What You Need to Know About Rental Property Insurance
Landlord insurance and rental property insurance are terms that are used interchangeably in the insurance industry. It covers the unique risks taken when a landlord rents out his or her home for a specific period. Property damages, loss of income for the landlord, and liability claims are some of the risks this kind of insurance covers. You need rental property insurance regardless of whether you are renting out a condo, a vacation home, investment property, or any kind of rental property. By taking out this insurance cover, you safeguard yourself against the financial risk of allowing tenants to live on your property. In this article, we will be looking at what you need to know about this kind of insurance.
You need to know that the degree of coverage of rental property insurance varies from one agency to the other. However, some things are constant. Most rental property insurance covers cover the structure of the dwelling, the possible loss of rental property, liability covers, and the landlord’s belongings within the property. You may find a lot of similarities between homeowners’ insurance and rental property insurance, but it is important to note that the two covers are different. Rental property insurance accounts for the added risk of having tenants in your property.
If you have a rental property insurance cover, then you do not have to worry about any physical damage to your property because this cover stands in when repairs are needed. With a dwelling coverage, repairs to your property’s walls, floors, and roof will be covered, but your tenants’ belongings will not be. It is important to note that your cover will only extend to the risks you have coverage from, and as such, you need to ask about them. What this means is that you cannot be insured against water and expect payment if the damage is caused by fire.
If you leave some of your belongings on your property and an insured against risk occurs, then you have the right to claim payment for your belongings because rental property insurance covers the landlord’s belongings. You can ask for payment if, for example, you had a lawnmower that was destroyed on your property by the risk you are insured against. Ensure that you ask if your insurer gives this kind of coverage, and to what extent they do so.
Most rental property insurance covers also have liability coverage. Liability coverage protects you from the medical and legal costs incurred from your tenant or any other person being injured while on your land. Make sure you get rental property insurance if you own a property you intend to rent out.