Homeowners Insurance for Rental Property – What You Should Know
What is homeowner’s insurance for rental property? Well, it’s a great idea to carry some sort of coverage, since the odds are you’ll have some form of damage to your home. Whether it’s from a fire, flood or vandalism, you want to make sure you can replace everything. The best way to go about getting that coverage is through an insurance agent. They are going to help you identify what type of damage to your home is actually worth, and then recommend the proper amount of protection based on that value.
If your house is older than eight years old, you may want to consider carrying insurance coverage. Tenants often do not have the same insurance protections afforded to homeowners, and the renters will be held responsible for any damage caused by vandalism, or theft. Some insurance companies will even provide their tenants with a specific amount of coverage for just such a situation. While landlords can also carry liability insurance, it’s not a good idea for them to rely solely on that as a form of protection.
The first step in finding a policy is figuring out exactly what kind of coverage is needed. If you are a renter, the insurance should be tailored to your specific needs. You’ll likely have a greater need for theft protection, since most of your stuff is probably not worth very much. You should also have a need for coverage for damage to the structure of your home, as well as to personal items inside the home.
Homeowners insurance for rental property will include things like liability protection. This part of the policy will cover the costs for injury or death caused by the home owner, his guest or tenants. It will also cover damage done to the home, or the belongings inside. If there’s any damage done to your rental property, your renter should be covered, whether it’s from fire or smoke damage. In many cases, your insurance company will also include payment for lost rental income.
In addition, a lot of standard homes policies will also include dwelling coverage. This part of the plan will usually cover replacement cost if your dwelling is completely destroyed by fire or water damage, vandalism or a national disaster. There is some variation among insurance companies regarding the replacement cost coverage, but it should include at least a small amount for rebuilding costs.
After you know what your coverage options are, the next step is finding a provider and a policy. You can do this by visiting comparison sites that compare different insurance policies. Comparison sites may offer a free quote online for various dwelling coverage plans. If you use a site that offers more than one type of policy – homeowners, renters, etc. – you can get multiple quotes by providing different information about your tenant and yourself.
Some policies also provide an optional rider to cover additional damages or repairs due to circumstances beyond your control. It is always a good idea to add such riders to your let guidelines, since the majority of them do not offer much in the way of liability protection. If you add riders, you should also consider the impact of those additions on your premiums. While most let guidelines already include limits on liability, it’s still a good idea to double-check. A standard homeowners insurance for rental property insurance quote will typically not cover damages beyond those mentioned in the let guidelines.
Some insurance companies have specialty lines of insurance specifically for residential properties. They cover damage from hurricanes, tornadoes, earthquakes and vandalism. These types of disasters are far more likely to occur in a rental residence, so they will often carry a higher premium than a policy designed for a home. Before choosing an insurance coverage for your pet, be sure to take the time to read through your let’s policies carefully. You may find something in them you didn’t know about. Always consider the risks involved in natural disasters, and review your let guidelines to find something you can truly protect yourself against.