What Landlord Insurance May Cover

If you own a home that you rent out, your coverage needs will be different than a standard homeowners policy you buy for the home you live in. Learn about landlord insurance.

Items That Landlord Insurance May Cover:

• Your Actual House - Of course, you buy landlord insurance to cover the actual building that you lease out.
• Other Building and Structures on the Property - You will also need to cover other buildings on the property like a storage shed or garage.
• Personal Property You Own - Some personal property items that you leave on the property may also be covered. What belongs to you? For instance, if you rent out a home, you will probably not own the clothes washing machine, but you probably do own the built in dish washing machine. If a fire damages appliances, the tenant would have to replace their own property, but you would have to replace any property you own. To cover their own personal property, suggest (or force) your tenants to buy renters insurance.
• Liability Insurance In Case of Injury - You also need liability insurance in case anybody is hurt on your property. If a tree limb falls on a resident, they may be able to prove that you were negligent. Even if you took great care of your property, and are innocent, and insurance company can help defend you in a lawsuit.
• Loss of Rental Income - In case your property is damaged in a storm or fire, you will lose rental income while repairs are being made. The lease on the home cannot force a tenant to keep paying rent when they cannot live in the home. You can find loss of income insurance to replace that income. Again, encourage (or specify) that your tenant’s have renters insurance with a provision to provide them with relocation assistance. Otherwise, they may sue to have you provide them with another place to live.

Do not forget to consider landlord insurance premiums when you calculate how much rent you need to make a profit on your property. If the rate is $100 a month, than you will need to collect that much more money in rent every month.

2 ways to lower your home insurance premium

• Smoke detectors and anti-theft devices usually earn a discount. Consider upgrades and other safety features as well. You will make an investment now, but it can pay off in the long run. Besides, everything you can do to make your home and tenants safer will help secure your investment, and also free you from worry about particular liability claims.
• Raise the deductible, but be sure you can afford to pay it if you do need to make a claim. The difference in premium between a $500 deductible and a $1500 deductible can be hundreds of dollars every year.

Shop around for the best rates just like you do for other insurance. Our fast, safe, and free homeowners insurance quote forms make it fast, safe, and free to compare insurance.

– Posted in:

Landlord

– Tags:

home insurance, landlord insurance

– Bookmark:

Digg del.icio.us Reddit StumbleUpon