Rental Property Insurance Information
Rental property insurance, or landlord insurance, protects property owners who rent out a property or vacation home. Rental property insurance helps cover the costs resulting from a covered loss, such as an accident or other damaging event.
What is rental property insurance?
Renting out property can be a lucrative business, especially if you own several properties. While residents have certain responsibilities, it is the landlord’s job to protect the property. Rental property insurance covers buildings, fences, sheds and liability risks. Think of this coverage as a blanket that falls over the residents’ renters insurance. With both policies in force, you and your tenants are protected from various financial risks.
What can rental property insurance do for you?
Even though you may not live in your rental properties, you still need to provide a safe environment for your tenants. While rental fees cover regular maintenance, you may face larger restoration costs after a fire or severe storm. Rental property insurance can help pay for those repair bills.
Purchasing rental properties is a big investment. Like any business it is important to protect that investment from unforeseen events.
What Protection Does Landlord Insurance Provide?
If you rent out a property as a source of income, you need to have rental property insurance. A typical policy covers damage to your property’s structure and personal belongings, such as appliances or maintenance equipment kept on site, and offers liability protection for the legal or medical costs if a tenant or guest is injured on the property. It may also cover your loss of rental income if you’re unable to rent the property because of a covered loss.
Keep in mind that when you file a claim for property damage or loss, you first have to pay your policy deductible. A deductible is the amount you’re responsible for covering on a claim before your insurance kicks in to cover the loss.
Additional Coverages to Consider:
You can add several standard riders to your rental property insurance. These are often valuable additions to have and will save you money if you have a claim.
Additional construction expenses—This typically covers costs incurred when bringing a building up to code after it was damaged.
Emergency coverage—This typically helps cover some or all of the costs you incur to travel to a property and resolve an emergency issue, such as a leaking dishwasher.
Flood insurance—If your property is in a flood-prone zone, consider purchasing flood insurance, as your standard landlord policy may not provide coverage for losses due to flooding.
Guaranteed income insurance—This rider pays you if a tenant is short on rent—or doesn’t pay at all—so you don’t have to worry about lost income.
How Much Does Rental Property Insurance Cost?
Landlord policy costs vary but generally cost more than average homeowners insurance because rental properties carry more risk. Rental property insurance also offers more protection. The experienced agents at The Bob Putnam Agency can help you evaluate your property, looking at its construction, age and location, among other factors, to determine your policy cost.
Do I Need Rental Property Insurance if I Have Homeowners Insurance?
If you rent a property or home on a long-term basis, you probably need rental property insurance. If you rent on a short-term basis, like renting your home or a room in it every once in a while, you may be able to add short-term rental coverage to your homeowners insurance policy. We can help ensure you have the coverage you need in the event of a loss.
How We Can Help
Rental property insurance is essential if you’re a landlord and rent out properties. Ensuring you obtain the proper insurance for your property is necessary to protect your financial livelihood. The Bob Putnam Agency, founded in 1981, can help you with your property insurance needs. Call us at 607-397-1999 today to get started.