The vast majority of homeowners maintain homeowner’s insurance. Unfortunately, homeowner’s insurance rarely covers property damage that occurs when the unit is being rented out by another person. In these cases, the property is likely considered more of a business than a home. It is important to obtain the appropriate insurance coverage to provide superior protection for your rental properties.
Landlord insurance is used to protect rental property. This insurance generally covers damage to the structure of the property, as well as damage to the landlord’s income. It may even cover missing rent if the building becomes uninhabitable for an extended period of time. Landlords may also want to consider obtaining Umbrella coverage to provide additional protection to your investment. Additionally, landlord insurance covers liability, which ensures that medical expenses and legal fees can be paid if someone becomes damaged on your property.
Though landlord insurance covers damage to the property, it does not cover damage that occurs to the personal belongings of tenants. It is often recommended that landlords require their tenants to obtain renters insurance to protect their own property. Renters insurance is also able to cover liability costs and it covers the renter’s personal property if it becomes damaged in many different ways. Another benefit of renters insurance is that it covers temporary lodging expenses when the building is uninhabitable.
There are a few things that aren’t covered by either insurance, so it may be necessary for landlords to obtain additional policies, depending on the location and risk to their building. Floods are rarely covered by basic policies, so flood insurance might be a sound investment. To learn more about the insurance that you should obtain for your rental properties, contact our experts at the Keyrenter in Napa Valley today!