As a landlord, it’s important to understand the types of insurance to protect your home. Yet, not all rental property insurance policies provide the best protection.
Is your policy providing the right coverage? If you just rented your investment property, you should consider getting landlord house insurance.
Don’t know why you should get investment property insurance? We’ll tell you everything you need to know about rental home insurance.
Read on for your guide to start protecting your investment properties today!
What Is Rental Property Insurance?
Rental home insurance is an insurance policy that protects your investment property from damages. Most landlord house insurance covers any physical damages to your home due to fire, snow, lightning, wind, hail, or ice.
Certain policies even cover any personal property you leave for maintenance or tenant use. Appliances and lawnmowers are some examples of landlord property covered by these policies.
These coverages may vary on a location, carrier, and home basis. You should consult with an expert to learn about your options and get the best policy.
Keep in mind that your insurance policy won’t protect the tenant or their belongings. It’s recommended to include renter’s insurance as a condition in your lease contract. Asking tenants to get this coverage will protect their belongings and offer them some liability protection as well.
What Is the Right Investment Property Insurance Coverage?
The right insurance coverage will depend on your rental plans. How long will you lease your property?
If you’re planning on renting your home for an event, you may be better off getting a homeowner’s insurance policy. This type of coverage will also suffice if you’re going to live the property and only rent a room or a certain area.
When you own an apartment complex or building, you should consider getting property owners insurance instead. This policy will protect you if any injuries, crimes, or unexpected damages happen in your investment property.
Yet, investment property owners should always prioritize getting comprehensive coverage, which includes these three protections.
1. Liability Protection
Renter’s insurance covers certain liability from damages suffered in the home premises. Yet, landlords are responsible for any injuries and damages suffered by the tenants or visitors due to property maintenance issues. Landlord house insurance policies that provide liability protection will cover you in these cases.
2. Property Damage
This coverage will protect your property from any damages due to vandalism, natural disasters, or even reckless tenants. The events covered may vary on a carrier basis. Make sure to ask your insurance agent about the types of events covered by your policy.
3. Rental Default Insurance
If your property suffers damages that make it unsuitable to rent, this protection will provide temporary rental reimbursement. Termites, mold, and other types of infestations are examples of damages this protection may cover.
The Bottom Line
Understanding the basics of rental property insurance is a start to protect your investment property. It’s important to get insurance coverage that meets your rental plans. Are you going to lease the property for a long term or occasionally?
Depending on your situation, you may need a landlord house insurance or homeowner’s home insurance policy. You should consult with an insurance expert to get the best coverage to protect your investment property.
Want to learn more about protecting your property? Check out the rest of our blog for more insightful articles.