Renting out a condo is an excellent way to generate passive income. However, it’s not without risks. A destructive tenant or a tenant who refuses to pay monthly rent could cost you thousands of dollars. That’s why screening potential tenants before signing a contract is wise. An Arlington, TX property management company can help you with this task, although you can do it without professional help. Another way to protect your investment is to purchase condo insurance.

What Does Condo Insurance Cover?

Condo insurance covers two main types of damage. The first type is damage caused by a natural disaster, such as a flood, fire, hail, wind, or snow. The second type is accidental tenant damage. For example, if your tenant’s child throws a ball in the house and breaks a window, your condo insurance should cover the damage. The same point applies if your tenant forgets a pot on the stove and inadvertently starts a kitchen fire.

Unfortunately, condo insurance policies don’t cover intentional tenant damage. For example, your insurance won’t compensate you if your tenant is angry about a potential eviction and decides to smash the doors and kitchen cupboards. You’ll need to either sue the tenant once they are out of the house or use the security deposit to fund the repair of your condo. 

Get Help from Rickey McGill Insurance Agency

Rickey McGill Insurance Agency has a track record of providing top-tier service to condo owners in and around Arlington, TX. Call us to learn more about condo insurance policy options or to get a policy quote. We’ll work with you to ensure your valuable investment has the insurance it needs to generate the long-term income you’re counting on.