As a landlord, you are probably already aware of the importance of insurance, but insuring a rental property is different than insuring one’s primary, personal residence. With some time and research however, it is not difficult to understand.
When shopping for landlord coverage, it is important to remember that proper protection is an investment. There will always be opportunities to cut corners, but in doing so, you will only place yourself at risk. Build a relationship with your insurance agent. Ask questions, and make sure you feel comfortable with your coverage. It should be a source of comfort, not confusion.
Landlord policies typically cover three basic areas. Each area is adjustable to suit your needs. Take time to consider exactly what you need.
Property coverage is broken down into two parts:
The structure itself – If the dwelling is damaged, this coverage will pay for repairs. While there will be exclusions for certain causes of damage, individual policies vary.
Your personal belongings on the premises – Whether your rental property is furnished or there are certain items or objects that happen to remain on site, this coverage will protect your belongings. Once again, there are limits and exclusions, so make sure you understand your policy.
In the worst case, if you should be sued by a tenant for something relating to your ownership of the property, you will have a certain amount of liability protection. Legal fees alone can quickly add up. Liability limits are adjustable, so discuss your options and needs with your agent to ensure proper coverage.
Loss of Rent Coverage
Should your property be damaged by a covered loss to an extent that would prevent you from renting it out, this coverage replaces income typically provided by rent. Depending on your insurance provider, this may be an endorsement that would need to be added separately. As many landlords depend on rental properties as a significant source of income, understanding this coverage will provide immense peace of mind.
As a landlord, it is important to understand your insurance needs and coverages. Make sure you speak with your insurance agent with any questions or concerns you may have. At Keyrenter, we strive to help our landlords understand both the risks and rewards of renting out their homes. To learn more about responsibly renting out your property, call Keyrenter at (844)-KEY-RENT!