Maybe you’re moving up to a bigger home and holding on to your former residence as a rental property. Or maybe you’ve tried to sell your home without success. Whatever the reason, if you’re thinking about renting out your home, you need to look into landlord insurance.
A comprehensive landlord’s rental property insurance policy will protect your investment property, so that you can rent it out with confidence. In this post, Gregg S. Marcus, a Long Island Insurance Executive explains the importance of a landlord insurance policy for rental property owners.
Your rental property is an important investment and can provide a steady source of income. But all sorts of hazards, from lightning to kitchen fires, could damage your property–and your wallet. Landlord’s insurance provides all the coverage you need to protect your property from damage, and you from legal and personal liability.
The typical landlord’s rental property insurance policy covers:
Your rental building and other private structures (such as a garage or shed) – financial support in the event that the building and its fittings/fixtures suffer damage or destruction due to a specified number of perils.
Your personal property – similar protection may be available for your contents although some landlords may choose not to take out contents cover in situations where they are letting on an unfurnished basis.
Liability – this offers a degree of financial protection against court awards (plus possibly some components of legal costs) in the event you are sued for damages or injury suffered by a third party, as a result of negligence on your property.
There may be a range of additional protections that do not easily fit within the above three categories, that may include things such as trace and access cover (for situations where a tradesperson is forced to cause damage to your property while trying to find the source of problem), loss of rental income protection in situations where this is due to an insured event, and malicious damage.
Homeowners insurance covers your house if it burns down, your possessions if there is a break-in and medical and legal bills if someone gets hurt on your property. However homeowner’s insurance might not offer protection if you decide to rent out your home.
By Brooklyn Corey