Understanding Rental Property Insurance
Rental property insurance can also be referred to as landlord insurance. It covers the unique risks taken when a landlord rents out his or her home for a specific period. Some of the risks it covers include liability costs, loss of rental income for the landlord, and property damages. 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. Here, we will be delving into rental property insurance.
It is normal for you to find variances in different agencies’ rental property insurance covers. There are, however, some constant things. 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. You find that rental property insurance factors in the fact that there are tenants on the property and homeowners insurance does not.
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. You need to understand the kind of perils you are covered from because coverage only extends to the damages you have cover from. For example, you will only be paid if you take out a cover that covers the risk of fire and your property is damaged 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. If, for example, you left a lawnmower on the land which is subsequently destroyed by the peril you are insured against, you should ask for payment. However, do not assume that your insurer will automatically give this cover without asking.
Liability coverage is also part of rental property insurance. Liability coverage protects you from the medical and legal costs incurred from your tenant or any other person being injured while on your land. Rental property insurance is a must-have today if you are a landlord.