Before you hand over the keys to your income property, it would be a good idea to protect your investment with landlord insurance. Protection from possible lawsuits would also be worthwhile since as a landlord, you could be held responsible for accidents or mishaps tenants have on your property. So maybe its time to take a closer look at rental property insurance.
It is possible that your existing homeowner’s property insurance can include a rental property as well, depending on who is renting your property. Most insurance companies require that one family only is occupying the rented dwelling. Other combinations of tenants such as a number of unrelated students can also be acceptable under certain conditions but should be discussed with an insurance professional. The downside of covering your rental property under your own homeowner’s policy is if a claim should be made regarding the rental property, this could negatively affect your homeowner’s insurance rates and availability.
Depending on the number of tenants and/or rental properties you have will determine the possible risks you may face and the protection needed.
If you rely on the monthly income from your tenants to make ends meet, rental property insurance can also provide a financial safety net for you! In this case, standard homeowner’s insurance would not cover you for lost income. If your rental unit becomes inhabitable due to a fire, for example, it can take months before the restoration is completed and the tenants move back in. Coverage to replace lost rental income could be crucial if your own income depends on it.
Your landlord insurance does not cover the possessions and belongings of your tenants, so it would be good advice to suggest they consider tenant’s insurance, especially since it is fairly inexpensive. If their furniture, clothes, TVs, computers and other belongings are ruined by fire or water damage they caused or another uninsured tenant caused, your insurance does not cover them. When your tenants start adding up the value of their possessions, they might want to look into getting their own renter’s insurance.
If you have any questions or would like a no obligation landlord insurance quote, please call Mitchell & Whale Insurance Brokers at 1-800-731-2228 or email us at email@example.com. We’d be happy to help!
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