View Full Version : Insurance Question

12-06-2013, 10:33 AM
We are considering purchasing a condo and have a few questions about insurance. From what we understand, we need a contents policy and the building has its own insurance. What does the building insurance actually cover? I haven't been able to get a copy of either to read. I'm pretty sure the insurer is Fatum or the Guardian Group (think they are the same now) and I think that's who we will use also.

Also if we rent out our apartment, do we need any liability insurance in case of a flood, tropical storm, or fire and our guests get injured or lose their belongings? Or even if they slip and fall or damage our belongings.

Just trying to do our homework and learn as much as possible before moving forward or even thinking of renting our apartment:)


12-07-2013, 04:56 AM
Hey Got Air,
You need to check with the condo to see if they have the rental liability insurrance you are looking for. Typically that is covered, however, each condo is different. In the US typically you will need interior coverage, but remember BONAIRE is not the USA, check with whomever the condo has their insurance with, they will be very quick to let you know what you need. Make sure the condo you are purchasing allows for seasonal rentals as well.

12-07-2013, 10:09 AM
Thanks Dee! I didn't think about whether they allowed seasonal rentals, great point! I guess because I see so many for rent that it appeared pretty customary/normal. I've never owned a condo but have several houses/rentals here in the USA so my knowledge is somewhat limited when I comes to condos. I've been doing a lot of research just so I know what to expect simply because Bonaire is not the USA and things are different:) Again, thanks for the response I was very helpful!

12-09-2013, 03:26 PM
Got Air -

You should start with the Homeowners Association (HoA) for the condo complex where you are buying. They will be able to tell you whether the HoA carries insurance for the entire building or complex or if that is the responsibility of the owner. Every condo complex is different so you need to talk to the President of the HoA to see how that complex handles insurance. IF (note the word "if") the HoA carries insurance it is normally to cover all perils (fire, storm, flood, hurricane, etc.) to the BUILDING. If the HoA says they have insurance, ask to see the policy.

If the HoA does carry insurance, it will be on the building ONLY, and you will still need to purchase your own insurance on the contents. Contents insurance on Bonaire is fairly expensive, so take a look at what is in the apartment and decide if you really need to insure it.

Liability suits from renters here are very rare, so you may want to carry liability insurance for yourself to cover you against renters. If the HoA carries a policy, liability insurance is normally part of that policy, although it may or may cover rental guests. You should be able to tell from reading the policy, or by talking to the insurance broker who sold the policy.

The possessions of guests who rent from you are not covered by your policy, and are the responsibility of the guest. The guests can easily be insured with a travel insurance policy.

Feel free to Private Message me if you have additional questions.

12-09-2013, 08:58 PM
You are welcome, I am am a Real Estate Broker in Virginia Beach and own a rental home on Bonaire in an HOA community. Read the fine print and also make sure you see what is not in print.

12-10-2013, 11:26 PM
Thanks Bob and Dee! Its sounding like I may not need my own insurance if the HoA is somewhat adequate. I'm learning that contents insurance is pretty steep in Bonaire. Still waiting for a quote, things are going pretty slow but that's the way it is so that's ok:) Dee, I'm trying get as much detail as possible like you recommended so I'm prepared and know what to expect:) Thanks again for the tips!