Getting property insurance is a practical decision. Also called landlord insurance, this insurance type specifically covers the risks associated with renting out your home or condo for a certain period. Such insurance typically covers property damage, liability costs, and loss of rental income. It is a protection against the financial risks springing out from the tenants living on your property. However, there’s more to rental property insurance than meets the eye.
In this article, we’ll go over what you need to know about rental property insurance and what it covers. Keep on reading to find out more.
- Dwelling coverage
In terms of dwelling coverage, rental property insurance is similar to a homeowner’s insurance. This means that it covers the physical damage to your dwelling, which pertains to the structure of the home or apartment itself. Take note, however, that the insurance covers the damage to your walls and roofing system, but not the personal items of your tenant. Damages that are caused by covered perils such as fire, lightning, or flood, among others, are also covered by the insurance.
- Personal property coverage
It’s best to differentiate rental property insurance to a renter’s insurance. Renter’s insurance, also known as the tenant’s insurance, covers the personal property of tenants inhabiting the property. On the other contrary, rental property insurance often includes coverage for items left in the house by the landlord. When shopping for rental property insurance, check if the property coverage is included in the standard policy. If it is, find out as to what extent it will cover your property.
- Liability coverage
Liability coverage usually protects you from the legal and medical costs associated with someone getting injured on your rental property. For instance, if your tenant or a visitor had an accident on your property, the rental property insurance comes into play. This insurance will cover the costs up to a certain policy limit.
- Rent loss coverage
Rent loss coverage is a type of protection against lost rent payments of your property. If the property you rent is uninhabitable due to a covered peril, then it will be covered as a form of rent guarantee insurance. A perfect example is when fire damage makes your apartment uninhabitable. This protection covers you for the rental payments that your tenants are no longer obligated to pay. It will generally extend up to a defined period, such as 12 months or so. Make sure that check your policy of the insurance before purchasing one to determine whether or not the rent loss coverage is included.
Rental property insurance varies from one policy to another. Generally, however, a typical policy covers the dwelling or structure of your property, contents of the property belonging to the landlord, liability coverage, and loss of rental income.
Know that its coverage is similar to that of homeowner’s insurance. Yet, it has its own unique attributes that the homeowners’ insurance lacks. Rental property insurance accounts for the added risk of having tenants in your property. This is the reason it makes sense to invest in such insurance for your property.
If you’re looking for an insurance broker in Henderson, NV to help you get the best rental property insurance policy, get in touch with us today! We’re happy to help.
