Landlord insurance and rental property insurance are terms that are used interchangeably in the insurance industry. It covers the unique risks taken when a landlord rents out his or her home for a specific period. Rental property insurance covers a lot of things, some of them being the potential loss of rental income, liability costs, and property damage. 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. This article aims to educate the reader about rental property insurance.
It is normal for you to find variances in different agencies’ rental property insurance covers. Some things, however, remain constant among most of them. These are the coverage for the loss of rental income, the structure of the property, liability costs, and the belongings of the landlord in the property. 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. You find that rental property insurance factors in the fact that there are tenants on the property and homeowners insurance does not.
If you have a rental property insurance cover, then you do not have to worry about any physical damage to your property because this cover stands in when repairs are needed. If you take up dwelling coverage, it is important to note that the cover will only take care of damage to the property itself, and not the tenants’ belongings. 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. If you only insure your property against fire, then your insurer will not pay you if your property is damaged by water.
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. 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. However, do not assume that your insurer will automatically give this cover without asking.
Most rental property insurance covers also have liability coverage. Liability insurance is vital because it covers the medical and legal costs accrued once a person is injured while on your property. Rental property insurance is a must-have today if you are a landlord.