Rental property insurance is also known as landlord insurance. All property owners who rent out or plan to rent out their properties are encouraged to take a rental property insurance cover because it covers all potential risks taken when one rents out their property. Rental property insurance covers a lot of things, some of them being the potential loss of rental income, liability costs, and property damage. You need rental property insurance regardless of whether you are renting out a condo, a vacation home, investment property, or any kind of rental property. Rental property insurance acts as a safeguard for the financial risk you take by renting out your property. 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. Rental property insurance and homeowners’ insurance are not the same despite the many similarities. 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. You need to understand the kind of perils you are covered from because coverage only extends to the damages you have cover from. If you only insure your property against fire, then your insurer will not pay you if your property is damaged by water.
If you leave some of your belongings on your property and an insured against risk occurs, then you have the right to claim payment for your belongings because rental property insurance covers the landlord’s belongings. For example, you have the right to claim payment for tools left on the property and damaged by the insured against risk. 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.
Liability coverage is also part of rental property insurance. Liability coverage protects you from the medical and legal costs incurred from your tenant or any other person being injured while on your land. Make sure you get rental property insurance if you own a property you intend to rent out.