Article 2 of 3 in Insurance for Renters, Landlord, and Condos
If you are already a landlord or thinking about becoming one by purchasing a rental property in the near future, you need to purchase landlord insurance. Purchasing landlord insurance is a critical, and typically required, step in renting out your home. Whether you are renting out a house, apartment, or space inside your own home, you need to purchase landlord insurance to protect yourself and your property.
Why You Need Landlord Insurance
Landlord insurance is designed not only to cover the rental home or unit, but also to give the landlord added home insurance coverage for exposure to lawsuits that is unique to being a landlord. Whether you are renting out an entire home, apartment unit or the basement unit of your home, you need to have landlord insurance to cover risk that could arise out of renting to a tenant.
Consider the following scenarios:
Your landlord insurance policy will not only cover the home itself, but will provide homeowner liability coverage protecting you from lawsuits and judgments. Your run of the mill homeowner's insurance does not offer this protection when you rent out your home or apartment building.
What Rental Home Insurance Covers
The following coverage should be on your landlord insurance quote (your actual quote may very by the general coverage should be outline within the quote)(unclear what this is supposed to say):
TIP: Tenants sometimes have the opinion that landlord are rich! For this reason, if injury should occur, the amount of a claim can escalate quickly. Mitigate any potential lawsuits by repairing any dangerous damage quickly. Inspect your property at least once a year if not twice.
Rental Home Insurance for Your Basement Apartment
If you are renting out a section of your home or perhaps a basement apartment, check with your insurance agent or home insurance company first. If your unit has a separate entrance, it may be necessary to secure a rental home insurance policy for the unit. Check to see what your home insurance carrier's requirements are for the rental unit, and make sure you are compliant. Don't just jump on the bare minimum coverage if you are renting out a room in your home! Remember, we are talking about the rental unit that is attached to your personal home. If nothing else, write a clause in your lease that requires the tenant to maintain renter's insurance of their own at all times during the term of the lease. The tenants own rental policy will provide personal liability coverage for the tenant that could provide you additional coverage in the event the tenant damages or destroys the dwelling through his or her negligence.
TIP: Get the amount of insurance you need to protect your home and rental unit from damage or liability. Calculate how much your home and possessions are worth, and insure yourself appropriately to protect from total loss.
Claims under your Landlord Insurance
If you have a home disaster (i.e., fire, hurricane damage, an explosion) first and foremost, contact your rental home insurance company immediately. Secure all damaged items at the dwelling to prevent further damage, and make sure all tenants are safely removed from the home. Supply the insurance company with a copy of your lease or any other documents they request to assist in determining the amount for any loss of use claim. Make sure you secure estimates for repairs and make yourself available to the insurance adjuster so that repairs can begin as soon as possible.
TIP: If you are notified of a potential danger at your property by your tenant, make sure you address it immediately. The fact that you did not remedy any situation that becomes a claim could put you at a greater risk of being sued. If you find yourself being sued or in a lawsuit for damage or injury that occurred at your rental home, get the advice of an attorney.
Rental homes or units can provide a landlord with extra income, but require landlord insurance to cover the additional layer of risk associated with being a landlord. Talk to your agent extensively about the type of rental dwelling you are renting. Let your agent know if it is being rented furnished, and if so, make sure your rental home insurance properly insures those items. Also discuss the personal liability limit under your landlord insurance policy, and make certain you have proper liability protection. Inquire about the personal injury protection coverage which includes coverage for such things as libel, slander or wrongful eviction. These things can happen. Landlord insurance provides the additional landlord liability coverage for the risks associated with being a landlord. A relatively inexpensive policy, landlord insurance is well worth the cost.
If you would like a free quote for landlord insurance that will cover your rental dwelling and give you the extra coverage for risk associated with being a landlord, click here and visit the Free Advice quote center today.