What You Need to Know About Rental Property Insurance
Landlord insurance and rental property insurance are terms that are used interchangeably in the insurance industry. If you are a landlord, then you should consider taking out this cover as it covers all the risks taken when one rents out their condo or property. Some of the risks it covers include liability costs, loss of rental income for the landlord, and property damages. 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.
You need to know that the degree of coverage of rental property insurance varies from one agency to the other. There are, however, some constant things. 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.
One of the similarities between the two is that both cover physical damage to the insured’s dwelling. With a dwelling coverage, repairs to your property’s walls, floors, and roof will be covered, but your tenants’ belongings will not be. 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.
Though rental property insurance does not cover tenants’ belongings, it can cover the landlord’s property left onsite. If, for example, you left a lawnmower on the land which is subsequently destroyed by the peril you are insured against, you should ask for payment. Before you settle on an insurance agency, ensure that you ask if they give this kind of coverage, and if so, to what extent they give it because you may assume that they do only to be disappointed when the risk occurs.
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.
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