How a Rental Property Policy Helps Safeguard Your Valuable Income
- What if disaster strikes and your rental property becomes uninhabitable? Rental income coverage is an optional part of a policy and pays you the income you would otherwise lose due to a covered event. If your tenants have to move out, insurance could keep the rental income coming in for up to 12 months.
- Because of the variety of coverage available, landlords are often advised to carefully consider different options before buying a policy. Comprehensive provides coverage for all types of situations. In contrast, peril policies generally cover fewer types of damage and list only those losses that will be covered. As a property manager, you should not only consider possible property damages but also libel, slander, and discrimination.
What Does a Rental Property Policy Cover?
It covers damages to the structure, as well as damages from liability claims and lost rental income. This includes:
- Damages to your property
- Damages you could be legally obligated to pay
- Legal counsel and fees
Are There Discounts Available?
Yes. Just like with any policy, your insurer will reward you for a multitude of items, including:
Bundling – Carrying more than one policy with the same company, such as your home insurance, auto coverage and others
Paperless billing – Reduce your insurer’s admin costs by having a direct withdrawal for your premium
Pay in advance – Another way to reduce costs for your carrier by paying the whole premium upfront
Loyalty – Be rewarded for staying with the same company for a number of years
Be sure and ask your agent if you qualify for any of these or other discounts.
Find Affordable Landlord’s Insurance Online Today
Property owners and real estate investors and developers need financial protection for landlords to protect their investment. To find out more, give us a call at 800-777-5620, visit us online for a quote or simply stop by one of our convenient offices.
If You Have Questions, We Have Answers
While it isn’t required by law, it is highly recommended if you are renting a property to others and aren’t sharing the residence with a tenant. If not, you will be responsible for any losses or damage done to your property along with being held liable for accidents that happen to people on your property.
There aren’t any federal or state laws that require tenants to have renters insurance, but it is within your legal right to require it as part of a rental agreement as long as it is required for every tenant on the property. Renters coverage also helps your tenant recover losses and damage that happens within their unit without getting your policy involved. There are many cases where your policy won’t apply if it is tenant’s personal property or if they were held liable in an accident. It is generally a good idea that your tenants have a renters policy and you have a landlord policy in order to cover all bases. However, It is up to you whether or not you want to require your tenants to have renters coverage.