What insurance coverage do i need?

[Eric W.]

Im in the process of closing on my first rental property near Tampa. It is a townhouse and i will pay a monthly maintenance fee that will be placed in escrow and will cover the exterior of the building and the roof if it becomes damaged. So my question is what coverage will i need in the event that the tenant damages the inside of the townhouse? Also, other then liability coverage what other coverage would i need/should i get?
Thanks.

[Joe Bertolino]

Call the insurance agent for the condo/townhome association and find out exactly what their policy covers. It is likely a "studs out" or "walls out" policy which would make you responsible for fixtures, cabinets, flooring, etc. In that case you want an HO 6 with some building and property coverage for the fixtures, etc. You might want to place coverage with the same agent as he will know how to mesh the policies so you don't have any gaps. As Bill mentioned... have the tenant get a renters policy and request to be named as an additional insured with a 10 day notice of cancellation so you are notified if coverage lapses.