We are talking about insurance for your Las Vegas rental property, and today we have Curt Bulloch from Bulloch Insurance Brokers joining us. Curt’s company specializes in helping property managers make sure they have the right insurance for their properties and their clients. We’re talking on this blog about the HOA master policy and the false sense of security an owner can get from having this policy. Does it really cover everything?
HOA Master Policy – What it Covers
A big myth in the world of insurance revolves around HOAs, and the townhomes and condos that are used as investment properties and rental properties. The HOA usually covers the outside of the structure, the common areas, and the walkways. There is very little coverage given to the inside of any unit.
Coverage for Specific Units
If there is coverage provided for the inside of the unit, it’s usually related to some of the building items. This is what they call a studs-in policy or a drywall-in policy. So, if you are renting out a condo or a townhome with an HOA policy, make sure you have a landlord policy as well so that your specific property is covered. That landlord policy must have specific coverages to insure the inside of the unit as well as a loss of rental income. You also want to have at least $1 million of coverage for liability, water back up coverage, theft coverage, discrimination coverage, protection against wrongful eviction claims and fair housing claims, and you want your name as the Las Vegas property manager to be included as an additional insured, not an additional interest.
Don’t think that your property is covered just because it’s part of an HOA and your membership in the HOA includes access to the master policy. If you have any questions about the HOA master policy, you can contact Curt at Bulloch Insurance Brokers. If you have questions about Las Vegas property management, please contact us at Blackbird Realty.