Top 5 Mistakes Condo Owners Make When Buying Condo Rental Insurance

Nate Jones, CPCU, ARM, CLCS, AU
4 days ago
2 min read

Owning a condo rental can be a lucrative investment—but choosing the wrong insurance coverage can lead to major financial headaches. Many condo owners make mistakes that leave their property underinsured or exposed to liability. Here are the top 5 mistakes to avoid when purchasing condo rental insurance.

1. Assuming the Condo Association Policy Covers Everything

Many owners think their condo association’s master policy will cover their unit. In reality, association insurance typically only covers:

Common areas like lobbies, pools, and gyms
Structural components of the building

It does not cover your personal belongings, tenant liability, or loss of rental income. Always review your association’s policy.

2. Choosing Too Low Liability Coverage

Liability coverage protects you if a tenant or guest is injured on your property. Many owners select minimal coverage to save money, but this can leave them vulnerable to lawsuits. Factors to consider:

Property value and rental frequency
Short-term rentals (like Airbnb) vs. long-term tenants
Personal assets at risk

3. Not Including Loss of Rental Income

If your condo becomes uninhabitable due to a covered loss, rental income can stop—but standard policies may not reimburse you. Ensure your policy includes loss of rental income coverage to avoid financial setbacks.