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With the real estate market being as unsteady as it has been over the past years, many people have found themselves as accidental landlords. Many new homeowners have found it more difficult than expected to sell their previous homes, forcing them to rent the old houses until the market changes.

It is a common assumption that homeowner’s insurance covers the home no matter who is living in it, but that is often untrue. When a homeowner’s policy is written, the insurance company considers the owner’s lifestyle and level of risk. If the property is being rented, a traditional homeowner’s policy will often no longer provide coverage.

Whether you are a real estate investor or a landlord for a single property, rental property insurance is an essential element of protecting your investment.

Understanding Rental Property Insurance

As with most insurance, a rental property insurance policy should be crafted to fit your specific needs. There are three major coverages for you to consider:

Dwelling Coverage – covers the property in the case of damage from fire, hail, vandalism, and other dangers. Policies can vary from basic to full coverage, so it is important to understand what your policy does and does not cover.

Personal Liability Coverage – covers you from any injury or property damage claims that arise from your property ownership. For instance, if your tenant has a guest that trips on a crack in the driveway, you may be liable for their medical bills. This coverage would pay for the medical bills and any legal costs associated with the claim.

Loss of Rental Income Coverage – covers the loss of income that could arise if your rental property must be vacated while it is being repaired from damages associated with a covered loss.

Keep in mind that your rental property insurance does not generally cover your tenants’ personal belongings, so it is important to insist that your tenants have rental insurance.

How Much Coverage Do I Need?

Each landlord’s needs and level of risk is different, and it is important to have a policy that is tailored for your needs. Your BenefitSource insurance professional will work with you to find the right coverage for the lowest cost possible.

You can call us directly at (877) 215-5431 or email us for more information.

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