Rental property insurance is also known 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. Rental property insurance is recommended for all landlords regardless of the type of property you are renting out. 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. 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. Rental property insurance and homeowners’ insurance are not the same despite the many similarities. You find that rental property insurance factors in the fact that there are tenants on the property and homeowners insurance does not.
One of the similarities between the two is that both cover physical damage to the insured’s dwelling. 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.
It is important to note that rental property insurance will not cover tenant property but will cover all items belonging to the landlord that are on the property. For example, you have the right to claim payment for tools left on the property and damaged by the insured against risk. 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. If you are a landlord, protect yourself by getting rental property insurance.