Rental Property Insurance
Rental properties can be good an investment but be aware of the liability risks.
It’s important to have the correct type and amount of coverage on your property. If one or multiple buildings is damaged, or if a guest or tenant is injured it’s important to be ready.
Because each property is different, there is not one type of coverage that will fit everyone.
Rental property covered under personal insurance is habitational property owned by an individual, not a corporation, partnership or LLC, and rented to individuals. The structure may consist of up to four units and the owner may occupy one of the units in a multiunit structure. If your property does not fit the above criteria, it will fall under a commercial insurance policy.
The unit should comply with all governmental codes. The age and condition of the building, the type of separation or firewalls that exist between units are important. Personal property exposure depends on the items supplied by the landlord. These items are subject to theft from outsiders as well as tenants, so: the fewer such items, the better the risk.
Premises liability exposure
The landlord must provide a secure dwelling to decrease liability. All heating units and wiring must be up to code. Carpeting, steps and other potential trip/fall hazards should be minimized. Sidewalks and driveways should be free from defects. A service activity log to document the landlord’s response to tenants’ needs should exist. Because discrimination suits are now being lodged against landlords, stated procedures and clear guidelines for tenant acceptability should be in place to prevent discrimination.
More Home Insurance Links
Your home may be be your most expensive life purchase. Therefore, it’s a great idea for your homeowner’s policy to reflect your investment.
Rental property covered under personal insurance is habitational property owned by an individual, not a corporation, partnership or LLC, and rented to individuals. The structure may consist of up to four units and the owner may occupy one of the units in a multiunit structure.
Condominium or cooperative unit owners own only the inside of their units. The outside of their units are owned by the condominium association or the cooperative. All insurance-related issues must be evaluated based on the condominium or cooperative bylaws.
In order to have all of the coverage your typical home policy covers, you must purchase a vacant home policy. There are additional underwriting criteria for these policies and generally they require that you keep the utilities on, lawn maintained and someone must inspect the property on a regular basis.
Frequently people go for years without reviewing their insurance program, even though life quickly changes. By answering a few questions, you can have the peace of mind knowing that your family and possessions are protected.