Learn About Rental Property Insurance
Rental property insurance is also known as landlord insurance. All property owners who rent out or plan to rent out their properties are encouraged to take a rental property insurance cover because it covers all potential risks taken when one rents out their property. Rental property insurance covers a lot of things, some of them being the potential loss of rental income, liability costs, and property damage. You need to look into getting a rental property insurance cover regardless of what type of landlord you are. There are risks associated with having tenants, which is why safeguarding yourself against them by taking out a rental property insurance cover is vital. In this article, we will be looking at what you need to know about this kind of insurance.
It is important to note that rental property insurance coverage ranges from one insurance agency to another. However, some things are constant. Some of the basic things you should expect to be covered from are loss of rental income, damage to the structure of your property and your belongings, and liability costs. 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. The main difference between the two is that rental property insurance accounts for the financial risks of having tenants and homeowners insurance does not.
Just like homeowners insurance, rental property insurance covers the physical damage to your property. When you have a dwelling coverage, it is important to note that the only things you will be protected from are damages to your property’s floors, walls, and roof, and not the items of your tenants. 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.
Though rental property insurance does not cover tenants’ belongings, it can cover the landlord’s property left onsite. You can ask for payment if, for example, you had a lawnmower that was destroyed on your property by the risk you are insured against. Ensure that you ask if your insurer gives this kind of coverage, and to what extent they do so.
Most insurers also offer liability coverage as part of the rental property insurance coverage. Liability coverage protects you from the medical and legal costs incurred from your tenant or any other person being injured while on your land. Make sure you get rental property insurance if you own a property you intend to rent out.