roofs. However, this policy does not cover the interior of your unit or your liability as a landlord.

Before renting out your condo, review the HOA’s policy to understand what’s covered—and what’s not.

2. Get Condo Landlord Insurance

Standard condo insurance (HO-6) is designed for owner-occupied units. If you’re renting out your condo, you’ll need condo landlord insurance, which includes:

• Dwelling coverage for interior damage (walls, floors, fixtures)

• Liability protection if a tenant or guest is injured

• Loss of rental income if the unit becomes uninhabitable due to a covered event

This coverage is essential for long-term rentals and may be required by your mortgage lender.

Request a Condo Owners' Insurance Quote!

3. Consider Short-Term Rental Coverage

If you’re listing your condo on Airbnb or VRBO, you may need a commercial or vacation rental policy. These policies are tailored for short-term stays and offer broader liability and property protection.

Some condo associations restrict short-term rentals, so check your HOA’s bylaws before listing.

4. Require Renters Insurance

While your landlord policy protects your property and liability, it doesn’t cover your tenant’s belongings. Require tenants to carry renters' insurance to protect their personal items and provide liability coverage.

This reduces disputes and ensures both parties are financially protected.

5. Review Coverage Limits and Add-Ons

Condo landlord insurance policies vary by provider. Consider add-ons like:

• Water backup coverage

• Equipment breakdown protection

• Umbrella liability insurance for high-value properties

Work with your insurance agent to tailor coverage to your specific needs.

How Wexford Insurance Supports Condo Owners

At Wexford Insurance, we specialize in rental property coverage for:

• Condos and townhomes

• Short-term and long-term rentals

• Duplexes, triplexes, lake houses, and more

Our policies protect against property damage, liability claims, and loss of rental income, giving you peace of mind while you grow your rental business.

Request a Condo Owners' Insurance Quote!

Final Thoughts

Renting out a condo can be a profitable venture—but only if you’re properly insured. By understanding your HOA’s coverage, securing landlord insurance, and requiring renters' insurance, you can protect your property and income. Wexford Insurance is here to help you every step of the way. Contact now!

FAQs

Q: What’s the difference between condo insurance and landlord insurance?

A: Condo insurance covers owner-occupied units; landlord insurance is for rental properties and includes liability and income protection.

Q: Can I rent my condo on Airbnb?

A: It depends on your HOA’s rules. Some associations restrict or ban short-term rentals.

Q: Does landlord insurance cover tenant belongings?

A: No. Tenants need renters' insurance to protect their personal property.