The Landlord’s Guide to Rental Property Insurance in 2022
Did you know that one in every twenty insured homes has a claim every year? The most common type of claim is the property damage claim. Property damages can result from wind, hail, water, fire, and lightning disasters. Rental property insurance protects the landlords from potential financial losses.
A tenant may proceed to sue the landlord or damage your rental property. In such a case, the rental property insurance will cover the expenses.
You must consider various factors when looking for home insurance for rental property. This article provides the ultimate landlord’s guide to rental property insurance in 2022.
What Does the Insurance for Rental Property Cover?
There are various options that your property rental insurance can provide coverage for. Property damage will cover the repairs on your building from accidents like fire, wind, and vandalism.
The other option is the liability protection cover. This caters to any medical or legal costs arising from a tenant injured or ill due to poor property maintenance.
Rental income coverage protects landlords from losses that may occur when the building is unlivable for repair and maintenance. It may also cover your operating costs if one of the tenants becomes unable to pay rent.
What Are the Exclusions?
It’s advisable to read the insurance policies to understand what your property rental insurance won’t cover. Your rental property insurance may not cover the tenant’s property and possessions.
In most cases, the insurance for rental property only protects assets and property owned by landlords. Encourage your tenants to buy renters insurance to safeguard their personal belongings.
Besides, rental property insurance will not cover any shared property. So, you should avoid living on the same property you’re renting out to tenants.
This applies even if your tenants live in another unit, room, or floor. Otherwise, you may not qualify for a landlord policy.
This implies that you’d need your homeowners’ coverage to protect the area of the property you want to rent out.
Lastly, rental property insurance won’t cover repairing or replacing appliances that break down due to wear and tear. You’ll need to go back into your pocket for the expenses.
You can only enjoy coverage if your home appliances are particularly covered in your home insurance for rental property. Besides, the damage must come from a covered loss.
Property Rental Insurance Cost
Usually, the rental property insurance will cost you 25% more than the homeowners’ insurance coverage for the same property.
Cheap insurance can result in reduced coverage limits and plentiful exclusions. Thus, it becomes very problematic for landlords when making a claim.
It’s advisable to prioritize the value of your property rental insurance coverage more than what it’ll cost you.
Rental Property Insurance Companies
Extensive market research will help you get the best rental property insurance company. It’s recommendable to buy your insurance cover from a professional and reputable company.
You can tell the reputation of an insurance company by reading google reviews online. You can also check the comments and feedback of other landlords from different social media channels.
Ensure that you read and understand the different insurance policies to make an informed decision.
Contact us to learn more ideas about rental property insurance for you.