3 Tips for Landlords to Determine Who is Responsible for Homeowners Insurance

A homeowner’s insurance is an insurance policy that a property owner signs up to cover the replacement value of the items in the home in cases of calamities. It will secure the chances of reimbursement of items that are lost due to tragedies.

In general, landlords have the responsibility to pay the homeowner’s insurance. However, not all parts of the property, such as furniture and equipment, are covered under the insurance policy. A homeowner’s policy only covers the premises of the property within the scope of the insurance coverage and not the personal belongings of the renter. Therefore, when dealing with claims about homeowner’s insurance, it is essential to set boundaries with your renters.

Here are three tips for landlords to clarify who is responsible for homeowner’s insurance.

Get a landlord’s insurance policy.

A landlord should also secure a landlord’s insurance policy on top of a homeowner’s insurance since the rental property functions as a type of business. A landlord’s insurance policy is a must specifically for those who rent out their homes partially or occasionally.

You can determine the living arrangement since it can affect the coverage of the landlord’s insurance policy. You can also customize short-term rental agreements depending on the number of units or studio you have for one property.

Landlords should encourage renters to secure a renter’s policy.

A renter should also secure a renter’s insurance policy so that you can draw the line between what is shouldered by the landlord and the renter. With such a policy, the renter’s own belongings, such as their furniture, gadgets, and equipment, will be protected.

Landlords can also add a condition to the renter’s agreement, especially if the contract is a long-term one. With a clear stipulation recommending tenants to acquire their own renter’s insurance policy, landlords will be absolved of the liability in case of loss of items that belong to the renter.

A landlord should have property management skills.

A property owner has many things to consider when it comes to property management, particularly maintenance activities. Some of the maintenance issues include problems in the water piping system, gas shut-offs, or other mechanical issues. Proper maintenance will prevent fire damage, flooding, and other tragic events, so it is best to conduct routine inspections every year. Inspections will allow you to detect signs of problems, enabling you to address them before they become worse or cause huge damages.

In Summary

Landlords have many responsibilities in managing their property and providing good customer service to their renters. On top of ensuring that the property is in top shape, landlords also must shoulder the homeowner’s insurance. Even so, landowners should not be responsible for everything that involves the property.

Renters have a shared responsibility to take care of the items inside the premises. As renters, they need to secure their own belongings in the event that they are damaged or destroyed. A renter should, therefore, acquire a renter’s insurance policy to claim reimbursements for the cost or property that is lost or damaged.

If you are looking for homeowners insurance in Las Vegas, Nevada, get in touch with us today! We’re happy to help.