Rental insurance for landlords is now considered a necessity to those that rent or lease their property. But, there’s a lot to be learned with this type of coverage.
What is Rental Insurance for Landlords?
Rental insurance for landlords, or “landlord insurance” is a special type of insurance that provides comprehensive coverage for those that own and rent out that property.
This could be through the means of a home, an apartment, a cabin, a condo, or similar type of structure. It aids in providing protection from financial-based loss that could stem from damages to rental property.
Examples of this damage could include a break-in, a fire, a flood, severe weather, and various types of natural disasters.
If your rental property becomes uninhabitable, this type of insurance will help in covering any type of loss of income that you may experience.
Rental Insurance Coverage for Property Owners
There are many types of rental insurance coverage available for property owners. The coverage options that you have will be based upon the company that you elect to work with, the options that you elect, as well as the area where your rental property is located.
The following outlines the types of coverage options that are most often chosen by property owners that rent or lease to others:
- Property Damage – This type of insurance covers both your rental property and the personal property that is on the rental property in the event that storms, theft, fire, vandalism, or damage from tenants occurs. In most instances, this coverage will cover your entire property.
- Liability – This type of coverage protects you – the property owner -from lawsuits and liability claims. For example, if someone gets hurt on your property or dies on your property, this could help you remain protected from paying medical expenses, the costs associated with a funeral, or other claims associated with bodily injury or death.
- Income Loss – This coverage aids in compensating you in the even your rental property becomes uninhabitable due to some type of loss. It is often referred to as “rental reimbursement”.
- Other Coverage Types -There are many other types of coverage that you may opt for when it comes to landlord insurance. These include natural disaster coverage, flood coverage, landlord contents, and even employer liability coverage.
Is Rental Insurance for Landlord Required by Law?
Handing over the keys to your home may not be an easy thing. However, you might be money conscious, trying to make ends meet, or save as much possible in this investment.
According to the law, rental insurance for landlords is not a requirement; but, failure to carry this type of insurance could result in massive expenses and serious issues. If you rent property, collect rent on that property, and are directly responsible for managing some type of rental property, it is in your best interest to carry this type of insurance.
Insurance can help offset expenses associated with unforeseen events and circumstances.
Examples of these issues include structure fires, tornadoes, thunderstorm damage, tropical storms, hurricanes, blizzards, earthquakes, volcano damage, ice, and vandalism.
How Much Does It Cost?
Rental insurance for landlords varies in cost. There are many factors that go into determining how much the insurance will cost. There are many that are able to obtain a policy for as little as $500 annually; however, this typically only covers very small units and comes with a high level of limitations when it comes to options.
Larger units and those with risks, such as ponds and swimming pools, may cost several thousands of dollars for a year’s worth of coverage.
The size of the structure, the location of the rental property, the age of the structure, the general condition of the rental, security system placement, the presence of fire sprinklers, and similar products will directly impact how much you pay for renter’s insurance for landlords.
If you are a landlord or a property manager, rental insurance for landlords is a must-have. Not only does it protect your property, it protects your tenants, and it protects you.
The coverage will prevent you from having to pull massive amounts of money out of your own pocket to cover damages and losses that may occur. Here at Pioneer Property Management, we specialize in ensuring that your property is protected.
If you would like assistance in dealing with tenants, preparing your rental property, marketing your property, and optimizing your business success – as a whole -we can help! Additionally, we can help in ensuring that you get the absolute best price and coverage on rental insurance for landlords.